IB Economics Introduction Quick Quiz-How do Economists think?

Multiple Choice

In China, 40% of the economy is based in state-run industries while 60% is based on the private sectors where producers and consumers make production decisions. What type of economy does this reflect?

• Mixed

• Command

• Traditional

• Market

Multiple Choice

Consider the statement: ‘The increase in money supply will push the prices downwards’. This is a statement of a:

• microeconomist.
• both resource economist and microeconomist.
• macroeconomist.
• resource economist.

Multiple Choice

An economic model:

• cannot be rejected.
• cannot be tested.
• always yields accurate predictions.
• is valid if the evidence is consistent with the predictions.

Multiple Choice

The statement: John buys more of good X as his income increases, ceteris paribus, means:

• John’s income is being held constant.
• John’s purchases of good X are being held constant.
• John’s income and purchases of this good are being held constant.
• John’s income is the only influence that is being allowed to change.

Open Ended

What should we be thinking about/mindful of when making predictions in Economics?

Multiple Choice

Which of the following is a statement of positive economics?

• Government control of rent is a fair way to help poor people afford housing.
• Government control of rent keeps landlords from charging too much rent.
• Government control of rent decreases the number of new apartments constructed.
• Government control of rent is an injustice.

Multiple Choice

Positive economics is a/an:

• reflection of individual or collective values.
• statement dealing with the facts.
• statement about normative facts.
• analysis of what ought to be.

Multiple Choice

Normative economics deals with _____ and positive economics deals with _____.

• opinions, facts
• fiction, fact
• microeconomics, macroeconomics
• negative aspects, positive aspects

Multiple Choice

It is not fair to increase the federal minimum wage because it causes an increase in unemployment among teenagers. This is a:

• statement of positive economics.
• statement of normative economics.
• testable value judgement.
• fallacy of composition.

Multiple Choice

'Ceteris paribus' means _________

• Other things being changed

• Other things being affected

• Other things remaining constant

• Other remaining parallel