MicroFPC1)
Microeconomics (WGU eco no mics -Exam
Complete WGU FPC1
Study Guide, Key Concepts, Graphs & Practice Questions (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/micro eco no mics-wgu-fpc1-
5874577
Scarci ty T he condi ti on that ari ses because wants exceed the abi l i ty of resources
Scarcit y to sati sf y them.
T he soci al sci ence that studi es the choi ces that i ndi vi dual s, busi nesses,
Econom ics governments, and enti re soci eti es make as they cope wi th scarci ty, the i ncenti ves
that i nf l uence those choi ces, and the arrangements that coordi nate them.
T he study of the choi ces that i ndi vi dual s and busi nesses make and the way these
choi ces i nteract and are i nf l uenced by governments.
Microeconom ics S ome exa mples of micr oeconomic ques tions a r e: Will you buy a 3-D televis ion or a s ta nda r d one?
Will Nintendo s ell mor e units of Wii if it cuts the pr ice? Will a cut in the income ta x r a te encour a g e
people to wor k long er hour s ?
T he study of the aggregate (or total ) ef f ects on the nati onal economy and the
Macroeconom ics gl obal economy of the choi ces that i ndi vi dual s, busi nesses, and governments
make.
1 - H ow do choi ces end up determi ni ng what, how, and f or whom goods and
servi ces get produced?
2 Big Quest ions 2 - When do choi ces made i n the pursui t of sel f -i nterest al so promote the soci al
i nterest?
T he obj ects (goods) and the acti ons (servi ces) that peopl e val ue and produce to
Good and Services sati sf y human wants.
Self- I nt erest T he choi ces that are best f or the i ndi vi dual who makes them.
Social I nt erest T he choi ces that are best f or soci ety as a whol e.
, MicroFPC1)
Microeconomics (WGU eco no mics -Exam
Complete WGU FPC1
Study Guide, Key Concepts, Graphs & Practice Questions (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/micro eco no mics-wgu-fpc1-
5874577
T he expansi on of i nternati onal trade and the producti on of components and
Glob aliz at ion servi ces by f i rms i n other countri es
T he changes that occurred duri ng the l ast 25 years were based on one maj or
technol ogy: the mi croprocessor or computer chi p. T he spi n-of f s f rom f aster and
The I nform at ion Ag e 56cheaper computi ng have been wi despread i n tel ecommuni cati ons, musi c and
movi e recordi ng, and the automati on of mi l l i ons of routi ne tasks that previ ousl y
requi red human deci si on and acti on.
T he E arth i s getti ng hotter and the i ce at the two pol es i s mel ti ng. Si nce the l ate
ni neteenth century, the E arth’s surf ace temperature has i ncreased about 1 degree
F ahrenhei t, and cl ose to a hal f of that i ncrease occurred over the past 25 years.
Clim at e chang e Most cl i mate sci enti sts bel i eve that the current warmi ng has come at l east i n part
f rom human economi c acti vi ty—f rom sel f -i nterested choi ces—and that, i f l ef t
unchecked, the warmi ng wi l l bri ng l arge f uture economi c costs.
E very year si nce 2001, the U.S. government has run a budget def i ci t. On average,
the government has spent $1.8 bi l l i on a day more than i t has recei ved i n taxes. T he
A Social Securit y t im e b om b government’s debt has i ncreased each day by that amount. Over the ten years 2002
through 2011, government debt i ncreased by $6.5 tri l l i on. Your personal share of
thi s debt i s $21,600.
1. E co n o mics s t u d ie s ch o ice s t h a t a ris e
1. T he f act i s scarci ty—human wants exceed the resources avai l abl e.
fro m o n e fa ct . Wh a t is t h a t fa ct ?
2. Pro vid e t h re e e xa mp le s o f wa n t s in t h e
2. Securi ty f rom i nternati onal terrori sm, cl eaner ai r i n our ci ti es, better publ i c
Un it e d S t a t e s t o d a y t h a t a re e s p e cia lly school s. (You can perhaps thi nk of some more.)
p re s s in g b u t n o t s a t is fie d .
3. In t h e fo llo win g t h re e n e ws it e ms , fin d
e xa mp le s o f t h e wh a t , h o w, a n d fo r wh o m
3. More research i s a how questi on, and a cure f or cancer i s a what questi on. Good
q u e s t io n s : “Wit h mo re re s e a rch , we will educati on i s a what questi on, and every chi l d i s a f or whom questi on. Rai si ng
cu re ca n ce r”; “A go o d e d u ca t io n is t h e taxes i s a f or whom questi on.
righ t o f e ve ry ch ild ”; “Co n gre s s ra is e s
t a xe s t o cu rb t h e d e ficit .”
4. Ho w d o e s a n e w S t a rb u ck s in B e ijin g,
4. D eci si ons made by Starbucks are i n Starbucks’ sel f -i nterest but they serve the
Ch in a , in flu e n ce s e lf-in t e re s t a n d t h e sel f -i nterest of i ts customers and so contri bute to the soci al i nterest.
s o cia l in t e re s t ?
Microeconomics (WGU eco no mics -Exam
Complete WGU FPC1
Study Guide, Key Concepts, Graphs & Practice Questions (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/micro eco no mics-wgu-fpc1-
5874577
Scarci ty T he condi ti on that ari ses because wants exceed the abi l i ty of resources
Scarcit y to sati sf y them.
T he soci al sci ence that studi es the choi ces that i ndi vi dual s, busi nesses,
Econom ics governments, and enti re soci eti es make as they cope wi th scarci ty, the i ncenti ves
that i nf l uence those choi ces, and the arrangements that coordi nate them.
T he study of the choi ces that i ndi vi dual s and busi nesses make and the way these
choi ces i nteract and are i nf l uenced by governments.
Microeconom ics S ome exa mples of micr oeconomic ques tions a r e: Will you buy a 3-D televis ion or a s ta nda r d one?
Will Nintendo s ell mor e units of Wii if it cuts the pr ice? Will a cut in the income ta x r a te encour a g e
people to wor k long er hour s ?
T he study of the aggregate (or total ) ef f ects on the nati onal economy and the
Macroeconom ics gl obal economy of the choi ces that i ndi vi dual s, busi nesses, and governments
make.
1 - H ow do choi ces end up determi ni ng what, how, and f or whom goods and
servi ces get produced?
2 Big Quest ions 2 - When do choi ces made i n the pursui t of sel f -i nterest al so promote the soci al
i nterest?
T he obj ects (goods) and the acti ons (servi ces) that peopl e val ue and produce to
Good and Services sati sf y human wants.
Self- I nt erest T he choi ces that are best f or the i ndi vi dual who makes them.
Social I nt erest T he choi ces that are best f or soci ety as a whol e.
, MicroFPC1)
Microeconomics (WGU eco no mics -Exam
Complete WGU FPC1
Study Guide, Key Concepts, Graphs & Practice Questions (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/micro eco no mics-wgu-fpc1-
5874577
T he expansi on of i nternati onal trade and the producti on of components and
Glob aliz at ion servi ces by f i rms i n other countri es
T he changes that occurred duri ng the l ast 25 years were based on one maj or
technol ogy: the mi croprocessor or computer chi p. T he spi n-of f s f rom f aster and
The I nform at ion Ag e 56cheaper computi ng have been wi despread i n tel ecommuni cati ons, musi c and
movi e recordi ng, and the automati on of mi l l i ons of routi ne tasks that previ ousl y
requi red human deci si on and acti on.
T he E arth i s getti ng hotter and the i ce at the two pol es i s mel ti ng. Si nce the l ate
ni neteenth century, the E arth’s surf ace temperature has i ncreased about 1 degree
F ahrenhei t, and cl ose to a hal f of that i ncrease occurred over the past 25 years.
Clim at e chang e Most cl i mate sci enti sts bel i eve that the current warmi ng has come at l east i n part
f rom human economi c acti vi ty—f rom sel f -i nterested choi ces—and that, i f l ef t
unchecked, the warmi ng wi l l bri ng l arge f uture economi c costs.
E very year si nce 2001, the U.S. government has run a budget def i ci t. On average,
the government has spent $1.8 bi l l i on a day more than i t has recei ved i n taxes. T he
A Social Securit y t im e b om b government’s debt has i ncreased each day by that amount. Over the ten years 2002
through 2011, government debt i ncreased by $6.5 tri l l i on. Your personal share of
thi s debt i s $21,600.
1. E co n o mics s t u d ie s ch o ice s t h a t a ris e
1. T he f act i s scarci ty—human wants exceed the resources avai l abl e.
fro m o n e fa ct . Wh a t is t h a t fa ct ?
2. Pro vid e t h re e e xa mp le s o f wa n t s in t h e
2. Securi ty f rom i nternati onal terrori sm, cl eaner ai r i n our ci ti es, better publ i c
Un it e d S t a t e s t o d a y t h a t a re e s p e cia lly school s. (You can perhaps thi nk of some more.)
p re s s in g b u t n o t s a t is fie d .
3. In t h e fo llo win g t h re e n e ws it e ms , fin d
e xa mp le s o f t h e wh a t , h o w, a n d fo r wh o m
3. More research i s a how questi on, and a cure f or cancer i s a what questi on. Good
q u e s t io n s : “Wit h mo re re s e a rch , we will educati on i s a what questi on, and every chi l d i s a f or whom questi on. Rai si ng
cu re ca n ce r”; “A go o d e d u ca t io n is t h e taxes i s a f or whom questi on.
righ t o f e ve ry ch ild ”; “Co n gre s s ra is e s
t a xe s t o cu rb t h e d e ficit .”
4. Ho w d o e s a n e w S t a rb u ck s in B e ijin g,
4. D eci si ons made by Starbucks are i n Starbucks’ sel f -i nterest but they serve the
Ch in a , in flu e n ce s e lf-in t e re s t a n d t h e sel f -i nterest of i ts customers and so contri bute to the soci al i nterest.
s o cia l in t e re s t ?
