WGU D089: Module 1 With Questions And Answers.
What are the three fundamental questions every economy must answer? Give an example of a
"What" question. - 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"? - 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? -
Principle 8: Nations ability to produce goods and services.
Using the 10 Principles of Economics, explain why trade is beneficial? - Principle 5: Trade leaves
everyone in a better position. Allows people to concentrate on what they do best and exchange their
ability with others.
How does printing money impact prices? - Printing to much money can cause prices to rise which
causes inflation.
What are the differences between the Traditional and the Market economy? -
Identify two disadvantages of a Command economy? -
Explain one of the advantages of the Mixed economy? -
How are macroeconomics and microeconomics different? -
Give an example of a normative statement. -
Identify the payment that goes to each of the four factors of production -
https://www.stuvia.com/
, What doe the Circular flow diagram depict? -
Economics - Study of how humans make decisions in the face of scarcity.
Factors of production - Describes the inputs used in the production of goods or services to make an
economic profit.
Macroeconomics - 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 - 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 - Basic economic problems, the gap between limited, scarce, resources, and theoretically
limitless wants.
What to Produce: - 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 - The next best alternative that is given up when a choice is made.
How to Produce it: - There are all sorts of choices to be made in determining how goods and services
should be produced.
From whom to produce it: - If a good or service is produced, a decision must be made about who will
get it. The decision if one person, or group or service.
Principal 1 - Everyone faces tradeoffs- People must decide what they are willing to give up to get
what they need or want, For example person wants a new car but will spend most of her check and
will forgo other wants or needs.
https://www.stuvia.com/
What are the three fundamental questions every economy must answer? Give an example of a
"What" question. - 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"? - 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? -
Principle 8: Nations ability to produce goods and services.
Using the 10 Principles of Economics, explain why trade is beneficial? - Principle 5: Trade leaves
everyone in a better position. Allows people to concentrate on what they do best and exchange their
ability with others.
How does printing money impact prices? - Printing to much money can cause prices to rise which
causes inflation.
What are the differences between the Traditional and the Market economy? -
Identify two disadvantages of a Command economy? -
Explain one of the advantages of the Mixed economy? -
How are macroeconomics and microeconomics different? -
Give an example of a normative statement. -
Identify the payment that goes to each of the four factors of production -
https://www.stuvia.com/
, What doe the Circular flow diagram depict? -
Economics - Study of how humans make decisions in the face of scarcity.
Factors of production - Describes the inputs used in the production of goods or services to make an
economic profit.
Macroeconomics - 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 - 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 - Basic economic problems, the gap between limited, scarce, resources, and theoretically
limitless wants.
What to Produce: - 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 - The next best alternative that is given up when a choice is made.
How to Produce it: - There are all sorts of choices to be made in determining how goods and services
should be produced.
From whom to produce it: - If a good or service is produced, a decision must be made about who will
get it. The decision if one person, or group or service.
Principal 1 - Everyone faces tradeoffs- People must decide what they are willing to give up to get
what they need or want, For example person wants a new car but will spend most of her check and
will forgo other wants or needs.
https://www.stuvia.com/
