Economics D089 Exam Questions with 100% Verified Correct Answers 2025/2026

Economics D089 Exam Questions with 100% Verified Correct Answers 2025/2026 If the price in the market is $10, is the market in equilibrium? Explain. How will the market adjust to reach equilibrium? - Correct Answer The market will reach equilibrium when the quantity of goods supplied is equal to the quantity of goods demanded According to the 10 Principles of Economics, what determines a nation's standard of living? - Correct Answer A nations standard of living is determined by its ability to produce goods and services. What are the three fundamental questions every economy must answer? - Correct Answer What will be produced, how it will be produced, and who will it be produced for. How does printing money impact prices of goods? - Correct Answer Inflation, prices of goods will increase. What are the differences between the Traditional and the Market economy? - Correct Answer Traditional systems are controlled by traditional beliefs (religion, morals, politics). A market system is controlled by the demand for goods and supply. Identify two disadvantages of a Command economy? - Correct Answer Some of the cons include a lack of efficient resource allocation, and a lack of innovation. What is a consequence of a government printing more money? - Correct Answer Decreased unemployment. What do economists mean when they say that people "think at the margin"? - Correct Answer It means comparing the marginal benefit of a possible action to its marginal cost. Explain one of the advantages of the Mixed economy? - Correct Answer Goods and services are readily available because consumers and businesses have the freedom to negotiate prices. What is a benefit of using a traditional economic system? - Correct Answer Everyone knows their role in the market.