IB CHAPTER 1

What is the primary focus of economics?

• The study of money and banking
• The study of how resources are allocated to satisfy unlimited needs and wants
• The study of political systems
• The study of historical trade routes

Which of the following is NOT a level of economic analysis?

• Microeconomics
• Macroeconomics
• The global economy
• Socioeconomics

What does microeconomics examine?

• The economy as a whole
• The behaviour of individuals and firms in specific markets
• International trade policies
• Government fiscal policies

Which real-world issue relates to how consumers and producers make choices?

• RWI 1
• RWI 2
• RWI 3
• RWI 4

Which of the following is NOT one of the nine central concepts in IB Economics?

• Scarcity
• Efficiency
• Inflation
• Sustainability

What does the concept of 'interdependence' refer to?

• The reliance on others to achieve economic goals
• The limited availability of resources
• The fairness in income distribution
• The stability of prices over time

Which concept is about perceived fairness?

• Efficiency
• Equity
• Sustainability
• Change

What are 'needs' in economics?

• Desires for luxury goods
• Essential goods and services required for survival
• Financial assets
• Government regulations

Which of the following is a 'want'?

• Clean water
• Shelter
• A luxury car
• Basic healthcare

What are the four factors of production?

• Land, Labour, Capital, Enterprise
• Land, Labour, Money, Technology
• Capital, Labour, Government, Consumers
• Land, Capital, Consumers, Producers