Wgu - D089 - Principles Of Economics |211 Questions| With Correct Answers.

What happens initially to the average total cost when the total cost increases? {Ans: The average total cost decreases initially as production increases.}What direction does the short run aggregate supply (SRAS) curve shift when input costs fall? {Ans: The curve shifts to the right}How is more money created by loans that are made to individuals or firms? {Ans: The money is likely deposited in other accounts}When a deposit is made at a bank, the bank can lend out all of the deposit except? {Ans: The required reserve ratio}What does the concentratio ration measure? {Ans: The share of the total sales in an industry of the top four to eight firms.}How do average variable costs typically appear on a graph? {Ans: The are usually U-shaped}What does the expanded circular flow diagram include? {Ans: Interactions between households, firms, governments, and the rest of the world, as well as the financial, factor, and goods and services markets.}What is the business cycle? {Ans: The pattern of expansion and contraction of GDP.}In the short run, there is at least one input that cannot be changed. What is this input called? {Ans: A fixed input}What are wage