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Foundations of Economics Flashcards | StudBud
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Foundations of Economics
Foundations of Economics
14 terms
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StudBud Administration
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The basics of IB Economics
Flashcards
14 cards
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Practice quiz
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Host live
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Questions
14
Answers
1
Can you produce at a point not on this line?
No
Yes
2
What is Macroeconomics?
Study of command markets (A.K.A. North Korea)
Opinionated statements
Study of individual decision-making units in the economy.
Study of the economy as a whole.
3
Positive statements correspond to Normative economics.
False
True
4
What is the main concept illustrated in a PPC?
Revenue Maximization
Elasticities
Opportunity Cost
Profit Maximization
5
Opportunity cost is the next best alternative foregone when a choice is made to produce a good.
True
False
6
Normative statements...
Don't exist
Relate to mathematics, not Economics
Are opinionated
Can be proven
7
What are the 2 assumptions in economic model-building?
Irrational Ceteris Paribus & Economic Decision Making
Ceteris Paribus & Irrational Economic Decision Making
Ceteris Paribus & Rational Economic Decision Making
There are none.
8
What is an example of a choice made because of scarcity?
A country produces military over food.
A country produces neither military nor food.
A country chooses to produce military and food.
A country produces nothing.
9
What is microeconomics?
Macroeconomics.
Micoreconomics.
Study of the economy as a whole.
Study of individual decision-making units in the economy.
10
What is an overallocation?
Too little resources being used for production of a good.
Too many resources are being used for production of a good.
11
What is scarcity?
Infinite resources for infinite wants.
Infinite resources for finite wants.
Finite resources for infinite wants.
Finite resources for finite wants.
12
What kind of opportunity cost is being listed?
Constant Opportunity Costs
Vanishing Opportunity Costs
No Opportunity Cost
Increasing Opportunity Costs
13
Revenue is a factor of production.
True
False
14
Economics is the study of...
Command markets leading to the best way to be a dictator.
Choices leading to the best possible use of resources.
The stock market and how it works.
Free markets as a result of the invisible hand.
