WGU D089 PRINCIPLES OF
ECONOMICS
Economics
The study of how humans make decisions in the face of scarcity.
Factors of Production
Describes then inputs used in the production of goods or services to
make an economic profit.
Macroeconomics
A branch of economic dealing with the performance, structure, behavior
and decision making of an economy as a whole.
A characteristic of capital is?
It can be in the form of intellectual discoveries.
,Describe a scenario that would include microeconomics?
As a result of a freeze, the price of cherries increases.
How does a society decide how to distribute its scarce resources?
What, how and for whom to produce goods and services.
What is the result when the economy produces more of one good, but
has to give up more and more of other goods?
Increasing opportunity costs
An economy produces 2 goods with homogeneous resources, how is
the PPF drawn?
As a constant slope, downward from left to right
What is used to help describe the interaction of businesses and
households in markets?
The circular flow model
,What can be concluded about a company operating at a point inside its
PPF?
The resources of the company are being inefficiently utilized.
What is the relationship between the production of Good A&B, if a
country produces both & operated on bowed out PPF?
If production of Good A increases, then production of Good B will
decrease.
Accurately describe the characteristics of Demand.
Changes in income will shift the demand curve, and changes in the
market price of the good will result in a movement along the curve.
ow is opportunity cost calculated?
By dividing the amount of a good you have given up by the amount of
the good you have gained.
How does opportunity cost appear along a linear production
possibilities frontier?
As a constant
, What is happening to opportunity cost along a bowed out production
possibilities frontier?
An increase in the quantity demanded
What is the inverse relationship between price and quantity known as?
The law of demand
What does a fall in the price of a good almost always cause?
An increase in the quantity demanded
What are positive and normative economic thought?
Two specific aspects of economic reasoning
What does the law of demand assume?
That all variables that affect demand, other than price, remain constant
ECONOMICS
Economics
The study of how humans make decisions in the face of scarcity.
Factors of Production
Describes then inputs used in the production of goods or services to
make an economic profit.
Macroeconomics
A branch of economic dealing with the performance, structure, behavior
and decision making of an economy as a whole.
A characteristic of capital is?
It can be in the form of intellectual discoveries.
,Describe a scenario that would include microeconomics?
As a result of a freeze, the price of cherries increases.
How does a society decide how to distribute its scarce resources?
What, how and for whom to produce goods and services.
What is the result when the economy produces more of one good, but
has to give up more and more of other goods?
Increasing opportunity costs
An economy produces 2 goods with homogeneous resources, how is
the PPF drawn?
As a constant slope, downward from left to right
What is used to help describe the interaction of businesses and
households in markets?
The circular flow model
,What can be concluded about a company operating at a point inside its
PPF?
The resources of the company are being inefficiently utilized.
What is the relationship between the production of Good A&B, if a
country produces both & operated on bowed out PPF?
If production of Good A increases, then production of Good B will
decrease.
Accurately describe the characteristics of Demand.
Changes in income will shift the demand curve, and changes in the
market price of the good will result in a movement along the curve.
ow is opportunity cost calculated?
By dividing the amount of a good you have given up by the amount of
the good you have gained.
How does opportunity cost appear along a linear production
possibilities frontier?
As a constant
, What is happening to opportunity cost along a bowed out production
possibilities frontier?
An increase in the quantity demanded
What is the inverse relationship between price and quantity known as?
The law of demand
What does a fall in the price of a good almost always cause?
An increase in the quantity demanded
What are positive and normative economic thought?
Two specific aspects of economic reasoning
What does the law of demand assume?
That all variables that affect demand, other than price, remain constant
