WGU Microeconomics C718 Exam Questions & Answers Verified & Updated

Economics - Correct the study of how humans make decisions in the face of scarcity 3 basic economic questions - Correct What to produce? How to produce? For whom to produce? opportunity cost - Correct measures cost by what is given up in exchange; opportunity cost measures the value of the forgone alternative How do economists assume individuals make choices? - Correct whatever will serve their own self-interest margin - Correct the current level of an activity choice at the margin - Correct a decision to do a little more or a little less of something Scientific Method - Correct a systemic set of procedures through which knowledge is created hypothesis - Correct assumption of a relationship between two or more variables that could be proven to be false. A statement is not a hypothesis if no conceivable test could show it to be false. theory - Correct A hypothesis that has not been rejected after widespread testing and that win