WGU D089 Principles of Economics Exam Package Deal Full Solutions Pack

Economics - ANSWER-The study of how humans make decisions in the face of scarcity. Factors of Production - ANSWER-Describes theninputs used in the production of goods or services to make an economic profit. Macroeconomics - ANSWER-A branch of economic dealing with the performance, structure, b...

How are Positive and Normative economics different from each other? - ANSWER-Positive economics clearly states and economic issue, and normative economics provides the value-based solution for the issue. What are factors of production? - ANSWER-The resources the economy has available to produce g...

What is frictional unemployment? - ANSWER-Between jobs, moving towards a better job. (Module 7) What is structural unempoyment? - ANSWER-Job eliminated, accumulated experience is no longer valued in the labor market. What is cyclical unemployment? - ANSWER-Laid off due to a recession How do...

Medium of Exchange - ANSWER-Money is used as a method of payment for goods and services. Store of value - ANSWER-People use money to preserve purchasing power from the present to the future. Unit of account - ANSWER-Money is used to measure and compare the values of goods and services. Stan...

A property owner has 500 acres of flat land and has been approached by two different businesses. One business wants to drill for oil, and the other wants to raise cattle - ANSWER-What to produce? A well-established company has been producing goods and wants to create a new line of production. The...

Why is the concept of scarcity so important in economics? - ANSWER-Resources like time, money, land, and raw materials are in limited supply, and therefore you never have enough resources to meet all needs and desires. production possibilities frontier (PPF) - ANSWER-a diagram that shows the prod...

perfectly competitive market - ANSWER-Primary Goal: is all firms maximize profit Barriers to Entry or Exit: there are no barriers to entry or exist Market Composition: A large number of small firms Types of Goods: All firms produce a homogeneous or identical commodity. Like Agriculture Monop...

Identify and describe the four functions of money. - ANSWER-medium of exchange, a store of value, unit of account and a standard of deferred payment What is included in the M1 measure of money? How does this differ from the M2 measure of money? - ANSWER-M1 is monies that are very liquid such as c...

Supply - ANSWER-A fundamental economic concept that describes the total amount of a specific good or service that is available to consumers Demand - ANSWER-Consumer's willingness and ability to consume a given good. Elasticity - ANSWER-An economics concept that measures responsiveness of one ...

What is the price floor? Based on the information in the table below, when a price floor is set at $4 Price Quantity Demanded (units/month) Quantity Supplied (units/month) $1 125 25 $2 100 50 $3 75 75 $4 50 100 $5 25 125 - ANSWER-A price floor is to keep a price from falling below a certain pr...

Give an example of an implicit cost and an explicit cost and explain. - ANSWER-Explicit Costs: these are payments made to cover the firm's expenses and are sometimes called out-of-pocket payments, Bills, salaries for employees, rent for its office Implicit costs are resources already owned by the ...

Draw a graph of aggregated demand. Make sure to label the axis - ANSWER-Vertical axis is Price and Horizontal Axis is GDP How does the quantity of GDP demanded change as the price level in the economy increases? Illustrate this on your graph - ANSWER-It leads to a lower quantity of spending on do...

Macroeconomics - ANSWER-A branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole Microeconomics - ANSWER-A branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce res...