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