WGU - D089 Principles of Economics |263 Questions
with Verified Answers
10th (Principles of Economics ) Ans✓✓✓ There is short-run tradeoff between
inflation and unemployment.
1st (Principles of Economics ) Ans✓✓✓ Everyone faces tradeoffs
2nd (Principles of Economics ) Ans✓✓✓ The cost of something is determined by
what you give up to get it.
3rd (Principles of Economics ) Ans✓✓✓ Rational people think at the margin.
4th (Principles of Economics ) Ans✓✓✓ People respond to incentives.
5th (Principles of Economics ) Ans✓✓✓ Trade can benefit everyone.
6th (Principles of Economics ) Ans✓✓✓ Markets are a sound method of
organizing economic activity.
7th (Principles of Economics ) Ans✓✓✓ Government may be able to improve
market outcomes.
8th (Principles of Economics ) Ans✓✓✓ A nation's standard of living depends on
its ability to produce.
,9th (Principles of Economics ) Ans✓✓✓ Printing too much money causes prices
to rise.
Absolute Advantage Ans✓✓✓ The capability to produce more of a given product
using less of a given resource than a competing entity
Absolute Quota Ans✓✓✓ Strictly limiting the quantity of goods that may enter a
country
Accounting Profit Ans✓✓✓ Total revenues - Explicit costs
Includes appreciation.
Acquisition Ans✓✓✓ When one firm purchases another.
Ad Valorem Tariff Ans✓✓✓ Import tax based on a fixed percentage of the
assessed commercial value of imported goods
Adjustable Rate Mortgage Ans✓✓✓ A loan a borrower uses to purchase a home
and which the interest rate varies with the market interest rates
Adverse Selection Ans✓✓✓ A process in which markets deteriorate when buyers
and sellers have access to different or imperfect information also known as
asymmetric information.
,Aggregate Demand Aggregate Supply Model (AD-AS Model) Ans✓✓✓ A model
that shows what determines total supply or total demand for the economy and
how total demand in total supply interact at the macro economic level
Aggregate Demand Ans✓✓✓ An economic measurement of the total amount of
demand for all finished goods and services produced in an economy.
Aggregate Demand Curve Ans✓✓✓ Shows the total spending on domestic goods
and services at each price level
Aggregate Supply Ans✓✓✓ The total supply of goods and services available to a
particular market from producers.
Aggregate Supply Curve Ans✓✓✓ The total quantity of output that firms will
produce and sell at each price level
Allocative Efficiency Ans✓✓✓ Producing goods and services demanded by
consumers at a price that reflects the marginal cost
Allocative Efficiency Ans✓✓✓ Producing goods and services demanded by
consumers at a price that reflects the marginal cost.
Asset Ans✓✓✓ Something or someone of any value any portion of one's
property or effects so considered
Autarky Ans✓✓✓ National economic self sufficiency
, Automatic Stabilizers Ans✓✓✓ A type of fiscal policy designed to offset
fluctuations in the nation's economy through normal operations
Balanced Budget Ans✓✓✓ When the government spends exactly the same
amount as it receives in a given year
Bank Runs Ans✓✓✓ When a large number of customers of the bank or other
financial institution we drawls their deposits simultaneously over concerns of the
bank's solvency
Barriers to Entry Ans✓✓✓ The legal, technological, or market forces that may
discourage or prevent potential competitors from entering a market.
Barter Ans✓✓✓ Train one good or service for another without using money.
Base Year Ans✓✓✓ Starting point from which changes in prices are measured.
Basket of Goods and Services Ans✓✓✓ A fixed set of consumer products and
services valued on an annual basis.
Broadly Defined Ans✓✓✓ Markets that tend to be fairly inelastic and have no
good substitutes.
Budget Constraint Ans✓✓✓ Represents all the combinations of goods and
services that a consumer may purchase given current prices within his or her
given income.
with Verified Answers
10th (Principles of Economics ) Ans✓✓✓ There is short-run tradeoff between
inflation and unemployment.
1st (Principles of Economics ) Ans✓✓✓ Everyone faces tradeoffs
2nd (Principles of Economics ) Ans✓✓✓ The cost of something is determined by
what you give up to get it.
3rd (Principles of Economics ) Ans✓✓✓ Rational people think at the margin.
4th (Principles of Economics ) Ans✓✓✓ People respond to incentives.
5th (Principles of Economics ) Ans✓✓✓ Trade can benefit everyone.
6th (Principles of Economics ) Ans✓✓✓ Markets are a sound method of
organizing economic activity.
7th (Principles of Economics ) Ans✓✓✓ Government may be able to improve
market outcomes.
8th (Principles of Economics ) Ans✓✓✓ A nation's standard of living depends on
its ability to produce.
,9th (Principles of Economics ) Ans✓✓✓ Printing too much money causes prices
to rise.
Absolute Advantage Ans✓✓✓ The capability to produce more of a given product
using less of a given resource than a competing entity
Absolute Quota Ans✓✓✓ Strictly limiting the quantity of goods that may enter a
country
Accounting Profit Ans✓✓✓ Total revenues - Explicit costs
Includes appreciation.
Acquisition Ans✓✓✓ When one firm purchases another.
Ad Valorem Tariff Ans✓✓✓ Import tax based on a fixed percentage of the
assessed commercial value of imported goods
Adjustable Rate Mortgage Ans✓✓✓ A loan a borrower uses to purchase a home
and which the interest rate varies with the market interest rates
Adverse Selection Ans✓✓✓ A process in which markets deteriorate when buyers
and sellers have access to different or imperfect information also known as
asymmetric information.
,Aggregate Demand Aggregate Supply Model (AD-AS Model) Ans✓✓✓ A model
that shows what determines total supply or total demand for the economy and
how total demand in total supply interact at the macro economic level
Aggregate Demand Ans✓✓✓ An economic measurement of the total amount of
demand for all finished goods and services produced in an economy.
Aggregate Demand Curve Ans✓✓✓ Shows the total spending on domestic goods
and services at each price level
Aggregate Supply Ans✓✓✓ The total supply of goods and services available to a
particular market from producers.
Aggregate Supply Curve Ans✓✓✓ The total quantity of output that firms will
produce and sell at each price level
Allocative Efficiency Ans✓✓✓ Producing goods and services demanded by
consumers at a price that reflects the marginal cost
Allocative Efficiency Ans✓✓✓ Producing goods and services demanded by
consumers at a price that reflects the marginal cost.
Asset Ans✓✓✓ Something or someone of any value any portion of one's
property or effects so considered
Autarky Ans✓✓✓ National economic self sufficiency
, Automatic Stabilizers Ans✓✓✓ A type of fiscal policy designed to offset
fluctuations in the nation's economy through normal operations
Balanced Budget Ans✓✓✓ When the government spends exactly the same
amount as it receives in a given year
Bank Runs Ans✓✓✓ When a large number of customers of the bank or other
financial institution we drawls their deposits simultaneously over concerns of the
bank's solvency
Barriers to Entry Ans✓✓✓ The legal, technological, or market forces that may
discourage or prevent potential competitors from entering a market.
Barter Ans✓✓✓ Train one good or service for another without using money.
Base Year Ans✓✓✓ Starting point from which changes in prices are measured.
Basket of Goods and Services Ans✓✓✓ A fixed set of consumer products and
services valued on an annual basis.
Broadly Defined Ans✓✓✓ Markets that tend to be fairly inelastic and have no
good substitutes.
Budget Constraint Ans✓✓✓ Represents all the combinations of goods and
services that a consumer may purchase given current prices within his or her
given income.
