D089 gives business students the economic thinking managers need, from how individual markets set prices to how whole economies grow, shrink and trade.
WGU's program guide says the course begins by defining economics and separating microeconomics from macroeconomics. It then covers microeconomics for business and public policy decisions (supply, demand, elasticity, market efficiency, costs of production and market structures) and finishes with macroeconomics: measuring the economy, aggregate supply and demand, the open economy and trade policy.
Students often find the graphs the hardest part. Once you can read a supply and demand diagram confidently, most of the course follows the same logic.
Course at a Glance
| Item | Details |
|---|---|
| University | Western Governors University (WGU) |
| Code | D089 |
| Level | Undergraduate |
| Competency units | 3 (B.S. Accounting standard path) |
| Subject area | Micro and macroeconomics |
| Typical work | Concept and graph-based questions (check your course page for the assessment format) |
What D089 Covers
| Competency (summarized) | Key topics |
|---|---|
| Explain fundamental principles of micro and macroeconomics | Scarcity, opportunity cost, incentives, the difference between the two branches |
| Explain microeconomic concepts used in business and policy | Supply, demand, elasticity, market efficiency, production costs, market structures |
| Explain macroeconomic concepts used in business and policy | GDP, inflation, unemployment, aggregate supply and demand, open economy, trade policy |
Key Concepts Explained
Supply, Demand and Equilibrium
Demand slopes down: as price rises, people buy less. Supply slopes up: higher prices encourage more production. Equilibrium is where the two meet. A shift in either curve, caused by something other than price, moves the equilibrium.
Example: A frost destroys part of the orange harvest. Supply shifts left, so at the old price there is a shortage. The price rises until quantity demanded falls to match the smaller supply. New equilibrium: higher price, lower quantity.
Price Elasticity of Demand
Elasticity measures how strongly quantity responds to price. It equals the percentage change in quantity demanded divided by the percentage change in price. Above 1 (in absolute terms) is elastic; below 1 is inelastic.
Example: A cinema raises ticket prices by 10% and attendance falls by 20%. Elasticity is 20 / 10 = 2, so demand is elastic and revenue falls. A pharmacy raising the price of a prescription drug by 10% might see only a 2% fall (elasticity 0.2), so revenue rises.
Market Structures
| Structure | Firms | Pricing power |
|---|---|---|
| Perfect competition | Many, identical products | None |
| Monopolistic competition | Many, differentiated | Some |
| Oligopoly | A few large firms | Significant, interdependent |
| Monopoly | One | High |
Macroeconomics for Managers
Macroeconomics explains the conditions every business operates in. GDP measures total output; inflation measures rising prices; unemployment measures people seeking work who cannot find it.
The aggregate demand and aggregate supply model works like a market diagram for the whole economy. If aggregate demand rises faster than the economy can produce, prices rise; if it falls, output and employment fall.
Policy tools matter for business planning. Fiscal policy uses government spending and taxes; monetary policy, run by the Federal Reserve in the U.S., adjusts interest rates and the money supply. Higher interest rates raise borrowing costs for firms and consumers, cooling demand.
Example: A furniture retailer reads that interest rates are rising. Customers who buy on credit may delay purchases, so the retailer trims inventory orders and promotes lower-priced ranges, a direct business response to macroeconomic policy.
Trade and the Open Economy
Countries gain from trade through comparative advantage: producing what they give up least to make. Tariffs and quotas protect some domestic producers but usually raise prices for consumers and can invite retaliation.
Typical Tasks and How to Approach Them
| Task type | What it tests | How to approach it |
|---|---|---|
| Graph questions | Curve shifts and equilibrium | Decide which curve shifts and in which direction before drawing |
| Elasticity calculations | Formula and interpretation | Calculate, classify and state the effect on revenue |
| Policy scenarios | Linking policy to outcomes | Trace the chain from policy to demand to prices and output |
| Market structure questions | Recognizing features | Count firms, check product differences and entry barriers |
Where Students Get Stuck
- Movement versus shift. A price change moves along a curve; other factors shift the whole curve.
- Elasticity signs. Use absolute values when classifying elastic or inelastic.
- Nominal versus real. Real GDP removes the effect of inflation; compare real figures over time.
- Fiscal versus monetary. Fiscal is government budgets; monetary is central bank interest rates.
Study Tips for D089
- Sketch supply and demand for every news story you read about prices.
- Make a one-page sheet of formulas and definitions.
- Explain each concept aloud using a business you know.
- Practice many short questions rather than reading passively.
How We Help with D089
Tell us which topics are difficult and send practice material or task instructions. An economics tutor can explain concepts, work through example questions and check your understanding.
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Frequently Asked Questions
Fundamental economic principles, microeconomics for business and policy decisions, and macroeconomics including aggregate supply and demand, the open economy and trade policy.
Both. It starts with the difference between them, covers microeconomics, then finishes with macroeconomics.
The percentage change in quantity demanded divided by the percentage change in price; it shows how sensitive buyers are to price.
Basic algebra and percentages are enough for most topics. Graph reading matters more than advanced maths.
WGU uses objective assessments, performance assessments or both. Check your course page for the current format.
Yes, with explanations, practice questions and feedback. We do not take assessments for students.