D089 D 089 Final Exam Latest

D089 / D 089 Final Exam (Latest Update 2025 / 2026) Principles of Economics | Questions and Answers | Grade A | 100% Correct - WGU

Question:

What economic principles govern how people make decisions?

Answer:

• Everyone faces trade-offs
• The cost of something is determined by what you give up to get it.
• Rational people think at the margin
• People respond to incentive.

Question:

On Friday night you decide to study economics instead of visiting with friends. This is an example of which economic principle?

Answer:

Principle 1 - Everyone faces trade-offs

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Question:

My local coffee store discovered that they can increase sales by offering customer loyalty cards where the consumers get a free coffee for every 10 cups they purchase.. This is an example of which economic principle?

Answer:

Principle 4 - People respond to incentives

Question:

What economic principles describe how people interact?

Answer:

• Trade can leave everyone in a better position.
• Markets are a sound method of organizing economic activity.
• Governments can sometimes better market outcomes.

Question:

What economic principles describe how the economy works as a whole?

Answer:

• The standard of living for a nation is determined by its ability to produce

goods and services.

• Printing too much money causes prices to rise.
• Society faces a short-run trade-off between inflation and unemployment.
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