INO1 Principles of Economics Exam Version 1
Practice exam for Western Governors University WGU Exams under Western Governors University Exams (College Exams). 5 sample questions.
Sample Questions
You're viewing a limited preview. Log in and subscribe to access all questions.
Log InExam Questions
Question 1
Which is a macroeconomic topic?
Correct Answer: C
Rationale: The annual growth rate of an economy is a macroeconomic topic as it pertains to the economy as a whole. Gasoline price increases are microeconomic, affecting specific markets. Household entertainment expenditure is microeconomic, focusing on individual behavior. Wage hikes in a specific industry are also microeconomic.
Rationale: The annual growth rate of an economy is a macroeconomic topic as it pertains to the economy as a whole. Gasoline price increases are microeconomic, affecting specific markets. Household entertainment expenditure is microeconomic, focusing on individual behavior. Wage hikes in a specific industry are also microeconomic.
Question 2
Which characteristic is associated with a traditional economy?
Correct Answer: B
Rationale: Traditional economies rely on bartering and customs for trade, not money. Private ownership is typical in market economies. Competition-driven prices characterize market economies. Government-controlled resource distribution is a feature of command economies.
Rationale: Traditional economies rely on bartering and customs for trade, not money. Private ownership is typical in market economies. Competition-driven prices characterize market economies. Government-controlled resource distribution is a feature of command economies.
Question 3
Which question would be studied by a macroeconomist?
Correct Answer: D
Rationale: The impact of a constitutional amendment on the federal budget is a macroeconomic issue, affecting the entire economy. Alcohol tax effects on fatalities may have macro implications but focus on behavior. Medicine expenditure and corn prices are microeconomic, concerning individual markets.
Rationale: The impact of a constitutional amendment on the federal budget is a macroeconomic issue, affecting the entire economy. Alcohol tax effects on fatalities may have macro implications but focus on behavior. Medicine expenditure and corn prices are microeconomic, concerning individual markets.
Question 4
Which is a feature of a mixed economy?
Correct Answer: B
Rationale: Mixed economies feature both public and private resource ownership with some government regulation. Government monopolies are not typical. Centralized public ownership defines command economies. Decisions based on customs are characteristic of traditional economies.
Rationale: Mixed economies feature both public and private resource ownership with some government regulation. Government monopolies are not typical. Centralized public ownership defines command economies. Decisions based on customs are characteristic of traditional economies.
Question 5
Which term describes the acquisition of skills resulting from education or experience?
Correct Answer: B
Rationale: Human capital refers to skills and knowledge gained through education or experience. Tools are physical capital. Productivity measures output efficiency. Financial capital refers to monetary resources.
Rationale: Human capital refers to skills and knowledge gained through education or experience. Tools are physical capital. Productivity measures output efficiency. Financial capital refers to monetary resources.