1|Page
D089 Principles of Economics Final Retake Exam Review
Questions and Correct Answers Latest 2025/ D089 OA
Retake Practice Test 2025
Economics - ...ANSWER...✓✓ The study of how humans
make decisions in the face of scarcity.
Factors of Production - ...ANSWER...✓✓ Describes
theninputs 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.
,2|Page
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.
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.
,3|Page
4th (Principles of Economics ) - ...ANSWER...✓✓ People
respond to incentives.
5th (Principles of Economics ) - ...ANSWER...✓✓ Trade
can benefit everyone.
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.
, 4|Page
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.
(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)
D089 Principles of Economics Final Retake Exam Review
Questions and Correct Answers Latest 2025/ D089 OA
Retake Practice Test 2025
Economics - ...ANSWER...✓✓ The study of how humans
make decisions in the face of scarcity.
Factors of Production - ...ANSWER...✓✓ Describes
theninputs 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.
,2|Page
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.
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.
,3|Page
4th (Principles of Economics ) - ...ANSWER...✓✓ People
respond to incentives.
5th (Principles of Economics ) - ...ANSWER...✓✓ Trade
can benefit everyone.
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.
, 4|Page
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.
(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)
