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IB Economics - Microeconomics Flashcards | StudBud
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IB Economics - Microeconomics
IB Economics - Microeconomics
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An #ib #microeconomics quiz with some trivia to relieve your brain! #vecchiarelli
Flashcards
70 cards
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Questions
70
Answers
1
Sustainable development is concerned with development which…
Sustains existing growth and consumption patterns
Favours appropriate technology methods of production
Promotes agricultural growth to sustain food production
Meets needs of the present and needs of the future
2
If the prices of factors of production fall...
Demand curve shifts left
Supply curve shifts right
Demand curve shifts right
Supply curve shifts left
3
The price elasticity of supply for a good is greater the longer the time period considered...
True
False
4
A good is said to be non-rivalrous when...
Possible to stop other people from consuming once provided
Impossible to stop others from consuming once it's provided
One person consuming does not prevent another from consuming
It is a private good
5
Inferior goods are...
Products whose demand falls when incomes rise
None of the above
Beef Tenderloin
Products whose supply increases when incomes rise
6
Merit goods may be subsidised by the government because...
Externalities are not included in their prices
Benefit both users and non-users
All answers are correct
The market may under-provide them
7
A situation of market failure is said to exist if...
Third parties are injured and are not compensated for
The government provides merit goods for free
Buyers and sellers pay the true cost of their actions
There are no externalities within an economy
8
Price floors...
Minimum price above the equilibrium price
Maximum price below the equilibrium market price
Result in a surplus
9
What city are the Toronto Raptors from?
Etobicoke
Ontario
Canada
Toronto
10
Look at the Graph... From A to B
Supply increases
Quantity demanded increases
Demand increases
There are fewer suppliers
11
What is Economic Growth?
An increase in real output (over time)
An increase in real GDP
An increase in potential output
All of the options are correct
12
Perfectly elastic supply...
A decrease in price, willing to withhold everything
All of the options are correct
An increase in price, willing to sell all
Sellers are completely responsive to a change in price
13
What is price elasticity of supply?
The willingness of producers to produce more
The willingness of producers to produce less
The flexibility with which suppliers can increase output
14
If price increases and total revenue increases, demand is inelastic...
True
False
15
What was Kanye West's first commercially released ALBUM?
Watch the Throne
Graduation
808s & Heartbreak
The College Dropout
16
The efficient use of a common access resource is the quantity where MSC=MSB...
False
True
17
Which of the following is not a reason for market failure?
Positive/Negative Externality
Overprovision of Merit Goods
Common Access Resources
Lack of Public Goods
18
What does the shaded region on the graph represent?
Consumer Surplus
Excess Demand
Shortage
19
Which rock band had hits including Roxanne, Message in a Bottle and Every Breath You Take?
AC/DC
The Police
Guns N' Roses
Def Leppard
20
What are public goods?
Goods that are of benefit and are provided in a free market
Goods that are harmful and not provided in a free market
Beneficial goods which are not provided in the free market
None of the options are correct
21
This PPC illustrates the ______ facing an economy that _____ only two goods...
Prices; sells
Shortages; produces
Trade-offs; sells
Trade-offs; produces
22
The law of supply suggests...
Price increases, supply increases
Price decreases, supply decreases
Price increases, quantity supplied increases
None of the options are correct
23
A 10% increase in prices causes a 5% decrease in total revenue, demand is perfectly inelastic..
True
False
24
A cap-and-trade program...
Is a type of "green tax"
Assigns a property right to the atmosphere
Assigns a property right to polluting the atmosphere
Is easy to enforce and establish
25
This image is depicting...
Excess Demand
Shortage
Surplus
Absolute Advantage
26
During the 2017-2018 season, the Cleveland Cavaliers acquired...
Joe Hart
Martin Apellado
Marc-Andre Fleury
James LeBron
27
Which is not considered to be an advantage of the pure market economy?
Steady growth, not prone to economic fluctuations and crises
It is a consumer-oriented production system
Tends to generate a high material standard of living
Provides strong work incentives for people
28
Which of the following is not a circumstance for demand to be price elastic?
The good is a necessity
All of the options are correct
Good has strong customer loyalty
There are no close substitutes
29
The Law of Demand states...
A direct relationship between price and quantity demanded
As price increases, quantity demanded decreases
Exponential relationship between price and quantity demanded
As price decreases, quantity demanded decreases
30
Price floors are...
Not disruptive to the rationing function of prices
Illegal
The minimum prices fixed by the government
The maximum prices fixed by the government
31
Unusually cold weather harms a coffee harvest. This will do what in the market of coffee?
Shift the demand curve to the left
Reduce the price of coffee
Shift the supply curve to the left
32
Price ceilings...
Disrupt the rationing function of prices
Often result in shortages
Are a minimum price below equilibrium
33
If equilibrium price of milk is $2.35 and a price ceiling is imposed at $2.45 then…
None of the options are correct
There will be a surplus
There will be a shortage
There will be a depletion of inventories
34
Which of the following are referred to as IB Gods? (more than one correct answer)
Mrs Dempster
Shehzer Naumani
Aly Jiwani
Joseph Pepperoni
35
An increase in the price of good X causes a fall in the demand for good Y
X and Y are substitutes
Good Y is an inferior good
X and Y are complements
All of the above
36
A black market for a product is most likely to arise as a result of...
Setting a maximum price below the equilibrium
The setting of a minimum price above equilibrium
A sudden reduction in supply
A substantial shift of the demand curve to the right
37
Economics is a...
Physical Science
Social Science
Human Science
Psychological Science
38
What is a free enterprise system?
There are no incentives for producers
There is no intervention to prevent market forces
Decisions are not made through the market
There is no price mechanism
39
What will an increase in the market price for televisions do?
Shift the supply curve to the left
Increase the quantity supplied
Decrease the quantity supplied
Shift the supply curve to the right
40
Which of the following would not be included in the study of macroeconomics?
All of the options are correct
Elasticity of Demand
Unemployment
Inflation
41
The fact that the slope of the PPC becomes steeper as we move along the curve indicates what?
The law of increasing opportunity cost
The opportunity cost remains constant
Limited resources in society
Resources are perfectly shiftable between alternative uses
42
What is Positive Economics
Economies which prescribe to the time-happiness approach
Areas of economics that can be proven right or wrong
Economics concerning value-based judgements
Economies in which there is always maximum utility
43
The price of apples decreases, simultaneously your real income increases then...
There is no net effect
Your ability to purchase apples decreases
You buy Adderall, a substitute for apples, instead
Your ability to purchase apples increases
44
What is cross elasticity of demand?
Numerical value represents the relationship between 2 goods
Positive values of XED tell us the goods are complements
Negative values of XED tell us the goods are substitutes
The demand for two products
45
Which of the following is not a determinant of price elasticity of demand?
Percentage/Proportion of income spent on the commodity
Ability to store stock
Availability/closeness of substitutes
Time Span
46
Primary commodities have a high elasticity of supply...
True
False
47
Equilibrium is when demand is equal to supply...
False
True
48
The excludability feature of goods leads to the free rider problem...
True
False
49
Which of the following are
not
non-price determinants of demand?
Changes in Technology
Incomes
Taste/Preferences
Size of the Population
50
What is consumer surplus?
Shortage
There are more consumers than supply available in the market
Excess supply
Extra utility gained by paying lower prices than anticipated
51
What is price elasticity of demand?
The measure of how unwilling consumers are to buy a product
An increase in demand for a product
The measure of how responsive consumers are to price changes
A decrease in demand for a product
52
What does it mean to be producing at point V on this PPC?
Factors of production are being used inefficiently
The PPC is drawn incorrectly
Point V is unattainable for any economy
Neither cars nor schools are a priority within the economy
53
Inelastic demand means
Price increases, demand falls less than proportionately
Price increases, demand stays the same
Price increases, quantity demanded fall is not proportionate
Price increases, demand falls more than proportionately
54
What is Mr Vecchiarelli's first name?
Giovanni
Marco
Antonio
Luca
55
What is Opportunity Cost?
The next best opportunity forgone when making decisions
A point on the production possibilities frontier
When you don't listen to Shehzer… lost opportunity
A combination of two goods that an economy can produce
56
Inferior goods have negative income elasticities of demand...
False
True
57
The elasticity of supply is more elastic when...
There are fewer consumers are in the market
A low degree of resource shiftability
Consumers are relatively responsive to a price change
The producer takes longer to respond to a given price change
58
The car pictured here is a Lamborghini... What is the name of this specific car?
Urus
Murciélago
Huracán
Aventador
59
Which of the following is true?
Necessity goods are products that have low income elasticity
All of the options are correct
For normal goods the income elasticity of demand is positive
Superior goods are products that have high income elasticity
60
Demand for good increases but no change in supply, effects on price and quantity will be
Price decreases, Quantity increases
Price increases, Quantity decreases
Price decreases, Quantity decreases
Price increases, Quantity increases
61
Perfectly elastic demand…
Consumers are completely responsive to price changes
All of the options are correct
There are many buyers and sellers
The elasticity of demand value is infinity
62
A perfectly elastic demand curve is...
Horizontal
Curvilinear
Upward Sloping
Vertical
63
Two Millenium Developmental Goals are...
Reduce Child Mortality & Ensure Environmental Sustainability
Eradicate Extreme Poverty and Malaria
Combat HIV & AIDS
Develop Global Partnerships for Development
64
What are Capital Goods?
Goods which facilitate the production of consumer goods
Cheese
Video Games
Goods which satisfy our wants directly
65
What is MSC?
Marginal Societe Value
Margarine
Marginal Society Cost
Marginal Social Cost
66
On April 12, 2018, Khloé Kardashian had a child. What is the child's name?
True
North
Masoumnia
Peep
67
Large crop yields are associated with large declines in their prices. This suggests that...
These crops are normal goods
These crops are inferior goods
Price elasticity of demand for crops is greater than 1
Price elasticity of demand for farm products is less than 1
68
The price elasticity of demand along a linear demand curve is constant...
True
False
69
Substitutes in consumption are...
Frosting and Cake Mix
A decrease in price of good A will increase good B's demand
Items which are used and purchases together
An increase in price of good A will increase good B's demand
70
If the PPC shifts outwards to Z
1
what does this represent?
Rising prices of the two goods on the PPC model
An increase in potential output
An increase in actual output
A change in producing one good in favour of the other
