Which is a fundamental characteristic of a market economy?

Prices are determined by the forces of supply and demand

The opportunity cost of something you decide to get is:

The highest valued alternative you give up to get it

Economics is best defined as the study of how people, businesses, governments, and societies:

Make choices to cope with scarcity

The most basic difference between socialism and capitalism concerns the issue of:

Private versus public ownership of industry

The main features of a capitalist economic system are:

Private ownership and the profit motive

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Macro Economics IB MYP I&S Grade 9

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Questions 15

Answers

1
Which is a fundamental characteristic of a market economy?
Prices are determined by the forces of supply and demand
Consumer market tastes are shaped by product advertising
Traditional methods of production are used
Governmental economic plans followed to meet market demands
2
A computer is an example of which type of resource?
Human capital
Labour
Physical capital
None of the above
3
The opportunity cost of something you decide to get is:
The lowest valued alternative you give up to get it
All possible alternatives that you give up to get it
The highest valued alternative you give up to get it
The amount of money you pay to get it
4
The most fundamental economic problem is:
Scarcity
Security
Health
When countries buy more goods from than sell to foreigners
5
Ranked activity choices: library, gym, breakfast, sleep. If library, opportunity cost is:
Not clear because not enough information is given
Zero because you do not have to pay money to use the library
Gym, breakfast, sleeping
Working out at the gym
6
Economics is best defined as the study of how people, businesses, governments, and societies:
Choose abundance overscarcity
Use their infinite resources
Attain wealth
Make choices to cope with scarcity
7
Which of the following is a resource?
All of the above
Labour
Land
Entrepreneurship
8
The most basic difference between socialism and capitalism concerns the issue of:
Dealing with inflation
Private versus public ownership of industry
The introductionof modern technology
Support for public education
9
The term used to emphasise that making choices in the face of scarcity involves a cost is:
Opportunity cost
Substitution cost
Accounting cost
Utility cost
10
Trees are an example of which type of factor of production?
Land
Labour
None of the above
Physical capital
11
To deal with the problem scarcity, societies establish which of the following?
Hierarchies
Governments
Economic systems
Private businesses
12
In economics, scarcity affects:
Both the poor and the rich
The rich but not the poor
The poor but not the rich
Neither the poor nor the rich
13
The main features of a capitalist economic system are:
State ownership of basic industries
Central planning by government and full employment
Powerful labourunions and fixed prices
Private ownership and the profit motive
14
In economic terms, what are land, labour, capital and entrepreneurship?
Opportunity costs
Trade-offs
Very valuable
Resources
15
The process by which resources are transformed into useful forms is:
Capitalisation
Production
Consumption
Allocation

Macro Economics IB MYP I&S Grade 9 Flashcards | StudBud