WGU - D089 Principles of Economics Exam Questions With Correct Answers

WGU - D089 Principles of Economics
Exam Questions With Correct Answers
Economics |- |CORRECT |ANSWER✔✔-The |study |of |how |humans |make |decisions |in |the |face |of
|scarcity.




Factors |of |Production |- |CORRECT |ANSWER✔✔-Describes |theninputs |used |in |the |production |of
|goods |or |services |to |make |an |economic |profit.




Macroeconomics |- |CORRECT |ANSWER✔✔-A |branch |of |economic |dealing |with |the
|performance, |structure, |behavior |and |decision |making |of |an |economy |as |a |whole.




Microeconomics |- |CORRECT |ANSWER✔✔-A |branch |of |economics |that |studies |the |behavior |of
|individuals, |and |firms |in |making |decisions |regarding |the |allocation |of |scarce |resources |and |the


|interactions |among |these |individuals |and |firms.




Scarcity |- |CORRECT |ANSWER✔✔-The |basic |economic |problem, |the |gap |between |limited,
|scarce, |resources |and |theoretically |limitless |wants




Opportunity |Cost |- |CORRECT |ANSWER✔✔-The |next |best |alternative |that |is |given |up |when |a
|choice |is |made.




Think |at |the |Margin |- |CORRECT |ANSWER✔✔-Thinking |about |what |the |next |step |or |an
|additional |action |means |for |a |person.




Marginal |Benefit |- |CORRECT |ANSWER✔✔-The |incremental |increase |in |the |benefit |to |a
|consumer |caused |by |the |consumption |of |one |additional |unit |of |a |good |or |service.

,1st |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-Everyone |faces |tradeoffs



2nd |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-The |cost |of |something |is |determined
|by |what |you |give |up |to |get |it.




3rd |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-Rational |people |think |at |the |margin.



4th |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-People |respond |to |incentives.



5th |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-Trade |can |benefit |everyone.



6th |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-Markets |are |a |sound |method |of
|organizing |economic |activity.




7th |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-Government |may |be |able |to |improve
|market |outcomes.




8th |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-A |nation's |standard |of |living |depends
|on |its |ability |to |produce.




9th |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-Printing |too |much |money |causes |prices
|to |rise.




10th |(Principles |of |Economics |) |- |CORRECT |ANSWER✔✔-There |is |short-run |tradeoff |between
|inflation |and |unemployment.

, Economic |Systems |- |CORRECT |ANSWER✔✔-A |system |of |the |production, |resource |allocation,
|and |distribution |of |goods |and |services |within |a |society |or |give |geographic |area.




Traditional |Economy |- |CORRECT |ANSWER✔✔-A |economic |system |that |relies |on |customs,
|history. |and |time-honored |beliefs. |Guides |economic |decisions |such |as |production |and


|distribution.




Command |Economy |- |CORRECT |ANSWER✔✔-An |economic |system |in |which |production,
|investment, |prices, |and |incomes |are |determined |centrally |by |a |government. |




(Centralized)



Market |Economy |- |CORRECT |ANSWER✔✔-An |economic |system |in |which |the |decisions
|regarding |investment, |production, |and |distribution |are |guided |by |the |price |signals |created |by


|the |forces |of |supply |and |demand




(Decentralized)



Mixed |Economy |- |CORRECT |ANSWER✔✔-An |economic |system |in |which |both |private |enterprise
|and |a |degree |of |state |monopoly |(usually |in |public |services, |defense, |infrastructure, |and |basic


|industries) |coexist.




Positive |Economics |- |CORRECT |ANSWER✔✔-The |study |of |economics |concerned |with |what |is
|and |what |will |happen |if |a |course |of |action |is |taken |or |not |taken.




Normative |Economics |- |CORRECT |ANSWER✔✔-The |study |of |economics |with |what |is |and |what
|will |happen |if |a |course |of |action |is |taken |or |not |taken.