IB Economics 1.1 knowledge quick test

The branch of economics that examines the behaviour of individual decision-making units, consumers and fi rms; is concerned with consumer and fi rm behaviour and how their interactions in markets determine prices in goods markets and resource markets

• Microeconomics

• Macroeconomics

• Development Economics

• International Economics

The branch of economics that examines the economy as a whole by use of aggregates, which are wholes or collections of many individual units, such as the sum of consumer behaviours and the sum of fi rm behaviours, total income and output of the entire economy as well as total employment and the general price level.

• Microeconomics

• Macroeconomics

• Development Economics

• International Economics

__________is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their__________ .

(a)  

(a)   refers to the limited availability of economic resources relative to society’s unlimited demand for goods and services. Thus, economics is the study of how to make the best possible use of limited resources to satisfy unlimited human needs and wants.

Economics is the study of

• Choices

• Chance

• People

• Money

What does the PPC diagram show?

• Opportunity Cost & Trade offs

• Supply and Demand

• Inflation

• Utility

What term refers to government involvement in the workings of markets

• Interference

• Involvement

• Intervention

• International policy

(a)   means ‘other things equal’. Another way of saying this is that all other things are assumed to be constant or unchanging.

GDP is used to measure

• Economic Growth

• Inflation

• Taxation

• Opportunity Cost

(a)   is a quantifiable concept, determined by the ratio of useful output to total input.