Principles of Economics - WGU D089 (2025)Actual Exam
WGU - D089 Principles of Economics
Test|Complete Questions With Verified Answers With Rationales
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1. Economics The study of how humans make decisions in the face of scarcity.
2. Factors of Production Describes theninputs used in the production of goods or services to make
an economic profit.
3. Macroeconomics A branch of economic dealing with the performance, structure, behavior
and decision making of an economy as a whole.
4. Microeconomics 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.
5. Scarcity The basic economic problem, the gap between limited, scarce, resources
and theoretically limitless wants
6. Opportunity Cost The next best alternative that is given up when a choice is made.
7. Think at the Margin Thinking about what the next step or an additional action means for a
person.
8. Marginal Benefit The incremental increase in the benefit to a consumer caused by the
consumption of one additional unit of a good or service.
9. 1st (Principles of Eco- Everyone faces tradeoffs
nomics )
10. 2nd (Principles of Eco- The cost of something is determined by what you give up to get it.
nomics )
11. 3rd (Principles of Eco- Rational people think at the margin.
nomics )
12. 4th (Principles of Eco- People respond to incentives.
nomics )
, WGU - D089 Principles of Economics
Study online at https://quizlet.com/_h5z48a
13. 5th (Principles of Eco- Trade can benefit everyone.
nomics )
14. 6th (Principles of Eco- Markets are a sound method of organizing economic activity.
nomics )
15. 7th (Principles of Eco- Government may be able to improve market outcomes.
nomics )
16. 8th (Principles of Eco- A nation's standard of living depends on its ability to produce.
nomics )
17. 9th (Principles of Eco- Printing too much money causes prices to rise.
nomics )
18. 10th (Principles of Eco- There is short-run tradeoff between inflation and unemployment.
nomics )
19. Economic Systems A system of the production, resource allocation, and distribution of goods
and services within a society or give geographic area.
20. Traditional Economy A economic system that relies on customs, history. and time-honored
beliefs. Guides economic decisions such as production and distribution.
21. Command Economy An economic system in which production, investment, prices, and incomes
are determined centrally by a government.
(Centralized)
22. Market Economy An economic system in which the decisions regarding investment, pro-
duction, and distribution are guided by the price signals created by the
forces of supply and demand
(Decentralized)
, WGU - D089 Principles of Economics
Study online at https://quizlet.com/_h5z48a
23. Mixed Economy An economic system in which both private enterprise and a degree of state
monopoly (usually in public services, defense, infrastructure, and basic
industries) coexist.
24. Positive Economics The study of economics concerned with what is and what will happen if a
course of action is taken or not taken.
25. Normative Economics The study of economics with what is and what will happen if a course of
action is taken or not taken.
26. Economic Models A simplified version of reality that allows people to observe, understand
and make predictions about economic behavior.
27. Economic Indicators A statistic about an economic activity.
28. Circular Flow Model 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.
29. Human Capital The accumulated skills and education of workers.
30. Research and Devel- Term commonly used to describe the activities undertaken by firms and
opment other entities such as individual entrepreneurs to create new or improved
products and processes.
31. Partnership A legal form of business operation between two or more individuals who
share management and profits.
32. Merger Combining two companies into a single larger company
33. Factors of Production Describes the inputs used in the production of goods or services to make
an economic profit.
34. Financial Capital
WGU - D089 Principles of Economics
Test|Complete Questions With Verified Answers With Rationales
Study online at https://quizlet.com/_h5z48a
(100% Accurate Solutions)
1. Economics The study of how humans make decisions in the face of scarcity.
2. Factors of Production Describes theninputs used in the production of goods or services to make
an economic profit.
3. Macroeconomics A branch of economic dealing with the performance, structure, behavior
and decision making of an economy as a whole.
4. Microeconomics 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.
5. Scarcity The basic economic problem, the gap between limited, scarce, resources
and theoretically limitless wants
6. Opportunity Cost The next best alternative that is given up when a choice is made.
7. Think at the Margin Thinking about what the next step or an additional action means for a
person.
8. Marginal Benefit The incremental increase in the benefit to a consumer caused by the
consumption of one additional unit of a good or service.
9. 1st (Principles of Eco- Everyone faces tradeoffs
nomics )
10. 2nd (Principles of Eco- The cost of something is determined by what you give up to get it.
nomics )
11. 3rd (Principles of Eco- Rational people think at the margin.
nomics )
12. 4th (Principles of Eco- People respond to incentives.
nomics )
, WGU - D089 Principles of Economics
Study online at https://quizlet.com/_h5z48a
13. 5th (Principles of Eco- Trade can benefit everyone.
nomics )
14. 6th (Principles of Eco- Markets are a sound method of organizing economic activity.
nomics )
15. 7th (Principles of Eco- Government may be able to improve market outcomes.
nomics )
16. 8th (Principles of Eco- A nation's standard of living depends on its ability to produce.
nomics )
17. 9th (Principles of Eco- Printing too much money causes prices to rise.
nomics )
18. 10th (Principles of Eco- There is short-run tradeoff between inflation and unemployment.
nomics )
19. Economic Systems A system of the production, resource allocation, and distribution of goods
and services within a society or give geographic area.
20. Traditional Economy A economic system that relies on customs, history. and time-honored
beliefs. Guides economic decisions such as production and distribution.
21. Command Economy An economic system in which production, investment, prices, and incomes
are determined centrally by a government.
(Centralized)
22. Market Economy An economic system in which the decisions regarding investment, pro-
duction, and distribution are guided by the price signals created by the
forces of supply and demand
(Decentralized)
, WGU - D089 Principles of Economics
Study online at https://quizlet.com/_h5z48a
23. Mixed Economy An economic system in which both private enterprise and a degree of state
monopoly (usually in public services, defense, infrastructure, and basic
industries) coexist.
24. Positive Economics The study of economics concerned with what is and what will happen if a
course of action is taken or not taken.
25. Normative Economics The study of economics with what is and what will happen if a course of
action is taken or not taken.
26. Economic Models A simplified version of reality that allows people to observe, understand
and make predictions about economic behavior.
27. Economic Indicators A statistic about an economic activity.
28. Circular Flow Model 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.
29. Human Capital The accumulated skills and education of workers.
30. Research and Devel- Term commonly used to describe the activities undertaken by firms and
opment other entities such as individual entrepreneurs to create new or improved
products and processes.
31. Partnership A legal form of business operation between two or more individuals who
share management and profits.
32. Merger Combining two companies into a single larger company
33. Factors of Production Describes the inputs used in the production of goods or services to make
an economic profit.
34. Financial Capital
