WGU D089 ECONOMICS LATEST EXAM 2025
WITH ACTUAL QUESTIONS AND CORRECT
ANSWERS ALREADY GRADED A+
Macroeconomics - ANSWER✔✔-A branch of economics dealing with the
performance, structure, behaviour, and decision-making of an economy as a
whole
Microeconomics - 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 - ANSWER✔✔-The basic economic problem; the gap between limited,
scarce , resources and theoretically limitless wants
Opportunity cost - ANSWER✔✔-The next best alternative that is given up when
a choice is made
Think at the margin - ANSWER✔✔-Thinking about what the next step or an
additional action means for a person
Marginal benefit - ANSWER✔✔-The incremental increase in the benefit to a
consumer caused by the consumption of one additional unit of a good or
service
,Principles of Economics #1 - ANSWER✔✔-Everyone faces trade-offs
Principles of Economics #2 - ANSWER✔✔-The cost of something is determined
by what you give up to get it
Principles of Economics #3 - ANSWER✔✔-Rational people think at the margin
Principles of Economics #4 - ANSWER✔✔-People respond to incentives
Principles of Economics #5 - ANSWER✔✔-Trade can benefit everyone
Principles of Economics #6 - ANSWER✔✔-Markets are a sound method of
organizing economic activity
Principles of Economics #7 - ANSWER✔✔-Governments may be able to improve
market outcomes
Principles of Economics #8 - ANSWER✔✔-A nation's standard of living depends
on it's ability to produce.
Principles of Economics #9 - ANSWER✔✔-Printing too much money causes
prices to rise
Principles of Economics #10 - ANSWER✔✔-There is a short-run trade-off
between inflation and unemployment
,Economic systems - ANSWER✔✔-A system of the production, resource
allocation, and distribution of goods and services within a society or a given
geographic area
Traditional Economy - ANSWER✔✔-An economic system that relies on customs,
history, and time-honored beliefs. Tradition guides economic decisions such as
production and distribution
Command Economy - ANSWER✔✔-An economic system in which production,
investment, prices, and incomes are determined centrally by a government
Market Economy - ANSWER✔✔-An economic system in which the decisions
regarding investments, production, and distribution are guided by the price
signals created by the forces of supply and demand
Mixed Economy - ANSWER✔✔-An economic system in which both private
enterprise and a degree of state monopoly (Usually in public services, defense,
infrastructure, and basic industries) co-exist
Five key characteristics of a Traditional Economy - ANSWER✔✔-1. It is centered
around families or tribes.
2. It exists in a hunter-gatherer and nomadic society.
3. Trade is heavily dependent on bartering rather than money.
4. It only produces what is needed, and a surplus is very rare.
5. It eventually changes from purely trade to the use of some type of currency.
Advantages to a Traditional Economy - ANSWER✔✔-There is little competition or
friction among members of the society.
People's roles and contributions are well understood.
, It can be more sustainable than a technology-based economy.
Disadvantages to a Traditional Economy - ANSWER✔✔-It is exposed to
environmental changes and weather patterns.
It is vulnerable to market of command economies, which consume and deplete
the resources or traditional economies.
Five key characteristics of a Command Economy - ANSWER✔✔-1. All economic
activity is planned and controlled by a centralized government power.
2. The government decides how to use and distribute the nation's natural,
capital, and labor resources.
3. A nation's central power controls the priorities for how goods and services
will be produced and distributed.
4. Domestic competition is overpowered as the government monopolizes
businesses considered essential for economic goals such as utilities, finance,
and automotive companies.
5. Businesses are required to follow specific hiring and production targets set
by the government. This creates regulations and directives to enforce the
centralized plan.
Advantages of a Command Economy - ANSWER✔✔-In this type of system,
goods, services, and resources are deployed without concern for
environmental or other regulatory issues.
The government can transform the entire society to fit the constraints of its
national vision through nationalizing industry and deciding where workers will
be placed.
Disadvantages of a Command Economy - ANSWER✔✔-Underlying black market
economies tend to develop as a response to difficult access to goods and
services.
WITH ACTUAL QUESTIONS AND CORRECT
ANSWERS ALREADY GRADED A+
Macroeconomics - ANSWER✔✔-A branch of economics dealing with the
performance, structure, behaviour, and decision-making of an economy as a
whole
Microeconomics - 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 - ANSWER✔✔-The basic economic problem; the gap between limited,
scarce , resources and theoretically limitless wants
Opportunity cost - ANSWER✔✔-The next best alternative that is given up when
a choice is made
Think at the margin - ANSWER✔✔-Thinking about what the next step or an
additional action means for a person
Marginal benefit - ANSWER✔✔-The incremental increase in the benefit to a
consumer caused by the consumption of one additional unit of a good or
service
,Principles of Economics #1 - ANSWER✔✔-Everyone faces trade-offs
Principles of Economics #2 - ANSWER✔✔-The cost of something is determined
by what you give up to get it
Principles of Economics #3 - ANSWER✔✔-Rational people think at the margin
Principles of Economics #4 - ANSWER✔✔-People respond to incentives
Principles of Economics #5 - ANSWER✔✔-Trade can benefit everyone
Principles of Economics #6 - ANSWER✔✔-Markets are a sound method of
organizing economic activity
Principles of Economics #7 - ANSWER✔✔-Governments may be able to improve
market outcomes
Principles of Economics #8 - ANSWER✔✔-A nation's standard of living depends
on it's ability to produce.
Principles of Economics #9 - ANSWER✔✔-Printing too much money causes
prices to rise
Principles of Economics #10 - ANSWER✔✔-There is a short-run trade-off
between inflation and unemployment
,Economic systems - ANSWER✔✔-A system of the production, resource
allocation, and distribution of goods and services within a society or a given
geographic area
Traditional Economy - ANSWER✔✔-An economic system that relies on customs,
history, and time-honored beliefs. Tradition guides economic decisions such as
production and distribution
Command Economy - ANSWER✔✔-An economic system in which production,
investment, prices, and incomes are determined centrally by a government
Market Economy - ANSWER✔✔-An economic system in which the decisions
regarding investments, production, and distribution are guided by the price
signals created by the forces of supply and demand
Mixed Economy - ANSWER✔✔-An economic system in which both private
enterprise and a degree of state monopoly (Usually in public services, defense,
infrastructure, and basic industries) co-exist
Five key characteristics of a Traditional Economy - ANSWER✔✔-1. It is centered
around families or tribes.
2. It exists in a hunter-gatherer and nomadic society.
3. Trade is heavily dependent on bartering rather than money.
4. It only produces what is needed, and a surplus is very rare.
5. It eventually changes from purely trade to the use of some type of currency.
Advantages to a Traditional Economy - ANSWER✔✔-There is little competition or
friction among members of the society.
People's roles and contributions are well understood.
, It can be more sustainable than a technology-based economy.
Disadvantages to a Traditional Economy - ANSWER✔✔-It is exposed to
environmental changes and weather patterns.
It is vulnerable to market of command economies, which consume and deplete
the resources or traditional economies.
Five key characteristics of a Command Economy - ANSWER✔✔-1. All economic
activity is planned and controlled by a centralized government power.
2. The government decides how to use and distribute the nation's natural,
capital, and labor resources.
3. A nation's central power controls the priorities for how goods and services
will be produced and distributed.
4. Domestic competition is overpowered as the government monopolizes
businesses considered essential for economic goals such as utilities, finance,
and automotive companies.
5. Businesses are required to follow specific hiring and production targets set
by the government. This creates regulations and directives to enforce the
centralized plan.
Advantages of a Command Economy - ANSWER✔✔-In this type of system,
goods, services, and resources are deployed without concern for
environmental or other regulatory issues.
The government can transform the entire society to fit the constraints of its
national vision through nationalizing industry and deciding where workers will
be placed.
Disadvantages of a Command Economy - ANSWER✔✔-Underlying black market
economies tend to develop as a response to difficult access to goods and
services.
