WGU - D089 Principles of Economics || 100% Error-free
Answers.
Economics correct answers The study of how humans make decisions in the face of scarcity.
Factors of Production correct answers Describes theninputs used in the production of goods
or services to make an economic profit.
Macroeconomics correct answers A branch of economic dealing with the performance,
structure, behavior and decision making of an economy as a whole.
Microeconomics correct answers 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 correct answers The basic economic problem, the gap between limited, scarce,
resources and theoretically limitless wants
Opportunity Cost correct answers The next best alternative that is given up when a choice is
made.
Think at the Margin correct answers Thinking about what the next step or an additional
action means for a person.
Marginal Benefit correct answers 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 ) correct answers Everyone faces tradeoffs
2nd (Principles of Economics ) correct answers The cost of something is determined by what
you give up to get it.
3rd (Principles of Economics ) correct answers Rational people think at the margin.
4th (Principles of Economics ) correct answers People respond to incentives.
5th (Principles of Economics ) correct answers Trade can benefit everyone.
6th (Principles of Economics ) correct answers Markets are a sound method of organizing
economic activity.
7th (Principles of Economics ) correct answers Government may be able to improve market
outcomes.
8th (Principles of Economics ) correct answers A nation's standard of living depends on its
ability to produce.
9th (Principles of Economics ) correct answers Printing too much money causes prices to
rise.
,10th (Principles of Economics ) correct answers There is short-run tradeoff between inflation
and unemployment.
Economic Systems correct answers A system of the production, resource allocation, and
distribution of goods and services within a society or give geographic area.
Traditional Economy correct answers A economic system that relies on customs, history. and
time-honored beliefs. Guides economic decisions such as production and distribution.
Command Economy correct answers An economic system in which production, investment,
prices, and incomes are determined centrally by a government.
(Centralized)
Market Economy correct answers 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 correct answers 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 correct answers The study of economics concerned with what is and
what will happen if a course of action is taken or not taken.
Normative Economics correct answers The study of economics with what is and what will
happen if a course of action is taken or not taken.
Economic Models correct answers A simplified version of reality that allows people to
observe, understand and make predictions about economic behavior.
Economic Indicators correct answers A statistic about an economic activity.
Circular Flow Model correct answers 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.
Human Capital correct answers The accumulated skills and education of workers.
Research and Development correct answers Term commonly used to describe the activities
undertaken by firms and other entities such as individual entrepreneurs to create new or
improved products and processes.
Partnership correct answers A legal form of business operation between two or more
individuals who share management and profits.
Merger correct answers Combining two companies into a single larger company
, Factors of Production correct answers Describes the inputs used in the production of goods or
services to make an economic profit.
Financial Capital correct answers Most commonly refers to assets needed by a company to
provide goods or services as measured in terms of money value.
Profit (Q/A) correct answers What is the payment of production for entrepreneurship?
Rent (Q/A) correct answers What is the payment of production for the use of land or natural
resources?
Interest (Q/A) correct answers What is the payment for the use of capital?
Wages (Q/A) correct answers What are the payments for the use of labor?
Efficiently correct answers Producing the maximum amount of goods and services possible
given available resources and technology.
Production Possibilities Frontier correct answers A graphical representation used by
economists to show the alternative communications of two goods or services that an economy
can produce with the given resources and technology when the resources are fully and
efficiently used at a given point in time.
Budget Constraint correct answers Represents all the combinations of goods and services that
a consumer may purchase given current prices within his or her given income.
Opportunity Set correct answers All possible combinations of consumption that someone can
afford given the prices of goods and the individuals income.
Homogeneous correct answers A resource having one form of set of skills.
Heterogeneous correct answers A resource having two different forms of skills.
Capital Goods correct answers Goods that are used in producing other goods rather than
being bought by consumers.
Consumer Goods correct answers Goods bought and used by consumers.
Law of Increasing Opportunity Costs correct answers Once all factors of production are at
maximum output and efficiency, producing more of one good requires giving up an
increasing amount of the other good.
Underutilizing correct answers The condition in which economic resources are not being used
to their full potential
Inefficient correct answers The underemployment of any of the four economic resources.
Constant Opportunity Cost of Production (Q/A) correct answers The upward (positive) slope
of the production possibility frontier represents what characteristic?
Answers.
Economics correct answers The study of how humans make decisions in the face of scarcity.
Factors of Production correct answers Describes theninputs used in the production of goods
or services to make an economic profit.
Macroeconomics correct answers A branch of economic dealing with the performance,
structure, behavior and decision making of an economy as a whole.
Microeconomics correct answers 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 correct answers The basic economic problem, the gap between limited, scarce,
resources and theoretically limitless wants
Opportunity Cost correct answers The next best alternative that is given up when a choice is
made.
Think at the Margin correct answers Thinking about what the next step or an additional
action means for a person.
Marginal Benefit correct answers 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 ) correct answers Everyone faces tradeoffs
2nd (Principles of Economics ) correct answers The cost of something is determined by what
you give up to get it.
3rd (Principles of Economics ) correct answers Rational people think at the margin.
4th (Principles of Economics ) correct answers People respond to incentives.
5th (Principles of Economics ) correct answers Trade can benefit everyone.
6th (Principles of Economics ) correct answers Markets are a sound method of organizing
economic activity.
7th (Principles of Economics ) correct answers Government may be able to improve market
outcomes.
8th (Principles of Economics ) correct answers A nation's standard of living depends on its
ability to produce.
9th (Principles of Economics ) correct answers Printing too much money causes prices to
rise.
,10th (Principles of Economics ) correct answers There is short-run tradeoff between inflation
and unemployment.
Economic Systems correct answers A system of the production, resource allocation, and
distribution of goods and services within a society or give geographic area.
Traditional Economy correct answers A economic system that relies on customs, history. and
time-honored beliefs. Guides economic decisions such as production and distribution.
Command Economy correct answers An economic system in which production, investment,
prices, and incomes are determined centrally by a government.
(Centralized)
Market Economy correct answers 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 correct answers 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 correct answers The study of economics concerned with what is and
what will happen if a course of action is taken or not taken.
Normative Economics correct answers The study of economics with what is and what will
happen if a course of action is taken or not taken.
Economic Models correct answers A simplified version of reality that allows people to
observe, understand and make predictions about economic behavior.
Economic Indicators correct answers A statistic about an economic activity.
Circular Flow Model correct answers 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.
Human Capital correct answers The accumulated skills and education of workers.
Research and Development correct answers Term commonly used to describe the activities
undertaken by firms and other entities such as individual entrepreneurs to create new or
improved products and processes.
Partnership correct answers A legal form of business operation between two or more
individuals who share management and profits.
Merger correct answers Combining two companies into a single larger company
, Factors of Production correct answers Describes the inputs used in the production of goods or
services to make an economic profit.
Financial Capital correct answers Most commonly refers to assets needed by a company to
provide goods or services as measured in terms of money value.
Profit (Q/A) correct answers What is the payment of production for entrepreneurship?
Rent (Q/A) correct answers What is the payment of production for the use of land or natural
resources?
Interest (Q/A) correct answers What is the payment for the use of capital?
Wages (Q/A) correct answers What are the payments for the use of labor?
Efficiently correct answers Producing the maximum amount of goods and services possible
given available resources and technology.
Production Possibilities Frontier correct answers A graphical representation used by
economists to show the alternative communications of two goods or services that an economy
can produce with the given resources and technology when the resources are fully and
efficiently used at a given point in time.
Budget Constraint correct answers Represents all the combinations of goods and services that
a consumer may purchase given current prices within his or her given income.
Opportunity Set correct answers All possible combinations of consumption that someone can
afford given the prices of goods and the individuals income.
Homogeneous correct answers A resource having one form of set of skills.
Heterogeneous correct answers A resource having two different forms of skills.
Capital Goods correct answers Goods that are used in producing other goods rather than
being bought by consumers.
Consumer Goods correct answers Goods bought and used by consumers.
Law of Increasing Opportunity Costs correct answers Once all factors of production are at
maximum output and efficiency, producing more of one good requires giving up an
increasing amount of the other good.
Underutilizing correct answers The condition in which economic resources are not being used
to their full potential
Inefficient correct answers The underemployment of any of the four economic resources.
Constant Opportunity Cost of Production (Q/A) correct answers The upward (positive) slope
of the production possibility frontier represents what characteristic?
