WGU - D089 PRINCIPLES OF ECONOMICS 2025/ 2026 WITH ALL COMPLETE QUESTIONS AND DETAILED CORRECT ANSWERS (EXPERT VERIFIED) FOR GUARANTEED PASS ALREADY GRADED A+.

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WGU - D089 PRINCIPLES OF ECONOMICS 2025/
2026 WITH ALL COMPLETE QUESTIONS AND
DETAILED CORRECT ANSWERS (EXPERT
VERIFIED) FOR GUARANTEED PASS ALREADY
GRADED A+.
Economics

..... ANSWER ......

The study of how humans make decisions in the face of scarcity.



Factors of Production

..... ANSWER ......

Describes then inputs used in the production of goods or services to make an economic profit.



Macroeconomics

..... ANSWER ......

A branch of economic dealing with the performance, structure, behavior 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

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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.



1st (Principles of Economics )

..... ANSWER ......

Everyone faces tradeoffs



2nd (Principles of Economics )

..... ANSWER ...... The cost of something is determined by what you give up to get it.



3rd (Principles of Economics )

..... ANSWER ...... Rational people think at the margin.



4th (Principles of Economics )

..... ANSWER ...... People respond to incentives.



5th (Principles of Economics )

..... ANSWER ...... Trade can benefit everyone.

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6th (Principles of Economics )

..... ANSWER ...... Markets are a sound method of organizing economic activity.



7th (Principles of Economics )

..... ANSWER ...... Government may be able to improve market outcomes.



8th (Principles of Economics )

..... ANSWER ...... A nation's standard of living depends on its ability to produce.



9th (Principles of Economics )

..... ANSWER ...... Printing too much money causes prices to rise.



10th (Principles of Economics )

..... ANSWER ...... There is short-run tradeoff between inflation and unemployment.



Economic Systems

..... ANSWER ...... A system of the production, resource allocation, and distribution of goods and
services within a society or give geographic area.



Traditional Economy

..... ANSWER ...... A economic system that relies on customs, history. and time-honored beliefs.
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.

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(Centralized)



Market Economy

..... ANSWER ...... An economic system in which the decisions regarding investment, production, and
distribution are guided by the price signals created by the forces of supply and demand



(Decentralized)



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) coexist.



Positive Economics

..... ANSWER ...... The study of economics concerned with what is and what will happen if a course of
action is taken or not taken.



Normative Economics

..... ANSWER ...... The study of economics with what is and what will happen if a course of action is
taken or not taken.



Economic Models

..... ANSWER ...... A simplified version of reality that allows people to observe, understand and make
predictions about economic behavior.



Economic Indicators

..... ANSWER ...... A statistic about an economic activity.



Circular Flow Model

..... ANSWER ...... An economic model that shows the flow of money and goods through the economy.
The most common form of this model shows the circular flow of income between the household sector
and the business sector.