WGU D089 LATEST EXAM PRINCIPLES OF
ECONOMICS EXAM UPDATED ACTUAL Exam
Question and Answer (2026/2027) | A+
Verified
• 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.
• 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.
• Circular Flow Model . CORRECT ANSWER: An economic model that shows
the flow of money and goods through the economy. The most common form of this
model shows the circular flow of income between the household sector and the
business sector.
• Human Capital . CORRECT ANSWER: The accumulated skills and education of
workers.
• Research and Development . CORRECT ANSWER: Term commonly used to
describe the activities undertaken by firms and other entities such as individual
entrepreneurs to create new or improved products and processes.
• Partnership . CORRECT ANSWER: A legal form of business operation between
two or more individuals who share management and profits.
• Merger . CORRECT ANSWER: Combining two companies into a single larger
company
• Factors of Production . CORRECT ANSWER: Describes the inputs used in the
production of goods or services to make an economic profit.
ECONOMICS EXAM UPDATED ACTUAL Exam
Question and Answer (2026/2027) | A+
Verified
• 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.
• 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.
• Circular Flow Model . CORRECT ANSWER: An economic model that shows
the flow of money and goods through the economy. The most common form of this
model shows the circular flow of income between the household sector and the
business sector.
• Human Capital . CORRECT ANSWER: The accumulated skills and education of
workers.
• Research and Development . CORRECT ANSWER: Term commonly used to
describe the activities undertaken by firms and other entities such as individual
entrepreneurs to create new or improved products and processes.
• Partnership . CORRECT ANSWER: A legal form of business operation between
two or more individuals who share management and profits.
• Merger . CORRECT ANSWER: Combining two companies into a single larger
company
• Factors of Production . CORRECT ANSWER: Describes the inputs used in the
production of goods or services to make an economic profit.
