WGU D089 PRINCIPLES OF ECONOMICS
FINAL PAPER 2026 QUESTIONS WITH
CORRECT ANSWERS
⩥ 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
⩥ 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
⩥ Principles of Economics #1. Answer: Everyone faces trade-offs
,⩥ Principles of Economics #2. Answer: The cost of something is
determined by what you give up to get it
⩥ Principles of Economics #3. Answer: Rational people think at the
margin
⩥ Principles of Economics #4. Answer: People respond to incentives
⩥ Principles of Economics #5. Answer: Trade can benefit everyone
⩥ Principles of Economics #6. Answer: Markets are a sound method of
organizing economic activity
⩥ Principles of Economics #7. Answer: Governments may be able to
improve market outcomes
⩥ Principles of Economics #8. Answer: A nation's standard of living
depends on it's ability to produce.
⩥ Principles of Economics #9. Answer: Printing too much money causes
prices to rise
⩥ Principles of Economics #10. Answer: There is a short-run trade-off
between inflation and unemployment
,⩥ Economic systems. Answer: A system of the production, resource
allocation, and distribution of goods and services within a society or a
given geographic area
⩥ Traditional Economy. Answer: An economic system that relies on
customs, history, and time-honored beliefs. Tradition 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
⩥ Market Economy. Answer: An economic system in which the
decisions regarding investments, production, and distribution are guided
by the price signals created by the forces of supply and demand
⩥ 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) co-exist
⩥ Five key characteristics of a Traditional Economy. Answer: 1. It is
centered around families or tribes.
2. It exists in a hunter-gatherer and nomadic society.
3. Trade is heavily dependent on bartering rather than money.
, 4. It only produces what is needed, and a surplus is very rare.
5. It eventually changes from purely trade to the use of some type of
currency.
⩥ Advantages to a Traditional Economy. Answer: There is little
competition or friction among members of the society.
People's roles and contributions are well understood.
It can be more sustainable than a technology-based economy.
⩥ Disadvantages to a Traditional Economy. Answer: It is exposed to
environmental changes and weather patterns.
It is vulnerable to market of command economies, which consume and
deplete the resources or traditional economies.
⩥ Five key characteristics of a Command Economy. Answer: 1. All
economic activity is planned and controlled by a centralized government
power.
2. The government decides how to use and distribute the nation's natural,
capital, and labor resources.
3. A nation's central power controls the priorities for how goods and
services will be produced and distributed.
4. Domestic competition is overpowered as the government monopolizes
businesses considered essential for economic goals such as utilities,
finance, and automotive companies.
FINAL PAPER 2026 QUESTIONS WITH
CORRECT ANSWERS
⩥ 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
⩥ 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
⩥ Principles of Economics #1. Answer: Everyone faces trade-offs
,⩥ Principles of Economics #2. Answer: The cost of something is
determined by what you give up to get it
⩥ Principles of Economics #3. Answer: Rational people think at the
margin
⩥ Principles of Economics #4. Answer: People respond to incentives
⩥ Principles of Economics #5. Answer: Trade can benefit everyone
⩥ Principles of Economics #6. Answer: Markets are a sound method of
organizing economic activity
⩥ Principles of Economics #7. Answer: Governments may be able to
improve market outcomes
⩥ Principles of Economics #8. Answer: A nation's standard of living
depends on it's ability to produce.
⩥ Principles of Economics #9. Answer: Printing too much money causes
prices to rise
⩥ Principles of Economics #10. Answer: There is a short-run trade-off
between inflation and unemployment
,⩥ Economic systems. Answer: A system of the production, resource
allocation, and distribution of goods and services within a society or a
given geographic area
⩥ Traditional Economy. Answer: An economic system that relies on
customs, history, and time-honored beliefs. Tradition 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
⩥ Market Economy. Answer: An economic system in which the
decisions regarding investments, production, and distribution are guided
by the price signals created by the forces of supply and demand
⩥ 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) co-exist
⩥ Five key characteristics of a Traditional Economy. Answer: 1. It is
centered around families or tribes.
2. It exists in a hunter-gatherer and nomadic society.
3. Trade is heavily dependent on bartering rather than money.
, 4. It only produces what is needed, and a surplus is very rare.
5. It eventually changes from purely trade to the use of some type of
currency.
⩥ Advantages to a Traditional Economy. Answer: There is little
competition or friction among members of the society.
People's roles and contributions are well understood.
It can be more sustainable than a technology-based economy.
⩥ Disadvantages to a Traditional Economy. Answer: It is exposed to
environmental changes and weather patterns.
It is vulnerable to market of command economies, which consume and
deplete the resources or traditional economies.
⩥ Five key characteristics of a Command Economy. Answer: 1. All
economic activity is planned and controlled by a centralized government
power.
2. The government decides how to use and distribute the nation's natural,
capital, and labor resources.
3. A nation's central power controls the priorities for how goods and
services will be produced and distributed.
4. Domestic competition is overpowered as the government monopolizes
businesses considered essential for economic goals such as utilities,
finance, and automotive companies.
