WGU D089 (PRINCIPLES OF ECONOMICS) EXAM LATEST
2025-2026 WITH ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS
rational decision making - ANSWER-think at the margin; marginal benefit must
| | | | | | | | | |
exceed marginal cost
| | |
Positive analysis - ANSWER-the study of "what is?"; descriptive analysis
| | | | | | | | |
normative analysis - ANSWER-the study of "what ought to be?"; prescriptive
| | | | | | | | | |
analysis, reflects personal views, values and judgments
| | | | | | |
Circular Flow diagram - ANSWER-a visual model of the economy that shows
| | | | | | | | | | |
how dollars flow through markets among households and firms
| | | | | | | | |
Production Possibilities Frontier (PPF) - ANSWER-a curve showing the
| | | | | | | |
maximum attainable combinations of two products that may be produced with
| | | | | | | | | |
available resources and current technology
| | | | |
law of increasing opportunity cost - ANSWER-The more resources already
| | | | | | | | |
devoted to an activity, the smaller the payoff of devoting additional resources
| | | | | | | | | | |
|to that activity
| |
,Economic growth (production) - ANSWER-the ability of the economy to
| | | | | | | | |
increase the production of goods and services; shifts in PPF
| | | | | | | | | |
Scarcity - ANSWER-Because of this, a country is limited to points on or below its
| | | | | | | | | | | | | |
PPF
|
Efficient production - ANSWER-Maximum output from a given amount of input
| | | | | | | | | |
Law of Demand - ANSWER-consumers buy more of a good when its price
| | | | | | | | | | | |
decreases and less when its price increases
| | | | | | |
Four Economic Resources - ANSWER-land, labor, capital, entrepreneurship
| | | | | | |
Microeconomics - ANSWER-the study of how households and firms make
| | | | | | | | |
decisions and how they interact in markets; functioning of individual parts of
| | | | | | | | | | |
the economy
| |
Macroeconomics - ANSWER-The study of the economy as a whole | | | | | | | | |
Efficiency - ANSWER-Getting the most that we can out of our scare resources
| | | | | | | | | | | |
Equity - ANSWER-Distributing output in a fair manner
| | | | | | |
Opportunity cost - ANSWER-whatever must be given up to obtain an item; cost
| | | | | | | | | | | |
of the alternative
| | |
change in quantity demanded - ANSWER-movement along the same demand
| | | | | | | | |
curve; caused by a change in P
| | | | | | |
, change in demand - ANSWER-a shift of the demand curve, which changes the
| | | | | | | | | | | |
quantity demanded at any given price
| | | | | |
Determinants of Demand - ANSWER-tastes and preferences; Prices of related
| | | | | | | | |
goods (substitutes, complements) income, consumers expectations, number of
| | | | | | | |
consumers, taxes or subsidies on buyers
| | | | | |
Law of Supply - ANSWER-producers offer more of a good as its price increases
| | | | | | | | | | | | |
and less as its price falls
| | | | | |
Change in Quantity Supplied - ANSWER-movement along the same supply
| | | | | | | | |
curve caused by a change in price
| | | | | | |
Change in Supply - ANSWER-a shift of the supply curve, which changes the
| | | | | | | | | | | |
quantity supplied at any given price
| | | | | |
Determinants of Supply - ANSWER-Level of technology, Price of
| | | | | | | |
inputs/resources, sellers' expectation of the future, number of producers, taxes
| | | | | | | | |
|or subsidies on sellers
| | |
price elasticity of demand - ANSWER-how much the quantity demanded of a
| | | | | | | | | | |
good responds to a change in price of that good
| | | | | | | | | |
Determinants of price elasticity of demand - ANSWER-necessity vs luxury,
| | | | | | | | |
percentage of budget, closeness of substitutes, market definition, durability of
| | | | | | | | |
good, time period
| | |
Price elasticity of demand formula - ANSWER-percentage change in quantity
| | | | | | | | |
demanded/percentage change in price
| | | |
2025-2026 WITH ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS
rational decision making - ANSWER-think at the margin; marginal benefit must
| | | | | | | | | |
exceed marginal cost
| | |
Positive analysis - ANSWER-the study of "what is?"; descriptive analysis
| | | | | | | | |
normative analysis - ANSWER-the study of "what ought to be?"; prescriptive
| | | | | | | | | |
analysis, reflects personal views, values and judgments
| | | | | | |
Circular Flow diagram - ANSWER-a visual model of the economy that shows
| | | | | | | | | | |
how dollars flow through markets among households and firms
| | | | | | | | |
Production Possibilities Frontier (PPF) - ANSWER-a curve showing the
| | | | | | | |
maximum attainable combinations of two products that may be produced with
| | | | | | | | | |
available resources and current technology
| | | | |
law of increasing opportunity cost - ANSWER-The more resources already
| | | | | | | | |
devoted to an activity, the smaller the payoff of devoting additional resources
| | | | | | | | | | |
|to that activity
| |
,Economic growth (production) - ANSWER-the ability of the economy to
| | | | | | | | |
increase the production of goods and services; shifts in PPF
| | | | | | | | | |
Scarcity - ANSWER-Because of this, a country is limited to points on or below its
| | | | | | | | | | | | | |
PPF
|
Efficient production - ANSWER-Maximum output from a given amount of input
| | | | | | | | | |
Law of Demand - ANSWER-consumers buy more of a good when its price
| | | | | | | | | | | |
decreases and less when its price increases
| | | | | | |
Four Economic Resources - ANSWER-land, labor, capital, entrepreneurship
| | | | | | |
Microeconomics - ANSWER-the study of how households and firms make
| | | | | | | | |
decisions and how they interact in markets; functioning of individual parts of
| | | | | | | | | | |
the economy
| |
Macroeconomics - ANSWER-The study of the economy as a whole | | | | | | | | |
Efficiency - ANSWER-Getting the most that we can out of our scare resources
| | | | | | | | | | | |
Equity - ANSWER-Distributing output in a fair manner
| | | | | | |
Opportunity cost - ANSWER-whatever must be given up to obtain an item; cost
| | | | | | | | | | | |
of the alternative
| | |
change in quantity demanded - ANSWER-movement along the same demand
| | | | | | | | |
curve; caused by a change in P
| | | | | | |
, change in demand - ANSWER-a shift of the demand curve, which changes the
| | | | | | | | | | | |
quantity demanded at any given price
| | | | | |
Determinants of Demand - ANSWER-tastes and preferences; Prices of related
| | | | | | | | |
goods (substitutes, complements) income, consumers expectations, number of
| | | | | | | |
consumers, taxes or subsidies on buyers
| | | | | |
Law of Supply - ANSWER-producers offer more of a good as its price increases
| | | | | | | | | | | | |
and less as its price falls
| | | | | |
Change in Quantity Supplied - ANSWER-movement along the same supply
| | | | | | | | |
curve caused by a change in price
| | | | | | |
Change in Supply - ANSWER-a shift of the supply curve, which changes the
| | | | | | | | | | | |
quantity supplied at any given price
| | | | | |
Determinants of Supply - ANSWER-Level of technology, Price of
| | | | | | | |
inputs/resources, sellers' expectation of the future, number of producers, taxes
| | | | | | | | |
|or subsidies on sellers
| | |
price elasticity of demand - ANSWER-how much the quantity demanded of a
| | | | | | | | | | |
good responds to a change in price of that good
| | | | | | | | | |
Determinants of price elasticity of demand - ANSWER-necessity vs luxury,
| | | | | | | | |
percentage of budget, closeness of substitutes, market definition, durability of
| | | | | | | | |
good, time period
| | |
Price elasticity of demand formula - ANSWER-percentage change in quantity
| | | | | | | | |
demanded/percentage change in price
| | | |
