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IB Economics definitions and theory (18 SL & 7 HL questions) Flashcards | StudBud
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IB Economics definitions and theory (18 SL & 7 HL questions)
IB Economics definitions and theory (18 SL & 7 HL questions)
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1
What is the difference between growth and development?
Development increases average income and growth doesn't
Development reduces poverty and growth never does.
Development makes majority better off and growth doesn't
Development builds up infrastructure and growth doesn't
2
Which of the following is NOT a form of protectionism?
Subsidy
Floating currency
Tariff
Quota
3
Which of the following is NOT an indicator of development?
GDP per capita
The gini co-efficient
Literacy
Inflation
4
What type of unemployment is NOT inefficient?
Frictional unemployment
Structural unemployment
Disguised unemployment
Cyclical unemployment
5
A normal good is defined as one where...
Demand and revenue increase as prices fall
Demand increases as prices fall
Demand increases in a greater proportion than income
Demand increases as income increases
6
Which of the following in NOT a millennium development goal?
Providing electricity and internet to all
Providing primary education to all
Controlling malaria and HIV/AIDS
Reducing absolute poverty
7
HL - The kinked demand curve of oligopoly explains...
How competition in an oligopoly will create a monopoly
How monopolistic competition becomes an oligopoly.
How firms collude in an oligopoly market
Why prices remain constant in oligopoly markets
8
HL - How is the long run defined in economic theory?
A period of more than two quarters
When all factors of production vary.
When everyone is dead
A period of more than five years
9
Which of the following is an interventionist supply side employment policy?
Retraining the unemployed
Reducing the minimum wage
Increasing the money supply
Reducing social security, unemployment benefit
10
Which ONE of the following is correct for Keynesian theory?
Cyclical unemployment is voluntary
The macro-economy shifts towards a long run equilibrium
All inflation is the result of increases in the money supply
Aggregate demand shifts due to non-economic factors
11
HL - Which of the following is NOT a condition for price discrimination?
That groups of consumers can be separated
That the firm dominates the market
That the firm has some producer sovereignty
That consumers have differing elasticities
12
Which of the following is an example of fiscal policy?
A reduction in trade union power
A reduction in income tax
An increase in the money supply
A reduction in interest rates
13
A public good is defined as...
Non-rivalrous and non-excluadable
Non-profitable and non-competition
One provided by government
A free good
14
HL - What is absolute advantage?
When one firm has lower costs than another
When trade will never be profitable for one country
When a country can produce using less resources than another
When an MNC enters competition in an LDC
15
What is inflation?
A sustained increase in the price level
An increase in prices
A change in the CPI
A fall in the value of the currency
16
The difference between a free trade area (FTA) and common market is that...
In an FTA members can set their own tariffs
In an FTA there are no tariffs with the rest of the world
In a common market there is a single currency
In a common market labour can move freely between members
17
HL - When does a firm reach the point of shut down?
When prices fall below average (total) cost
When prices fall to below the average variable cost
When prices fall below average revenue
When prices fall below average fixed cost
18
A managed exchange rate is...
One that is controlled to keep a trade balance
One controlled by market forces at all times
One kept constant by intervention at all times
One which is controlled by invention in the market at times
19
HL - What is a non-collusive oligopoly?
When many firms play games in a market
When a few firms create a cartel
When a few firms avoid direct competition, dominating market
When a few firms dominate a market and have price agreement
20
Which of the following is NOT a possible disadvantage of FDI in LDCs
A widening distribution of income in the LDC
Increased pollution of the environment
An increase in structural unemployment in the LDC
Child labour
21
The balance of payments consists of the current account, capital account and ...
Trade account
Cash account
Invisible account
Financial account
22
If a country moves from inside its PPC to the boundary, it has experienced an...
A new source of raw materials in the country
Increase in potential growth
An increase in real growth
An increase in the quality of labour and capital
23
The difference between direct and indirect tax is...
One is on sales and the other on income
One is on income and the other on wealth
One is on sales and the other on production
One is on services and the other on goods
24
HL - How do diminishing marginal returns and diminishing returns to scale differ?
The first creates loss and the second profit
The first is short run and the second long run
The first is micro-economics and the second macro-economics
First affects monopoly and the second perfect competition
25
What does NGO stand for?
Non-Government Organisation
Natural Global Organisation
New Government Organisation
Neo-Global Organisation
