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IBDP Foundations of Economics Flashcards | StudBud
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IBDP Foundations of Economics
IBDP Foundations of Economics
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The basics of IB Economics
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
What is Macroeconomics?
Study of the economy as a whole.
Opinionated statements
Study of individual decision-making units in the economy.
Study of command markets (A.K.A. North Korea)
2
Which one [below] is not a central theme of IB Economics?
Distinction between economic growth & economic development
Extent to which governments should implement martial law
Extent to which governments should intervene
Threat to sustainability via patterns in resource allocation
3
What is microeconomics?
Study of the economy as a whole.
Macroeconomics.
Study of individual decision-making units in the economy.
Micoreconomics.
4
Revenue is a factor of production.
True
False
5
What is the main concept illustrated in a PPC?
Revenue Maximization
Opportunity Cost
Elasticities
Profit Maximization
6
Can you produce at a point not on this line?
No
Yes
7
Opportunity cost is the next best alternative foregone when a choice is made to produce a good.
False
True
8
What is an example of a choice made because of scarcity?
A country produces military over food.
A country chooses to produce military and food.
A country produces nothing.
A country produces neither military nor food.
9
What is scarcity?
Infinite resources for finite wants.
Finite resources for finite wants.
Finite resources for infinite wants.
Infinite resources for infinite wants.
10
Normative statements...
Don't exist
Can be proven
Relate to mathematics, not Economics
Are opinionated
11
Economics is the study of...
Free markets as a result of the invisible hand.
Command markets leading to the best way to be a dictator.
The stock market and how it works.
Choices leading to the best possible use of resources.
12
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.
13
Positive statements correspond to Normative economics.
False
True
14
What kind of opportunity cost is being listed?
Constant Opportunity Costs
Increasing Opportunity Costs
No Opportunity Cost
Vanishing Opportunity Costs
15
What are the 2 assumptions in economic model-building?
Ceteris Paribus & Rational Economic Decision Making
Ceteris Paribus & Irrational Economic Decision Making
Irrational Ceteris Paribus & Economic Decision Making
There are none.
