WGU D089: Module 1 Exam 2026
Questions and Answers
What are the three fundamental questions every economy must answer? Give an
example of a "What" question. - Correct Answer -What to produce, how it will be
produced, and from whom the goods or services are produced. What to produce
(Oil vs. Cattle), How to (Current vs. New technology), From who to produce
What do economists mean when they say that people "think at the margin"? -
Correct Answer -Thinking about the next step or an additional action means for a
person.
According to the 10 Principles of Economics, what determines a nation's standard
of living? - Correct Answer -Principle 8: Nations ability to produce goods and
services.
Using the 10 Principles of Economics, explain why trade is beneficial? - Correct
Answer -Principle 5: Trade leaves everyone in a better position. Allows people to
concentrate on what they do best and exchange their ability with others.
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,How does printing money impact prices? - Correct Answer -Printing to much
money can cause prices to rise which causes inflation.
What are the differences between the Traditional and the Market economy? -
Correct Answer -
Identify two disadvantages of a Command economy? - Correct Answer -
Explain one of the advantages of the Mixed economy? - Correct Answer -
How are macroeconomics and microeconomics different? - Correct Answer -
Give an example of a normative statement. - Correct Answer -
Identify the payment that goes to each of the four factors of production - Correct
Answer -
What doe the Circular flow diagram depict? - Correct Answer -
Economics - Correct Answer -Study of how humans make decisions in the face of
scarcity.
Factors of production - Correct Answer -Describes the inputs used in the
production of goods or services to make an economic profit.
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, Macroeconomics - Correct Answer -Branch of economics dealing with the
performance, structure, behavior, and decision-making of an economy as a whole.
Large economic think national or global
Microeconomics - Correct Answer -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. think small like
people and businesses.
Scarcity - Correct Answer -Basic economic problems, the gap between limited,
scarce, resources, and theoretically limitless wants.
What to Produce: - Correct Answer -Using the economy's scarce resources to
produce one thing requires giving up another. Every society must decide what it
will produce with its scarce resources.
opportunity cost - Correct Answer -The next best alternative that is given up when
a choice is made.
How to Produce it: - Correct Answer -There are all sorts of choices to be made in
determining how goods and services should be produced.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
Questions and Answers
What are the three fundamental questions every economy must answer? Give an
example of a "What" question. - Correct Answer -What to produce, how it will be
produced, and from whom the goods or services are produced. What to produce
(Oil vs. Cattle), How to (Current vs. New technology), From who to produce
What do economists mean when they say that people "think at the margin"? -
Correct Answer -Thinking about the next step or an additional action means for a
person.
According to the 10 Principles of Economics, what determines a nation's standard
of living? - Correct Answer -Principle 8: Nations ability to produce goods and
services.
Using the 10 Principles of Economics, explain why trade is beneficial? - Correct
Answer -Principle 5: Trade leaves everyone in a better position. Allows people to
concentrate on what they do best and exchange their ability with others.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,How does printing money impact prices? - Correct Answer -Printing to much
money can cause prices to rise which causes inflation.
What are the differences between the Traditional and the Market economy? -
Correct Answer -
Identify two disadvantages of a Command economy? - Correct Answer -
Explain one of the advantages of the Mixed economy? - Correct Answer -
How are macroeconomics and microeconomics different? - Correct Answer -
Give an example of a normative statement. - Correct Answer -
Identify the payment that goes to each of the four factors of production - Correct
Answer -
What doe the Circular flow diagram depict? - Correct Answer -
Economics - Correct Answer -Study of how humans make decisions in the face of
scarcity.
Factors of production - Correct Answer -Describes the inputs used in the
production of goods or services to make an economic profit.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
, Macroeconomics - Correct Answer -Branch of economics dealing with the
performance, structure, behavior, and decision-making of an economy as a whole.
Large economic think national or global
Microeconomics - Correct Answer -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. think small like
people and businesses.
Scarcity - Correct Answer -Basic economic problems, the gap between limited,
scarce, resources, and theoretically limitless wants.
What to Produce: - Correct Answer -Using the economy's scarce resources to
produce one thing requires giving up another. Every society must decide what it
will produce with its scarce resources.
opportunity cost - Correct Answer -The next best alternative that is given up when
a choice is made.
How to Produce it: - Correct Answer -There are all sorts of choices to be made in
determining how goods and services should be produced.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
