Principles of Economics Study Guide: Master Micro & Macro for Your OA

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Principles of Economics Comprehensive Review
Guide for OA and Pre-assessment Prep – Questions
Compiled from Modules 1-10 | 2025 WGU D089 OA
Practice Test
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Chapter 1: PowerPoint Notes Below!
══════════════ - ...ANSWER...✓✓


Economy:
(Start: PowerPoint, Taylor 4E CH 01) - ...ANSWER...✓✓
The way in which a society organizes the production,
distribution, and consumption of goods and services.


What three questions does the economy answer? (This is
the *economies of scale*.)
(PowerPoint, Taylor 4E CH 01) - ...ANSWER...✓✓ 1) What
is produced?
2) How is it produced?
3) Whom is it produced for?


Market-Oriented Economy:

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(PowerPoint, Taylor 4E CH 01) - ...ANSWER...✓✓
Individuals and businesses make the most economic
decisions, with the government playing a background
role.


(In other words, the government is not in the hot seat.)


Command Economy:
(PowerPoint, Taylor 4E CH 01) - ...ANSWER...✓✓ The
government makes most economic decisions; individual
and business decisions play only a background role.


(In other words, the government is in the hot seat.)


Concerning the Market-Oriented Economy and the
Command Economy, most economies lie somewhere
between these two extremes and have a substantial role
for both the market and the government, although...
(PowerPoint, Taylor 4E CH 01). - ...ANSWER...✓✓ The
emphasis varies in different countries.


How is an economy interconnected? Please explain.

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(PowerPoint, Taylor 4E CH 01) - ...ANSWER...✓✓ The
interconnectedness of an economy is displayed in how a
modern economy is entwined.


Every person and every good is linked by economic
transactions—sometimes directly, often indirectly— to a
vast array of other goods, people, and businesses.


2013 Index of Economic Freedom:
(PowerPoint, Taylor 4E CH 01) - ...ANSWER...✓✓
Countries with the Most Economic Freedom:
1) Hong Kong
2) Singapore
3) Australia
4) New Zealand
5) Switzerland
6) Canada
7) Chile
8) Mauritius
9) Denmark
10) United States of America

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Countries with the Least Economic Freedom:
168) Iran
169) Turkmenistan
170) Equatorial Guinea
171) Democratic Republic of Congo
172) Bruma
173) Eritrea
174) Venezuela
175) Zimbabwe
176) Cuba
177) North Korea


Division of Labor:
(PowerPoint, Taylor 4E CH 01) - ...ANSWER...✓✓ People
earn income by specializing in what they produce and
then use that income to purchase the products they
desire.


The division of labor allows individuals and firms to
specialize and to produce more for several reasons; here
are three: