WGU - D089 Principles of Economics Latest Updated Questions and Answers

Economics - ANSWER-The study of how humans make decisions in the face of scarcity. Factors of Production - ANSWER-Describes theninputs used in the production of goods or services to make an economic profit. Macroeconomics - ANSWER-A branch of economic dealing with the performance, structure, behavior and decision making of an economy as a whole. Microeconomics - 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 - ANSWER-The basic economic problem, the gap between limited, scarce, resources and theoretically limitless wants Opportunity Cost - ANSWER-The next best alternative that is given up when a choice is made. Think at the Margin - ANSWER-Thinking about what the next step or an additional action means for a person. Marginal Benefit - 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 ) - ANSWER-Everyone faces tradeoffs 2nd (Principles of Economics ) - ANSWER-The cost of something is determined by what you give up to get it. 3rd (Principles of Economics ) - ANSWER-Rational people think at the margin. 4th (Principles of Economics ) - ANSWER-People respond to incentives. 5th (Principles of Economics ) - ANSWER-Trade can benefit everyone. 6th (Principles of Economics ) - ANSWER-Markets are a sound method of organizing economic activity. 7th (Principles of Economics ) - ANSWER-Government may be able to improve market outcomes.