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IB Economics
IB Economics
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Exam revision for Foundations, Microeconomics, Macroeconomics and International Economics
Flashcards
28 cards
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Questions
28
Answers
1
What type of unemployment exists when people are in between jobs?
Seasonal
Frictional
Structural
Cyclical
2
Deflation sees the average price level of the economy go in what direction?
Up
Up and then down
Left
Down
3
What are the components of monetary policy to reduce inflation?
Increase interest rates, reduce the money supply
Increase goverment spending, reduce the money supply
Increase interest rates, reduce taxes
Decrease interest rates, add to the money supply
4
A quota puts a limit on what in the economy?
Trade
Exports
Production
Imports
5
Which is not a type of unemployment?
Frictional
Seasonal
Functional
Structural
6
A decrease in the rate of inflation is...
Deflation
Explosion
Disinflation
No Inflation
7
Who receives the money from the tariffs?
Local producers
The government
Consumers
Donald Trump
8
Unemployment is what?
People unable and unwilling to work without a job
People willing and able to work but can't find jobs
People able but unwilling to work without a job
People working but not enjoying their jobs
9
What are the components of fiscal policy to reduce inflation?
Increases taxes, lower the money supply
Decrease taxes, increase interest rates
Decrease taxes, increase government spending
Increase taxes, lower government spending
10
What term is used to describe inflation caused by increasing AD in the economy?
Cost-pull inflation
Demand-push inflation
Cost-push inflation
Demand-pull inflation
11
What are the components of aggregate demand?
C×I×G×(X-M)
C-I-G-(X-M)
Land, labour, capital, enterprise
C+I+G+(X-M)
12
When people work less than full time or don't have jobs to suit their strengths, what exists?
Hidden unemployment
Underemployment
Inemployment
Disgruntled workers
13
A subsidy involves what entity giving which entity money to help increase production?
Foreign businesses to local businesses
Local businesses to the government
Government to local businesses
Government to foreign businesses
14
What type of trade involves no fee payed between countries?
Bonus trade
Free trade
No tax trade
Cheap trade
15
What type of unemployment occurs when there is a permanent fall in demand for a type of labour?
Cyclical
Frictional
Structural
Seasonal
16
What typically occurs after a peak/boom on the business cycle?
Depression
Trough/slump
Recession
Recovery
17
In a boom, what would you expect to be low?
Unemployment
Inflation
Supply
Aggregate demand
18
What is the function of the WTO?
To monitor international trade, administer trade agreements
To monitor levels of tax across different countries
To set strict laws regarding international trade
A military group that will defend any free trade supporters
19
What term is used to describe an increase in production costs in an economy?
Demand-push inflation
Cost-push inflation
Cost-pull inflation
Demand-pull inflation
20
In a recession, what would you expect to be low?
Unemployment
Inflation
Aggregate demand
None of the above
21
When people lose jobs due to a fall in demand for labour, what type of unemployment is this?
Cyclical
Seasonal
Structural
Frictional
22
Supply side policies aim to increase the quality or quantity of what to grow potential output?
Factors of production
Components of AD
Monetary policy
Employment
23
Inflation can be defined as...
A balloon getting bigger
An increase in aggregate demand
Firms increase prices to match rising production costs
A general rise in price level over time
24
What is a benefit of protectionism?
Lowers prices of products
Supports foreign owned businesses
Protect local jobs and industries
Increases efficiency in the market
25
What is not an administrative barrier to prevent imports?
Protectional terminals
Voluntary export restraints
Health, safety, environmental standards
Embargoes
26
What does WTO stand for?
Wet Towel Organisation
World Tax Office
World Trade Organisation
World Trade Office
27
What is the name given for a tax on imported goods?
Import tax
Trade tax
Subsidy
Tariff
28
What is a generally acceptable rate of inflation?
2-3%
20%-30%
4-5%
1-2%
