WGU D089 LATEST EXAM PRINCIPLES OF
ECONOMICS EXAM UPDATED ACTUAL Exam
Question and Answer (2026/2027) | Final
Review
• capital -✓✓ a factor of production that is made to produce other things (tools,
equipment, etc.)
• circular flow diagram -✓✓ a diagram that views the economy as consisting of
households and firms interacting in a goods and services market and a factor
market
• entrepreneurship -✓✓ a person who seeks to earn profits by finding new ways to
organize factors of production (creating new products or ways of doing things)
• factors of production -✓✓ the resources available to the economy for the
production of goods and services (Land, Labor, Capital, and Entrepreneurship)
• goods and services market -✓✓ a market in which firms are sellers of what they
produce and households are buyers
• human capital -✓✓ the skills a worker has as a result of education, training, or
experience that can be used in production
• labor -✓✓ the human effort that can be applied to the production of goods and
services (workers working)
• macroeconomics -✓✓ the branch of economics that focuses on broad issues such
as growth, unemployment, inflation, and trade balance
• microeconomics -✓✓ the study of how households and firms make decisions and
how they interact in markets
• What are the three fundamental questions every economy must answer? -✓✓ 1.
What to produce
2. How to produce it
3. For whom to produce it
ECONOMICS EXAM UPDATED ACTUAL Exam
Question and Answer (2026/2027) | Final
Review
• capital -✓✓ a factor of production that is made to produce other things (tools,
equipment, etc.)
• circular flow diagram -✓✓ a diagram that views the economy as consisting of
households and firms interacting in a goods and services market and a factor
market
• entrepreneurship -✓✓ a person who seeks to earn profits by finding new ways to
organize factors of production (creating new products or ways of doing things)
• factors of production -✓✓ the resources available to the economy for the
production of goods and services (Land, Labor, Capital, and Entrepreneurship)
• goods and services market -✓✓ a market in which firms are sellers of what they
produce and households are buyers
• human capital -✓✓ the skills a worker has as a result of education, training, or
experience that can be used in production
• labor -✓✓ the human effort that can be applied to the production of goods and
services (workers working)
• macroeconomics -✓✓ the branch of economics that focuses on broad issues such
as growth, unemployment, inflation, and trade balance
• microeconomics -✓✓ the study of how households and firms make decisions and
how they interact in markets
• What are the three fundamental questions every economy must answer? -✓✓ 1.
What to produce
2. How to produce it
3. For whom to produce it
