WGU D089 Principles Of Economics Objective Assessment Final Exam
WGU D089 PRINCIPLES OF ECONOMICS OBJECTIVE ASSESSMENT
FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE 200 QUESTIONS
AND CORRECT ANSWERS| ALREADY GRADED A+
Differences between the Traditional and Market Economy - ANSWER-Traditional is based on
hunting, fishing, gathering, and agriculture they barter and trade goods and services in place of
currency, are centered around tribes or families, exist in a hunter-gather and nomadic society,
and produce what is needed. Market is decentralized, production is owned and operated by
private individuals or groups, goods and services are supplied on demand, economic decisions
are determined by market forces, and people and businesses have the right to commercialize
property freely.
Traditional Economic System - ANSWER-Economic system in which decisions are based on
customs and centered on family
5 key characteristics of a Traditional Economy - ANSWER-Centered around families and tribes,
exists in a hunter-gather and nomadic society, trade is heavily dependent on bartering rather
than money, produces what is needed, and eventually changes from purely trad to the use of
some type of currency
Advantages to a Traditional Economy - ANSWER-With little competition or friction among
members of society, People's roles and contributions are well understood, and more sustainable
than a technology-based economy.
Disadvantages of traditional economy - ANSWER-Exposed to environmental changes and
weather patterns, and vulnerable to market or command economies, which consume and
deplete the resources of traditional economies.
Benefits of using a traditional economic system - ANSWER-Everyone knows their roles in the
market.
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, WGU D089 Principles Of Economics Objective Assessment Final Exam
Command Economic System - ANSWER-Centralized, All economic decisions are made by a
central government. The government owns and controls vital services and industries.
Theoretically can plan, produce, and distribute enough resources yet in reality they tend to fail
due to inadequate incentives, corruption, and inefficiencies.
5 Fundamental characteristics of a Command Economy - ANSWER-All economic activity is
planned and controlled by government power, government decides how to use and distribute
nation's capital, and natural and labor resources, Controls the priorities for how goods and
services are produced and distributed, Domestic competition is overpowered, Businesses
require to follow specific hiring and production targets.
advantages of command economy - ANSWER-Type of system, goods, services and resources are
deployed without concern for environmental or regulatory issues, and government can
transform the entire society to fit constraints.
Disadvantages of Command Economy - ANSWER-Black market for economies, rationing
commonly occurs, and people are discouraged from innovating
Characteristic associated with a Command Economy - ANSWER-Competition is limited
Market Economic System - ANSWER-Decentralized, production is owned and operated by
private groups and individuals. Goods and services are supplied on demand, Consumers
influence how much products and services are made available, Creates competition and
innovation
5 Characteristics of a Market Economy - ANSWER-private enterprise, private property, profit,
competition, freedom of choice
advantages of market economy - ANSWER-Advantages: economic efficiency (responds quickly to
change); economic freedom (high level of personal choice); economic growth (competition
leads to innovation); wide variety of goods and services to meet consumer wants
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, WGU D089 Principles Of Economics Objective Assessment Final Exam
disadvantages of market economy - ANSWER-1. Doesn't provide for everyone or enough basic
goods and services
2. High degree of uncertainty
What is the advantage of a Market Economy - ANSWER-Innovation is encouraged and rewarded
Two disadvantages of a Command Economy - ANSWER-Black market economies in response for
difficult access to goods and services, Rationing commonly occurs, and people are discouraged
from innovating.
What are the three fundamental questions every economy must answer? Give an example of a
"What" question. - ANSWER-What to produce, how it will be produced, and from whom the
goods or services are produced. What to produce (Oil vs. Cattle), How to (Current vs. New
technology), From who to produce
What do economists mean when they say that people "think at the margin"? - ANSWER-
Thinking about the next step or an additional action means for a person.
According to the 10 Principles of Economics, what determines a nation's standard of living? -
ANSWER-Principle 8: Nations ability to produce goods and services.
Using the 10 Principles of Economics, explain why trade is beneficial? - ANSWER-Principle 5:
Trade leaves everyone in a better position. Allows people to concentrate on what they do best
and exchange their ability with others.
How does printing money impact prices? - ANSWER-Printing to much money can cause prices to
rise which causes inflation.
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, WGU D089 Principles Of Economics Objective Assessment Final Exam
Economics - ANSWER-Study of how humans make decisions in the face of scarcity.
Factors of production - ANSWER-Describes the inputs used in the production of goods or
services to make an economic profit.
Macroeconomics - ANSWER-Branch of economics dealing with the performance, structure,
behavior, and decision-making of an economy as a whole. Large economic think national or
global
Microeconomics - ANSWER-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. think small like people and businesses.
Scarcity - ANSWER-Basic economic problems, the gap between limited, scarce, resources, and
theoretically limitless wants.
What to Produce: - ANSWER-Using the economy's scarce resources to produce one thing
requires giving up another. Every society must decide what it will produce with its scarce
resources.
opportunity cost - ANSWER-The next best alternative that is given up when a choice is made.
How to Produce it: - ANSWER-There are all sorts of choices to be made in determining how
goods and services should be produced.
From whom to produce it: - ANSWER-If a good or service is produced, a decision must be made
about who will get it. The decision if one person, or group or service.
4|Page
WGU D089 PRINCIPLES OF ECONOMICS OBJECTIVE ASSESSMENT
FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE 200 QUESTIONS
AND CORRECT ANSWERS| ALREADY GRADED A+
Differences between the Traditional and Market Economy - ANSWER-Traditional is based on
hunting, fishing, gathering, and agriculture they barter and trade goods and services in place of
currency, are centered around tribes or families, exist in a hunter-gather and nomadic society,
and produce what is needed. Market is decentralized, production is owned and operated by
private individuals or groups, goods and services are supplied on demand, economic decisions
are determined by market forces, and people and businesses have the right to commercialize
property freely.
Traditional Economic System - ANSWER-Economic system in which decisions are based on
customs and centered on family
5 key characteristics of a Traditional Economy - ANSWER-Centered around families and tribes,
exists in a hunter-gather and nomadic society, trade is heavily dependent on bartering rather
than money, produces what is needed, and eventually changes from purely trad to the use of
some type of currency
Advantages to a Traditional Economy - ANSWER-With little competition or friction among
members of society, People's roles and contributions are well understood, and more sustainable
than a technology-based economy.
Disadvantages of traditional economy - ANSWER-Exposed to environmental changes and
weather patterns, and vulnerable to market or command economies, which consume and
deplete the resources of traditional economies.
Benefits of using a traditional economic system - ANSWER-Everyone knows their roles in the
market.
1|Page
, WGU D089 Principles Of Economics Objective Assessment Final Exam
Command Economic System - ANSWER-Centralized, All economic decisions are made by a
central government. The government owns and controls vital services and industries.
Theoretically can plan, produce, and distribute enough resources yet in reality they tend to fail
due to inadequate incentives, corruption, and inefficiencies.
5 Fundamental characteristics of a Command Economy - ANSWER-All economic activity is
planned and controlled by government power, government decides how to use and distribute
nation's capital, and natural and labor resources, Controls the priorities for how goods and
services are produced and distributed, Domestic competition is overpowered, Businesses
require to follow specific hiring and production targets.
advantages of command economy - ANSWER-Type of system, goods, services and resources are
deployed without concern for environmental or regulatory issues, and government can
transform the entire society to fit constraints.
Disadvantages of Command Economy - ANSWER-Black market for economies, rationing
commonly occurs, and people are discouraged from innovating
Characteristic associated with a Command Economy - ANSWER-Competition is limited
Market Economic System - ANSWER-Decentralized, production is owned and operated by
private groups and individuals. Goods and services are supplied on demand, Consumers
influence how much products and services are made available, Creates competition and
innovation
5 Characteristics of a Market Economy - ANSWER-private enterprise, private property, profit,
competition, freedom of choice
advantages of market economy - ANSWER-Advantages: economic efficiency (responds quickly to
change); economic freedom (high level of personal choice); economic growth (competition
leads to innovation); wide variety of goods and services to meet consumer wants
2|Page
, WGU D089 Principles Of Economics Objective Assessment Final Exam
disadvantages of market economy - ANSWER-1. Doesn't provide for everyone or enough basic
goods and services
2. High degree of uncertainty
What is the advantage of a Market Economy - ANSWER-Innovation is encouraged and rewarded
Two disadvantages of a Command Economy - ANSWER-Black market economies in response for
difficult access to goods and services, Rationing commonly occurs, and people are discouraged
from innovating.
What are the three fundamental questions every economy must answer? Give an example of a
"What" question. - ANSWER-What to produce, how it will be produced, and from whom the
goods or services are produced. What to produce (Oil vs. Cattle), How to (Current vs. New
technology), From who to produce
What do economists mean when they say that people "think at the margin"? - ANSWER-
Thinking about the next step or an additional action means for a person.
According to the 10 Principles of Economics, what determines a nation's standard of living? -
ANSWER-Principle 8: Nations ability to produce goods and services.
Using the 10 Principles of Economics, explain why trade is beneficial? - ANSWER-Principle 5:
Trade leaves everyone in a better position. Allows people to concentrate on what they do best
and exchange their ability with others.
How does printing money impact prices? - ANSWER-Printing to much money can cause prices to
rise which causes inflation.
3|Page
, WGU D089 Principles Of Economics Objective Assessment Final Exam
Economics - ANSWER-Study of how humans make decisions in the face of scarcity.
Factors of production - ANSWER-Describes the inputs used in the production of goods or
services to make an economic profit.
Macroeconomics - ANSWER-Branch of economics dealing with the performance, structure,
behavior, and decision-making of an economy as a whole. Large economic think national or
global
Microeconomics - ANSWER-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. think small like people and businesses.
Scarcity - ANSWER-Basic economic problems, the gap between limited, scarce, resources, and
theoretically limitless wants.
What to Produce: - ANSWER-Using the economy's scarce resources to produce one thing
requires giving up another. Every society must decide what it will produce with its scarce
resources.
opportunity cost - ANSWER-The next best alternative that is given up when a choice is made.
How to Produce it: - ANSWER-There are all sorts of choices to be made in determining how
goods and services should be produced.
From whom to produce it: - ANSWER-If a good or service is produced, a decision must be made
about who will get it. The decision if one person, or group or service.
4|Page
