WGU D089 Principles Of Economics Exam Questions
And Verified Answers GRADED A+| Latest Update
2026
Economics -CORRECT ANSWER The study of how humans make decisions in the face
of scarcity.
Factors of Production -CORRECT ANSWER Describes then inputs 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.
Economic Models -CORRECT ANSWER A simplified version of reality that allows
people to observe, understand and make predictions about economic behavior.
Economic Indicators -CORRECT ANSWER A statistic about an economic activity.
And Verified Answers GRADED A+| Latest Update
2026
Economics -CORRECT ANSWER The study of how humans make decisions in the face
of scarcity.
Factors of Production -CORRECT ANSWER Describes then inputs 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.
Economic Models -CORRECT ANSWER A simplified version of reality that allows
people to observe, understand and make predictions about economic behavior.
Economic Indicators -CORRECT ANSWER A statistic about an economic activity.
