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