WGU D089 (PRINCIPLES OF ECONOMICS) EXAM WITH
ACTUAL QUESTIONS AND CORRECT VERIFIED ANSWERS
| ALREADY GRADED A+ | 100% GUARANTEED PASS |
LATEST 2026/2027.
Positive analysis - ANSWER-the study of "what is?"; descriptive analysis
normative analysis - ANSWER-the study of "what ought to be?"; prescriptive
analysis, reflects personal views, values and judgments
Circular Flow diagram - ANSWER-a visual model of the economy that shows
how dollars flow through markets among households and firms
Production Possibilities Frontier (PPF) - ANSWER-a curve showing the
maximum attainable combinations of two products that may be produced with
available resources and current technology
rational decision making - ANSWER-think at the margin; marginal benefit must
exceed marginal cost
Efficient production - ANSWER-Maximum output from a given amount of
input
Law of Demand - ANSWER-consumers buy more of a good when its price
decreases and less when its price increases
Four Economic Resources - ANSWER-land, labor, capital, entrepreneurship
Macroeconomics - ANSWER-The study of the economy as a whole
,Efficiency - ANSWER-Getting the most that we can out of our scare resources
Equity - ANSWER-Distributing output in a fair manner
Opportunity cost - ANSWER-whatever must be given up to obtain an item; cost
of the alternative
change in quantity demanded - ANSWER-movement along the same demand
curve; caused by a change in P
law of increasing opportunity cost - ANSWER-The more resources already
devoted to an activity, the smaller the payoff of devoting additional resources to
that activity
Economic growth (production) - ANSWER-the ability of the economy to
increase the production of goods and services; shifts in PPF
Scarcity - ANSWER-Because of this, a country is limited to points on or below
its PPF
change in demand - ANSWER-a shift of the demand curve, which changes the
quantity demanded at any given price
Determinants of Demand - ANSWER-tastes and preferences; Prices of related
goods (substitutes, complements) income, consumers expectations, number of
consumers, taxes or subsidies on buyers
Law of Supply - ANSWER-producers offer more of a good as its price increases
and less as its price falls
, Change in Quantity Supplied - ANSWER-movement along the same supply
curve caused by a change in price
Microeconomics - ANSWER-the study of how households and firms make
decisions and how they interact in markets; functioning of individual parts of
the economy
Determinants of price elasticity of demand - ANSWER-necessity vs luxury,
percentage of budget, closeness of substitutes, market definition, durability of
good, time period
perfectly elastic - ANSWER-flat demand curve; consumers are perfectly price
sensitive
Elasticity - ANSWER-changes along the same demand curve
perfect competition - ANSWER-a market structure in which a large number of
firms all produce the same product
rationing mechanism of free competitive market - ANSWER-price
Price control - ANSWER-a regulation that sets a maximum or minimum legal
price for a particular good
Price ceiling - ANSWER-A legal maximum on the price at which a good can be
sold
non-binding price ceiling - ANSWER-price ceiling set above equilibrium price;
no impact on the market
ACTUAL QUESTIONS AND CORRECT VERIFIED ANSWERS
| ALREADY GRADED A+ | 100% GUARANTEED PASS |
LATEST 2026/2027.
Positive analysis - ANSWER-the study of "what is?"; descriptive analysis
normative analysis - ANSWER-the study of "what ought to be?"; prescriptive
analysis, reflects personal views, values and judgments
Circular Flow diagram - ANSWER-a visual model of the economy that shows
how dollars flow through markets among households and firms
Production Possibilities Frontier (PPF) - ANSWER-a curve showing the
maximum attainable combinations of two products that may be produced with
available resources and current technology
rational decision making - ANSWER-think at the margin; marginal benefit must
exceed marginal cost
Efficient production - ANSWER-Maximum output from a given amount of
input
Law of Demand - ANSWER-consumers buy more of a good when its price
decreases and less when its price increases
Four Economic Resources - ANSWER-land, labor, capital, entrepreneurship
Macroeconomics - ANSWER-The study of the economy as a whole
,Efficiency - ANSWER-Getting the most that we can out of our scare resources
Equity - ANSWER-Distributing output in a fair manner
Opportunity cost - ANSWER-whatever must be given up to obtain an item; cost
of the alternative
change in quantity demanded - ANSWER-movement along the same demand
curve; caused by a change in P
law of increasing opportunity cost - ANSWER-The more resources already
devoted to an activity, the smaller the payoff of devoting additional resources to
that activity
Economic growth (production) - ANSWER-the ability of the economy to
increase the production of goods and services; shifts in PPF
Scarcity - ANSWER-Because of this, a country is limited to points on or below
its PPF
change in demand - ANSWER-a shift of the demand curve, which changes the
quantity demanded at any given price
Determinants of Demand - ANSWER-tastes and preferences; Prices of related
goods (substitutes, complements) income, consumers expectations, number of
consumers, taxes or subsidies on buyers
Law of Supply - ANSWER-producers offer more of a good as its price increases
and less as its price falls
, Change in Quantity Supplied - ANSWER-movement along the same supply
curve caused by a change in price
Microeconomics - ANSWER-the study of how households and firms make
decisions and how they interact in markets; functioning of individual parts of
the economy
Determinants of price elasticity of demand - ANSWER-necessity vs luxury,
percentage of budget, closeness of substitutes, market definition, durability of
good, time period
perfectly elastic - ANSWER-flat demand curve; consumers are perfectly price
sensitive
Elasticity - ANSWER-changes along the same demand curve
perfect competition - ANSWER-a market structure in which a large number of
firms all produce the same product
rationing mechanism of free competitive market - ANSWER-price
Price control - ANSWER-a regulation that sets a maximum or minimum legal
price for a particular good
Price ceiling - ANSWER-A legal maximum on the price at which a good can be
sold
non-binding price ceiling - ANSWER-price ceiling set above equilibrium price;
no impact on the market
