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Foundations of Economics Flashcards | StudBud
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Foundations of Economics
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
Opportunity cost is the next best alternative foregone when a choice is made to produce a good.
False
True
2
What is an example of a choice made because of scarcity?
A country chooses to produce military and food.
A country produces nothing.
A country produces neither military nor food.
A country produces military over food.
3
What is Macroeconomics?
Study of the economy as a whole.
Opinionated statements
Study of command markets (A.K.A. North Korea)
Study of individual decision-making units in the economy.
4
What kind of opportunity cost is being listed?
Increasing Opportunity Costs
No Opportunity Cost
Vanishing Opportunity Costs
Constant Opportunity Costs
5
What are the 2 assumptions in economic model-building?
Ceteris Paribus & Irrational Economic Decision Making
Irrational Ceteris Paribus & Economic Decision Making
Ceteris Paribus & Rational Economic Decision Making
There are none.
6
Can you produce at a point not on this line?
No
Yes
7
What is microeconomics?
Micoreconomics.
Study of individual decision-making units in the economy.
Study of the economy as a whole.
Macroeconomics.
8
Revenue is a factor of production.
True
False
9
Positive statements correspond to Normative economics.
True
False
10
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
11
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.
12
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.
13
Normative statements...
Are opinionated
Don't exist
Can be proven
Relate to mathematics, not Economics
14
What is the main concept illustrated in a PPC?
Profit Maximization
Revenue Maximization
Opportunity Cost
Elasticities
15
What is scarcity?
Finite resources for infinite wants.
Infinite resources for finite wants.
Finite resources for finite wants.
Infinite resources for infinite wants.
