WGU D089 STUDY GUIDE | PRINCIPLES OF
ECONOMICS | QUESTIONS AND ANSWERS
| OBJECTIVE ASSESSMENT PREP | GRADED
A+ | GUARANTEED SUCCESS
Updated Questions and Answers | 100% Verified Exam Prep
, mixed economy consumer demand and regulations/safety/environment
positive economies -what is and what will happen
-economic issues, action is taken or not taken (facts)
normative economics -what should or ought to be
-value-based solutions (opinions)
factors of production -land and natural resources
-labor
-capital
-entrepreneurship
circular flow model examines relationship between firms and households
budget constraint all combinations of goods/services that a consumer may purchase given current prices
within his/her given income
opportunity cost the value of what you give up / the value of what you gain
law of diminishing returns point where the level of profits or benefits gained is less than the amount of money or
energy invested
equilibrium price quantity demanded is equal to quantity supplied
equilibrium quantity quantity of good/service brought at equilibrium price, quantity produced and bought
where the supply and demand curves intersect
demand elasticity how responsive the quantity demanded is to a change in price in percentage of terms
quantity demanded (Qd) total number of units purchased of a specific price
demand schedule chart that shows the number of goods/services demanded at specific prices
law of demand common relationship that a higher price leads to a lower quantity demanded of a certain
good/service and a lower price leads to a higher quantity demanded while all other
variables are held constant
ECONOMICS | QUESTIONS AND ANSWERS
| OBJECTIVE ASSESSMENT PREP | GRADED
A+ | GUARANTEED SUCCESS
Updated Questions and Answers | 100% Verified Exam Prep
, mixed economy consumer demand and regulations/safety/environment
positive economies -what is and what will happen
-economic issues, action is taken or not taken (facts)
normative economics -what should or ought to be
-value-based solutions (opinions)
factors of production -land and natural resources
-labor
-capital
-entrepreneurship
circular flow model examines relationship between firms and households
budget constraint all combinations of goods/services that a consumer may purchase given current prices
within his/her given income
opportunity cost the value of what you give up / the value of what you gain
law of diminishing returns point where the level of profits or benefits gained is less than the amount of money or
energy invested
equilibrium price quantity demanded is equal to quantity supplied
equilibrium quantity quantity of good/service brought at equilibrium price, quantity produced and bought
where the supply and demand curves intersect
demand elasticity how responsive the quantity demanded is to a change in price in percentage of terms
quantity demanded (Qd) total number of units purchased of a specific price
demand schedule chart that shows the number of goods/services demanded at specific prices
law of demand common relationship that a higher price leads to a lower quantity demanded of a certain
good/service and a lower price leads to a higher quantity demanded while all other
variables are held constant
