IB Econ Intro Quiz

The study of people living in society and how they interact with each other is called ...

• Econometrics

• Social Science

• Entrepreneurship

• Scarcity

The area of economics that studies the behaviour of individual economic agents, such as households, firms, industries and the government, and how they make economic decisions, is...

• Macroeconomics

• Microeconomics

• Econometrics

• Welfare Economics

The second best alternative is referred to as...

• Potential Growth

• Capital Goods

• Factors of Production

• Opportunity Cost

Goods that are produced with scarce resources, and therefore have an opportunity cost and a price, are called ...

• Free Goods

• Consumer Goods

• Capital Goods

• Economic Goods

Which of the following is NOT one of the three questions every society attempts to answer?

• What to Produce?

• How to Produce?

• Why to Produce?

• For Whom to Produce?

Ways in which societies answer the three basic economic questions to allocate their scarce resources, goods and services

• Econometrics

• Market Systems

• Economic System

• Microeconomics

A system where all economic decisions are made by the government and all resources are owned by the state.

• Command Economy

• Free Market Economy

• Mixed Economy

• Fascism

Goods that have negative effects when consumed and cause negative externalities of consumption are called...

• Merit Goods

• Demerit Goods

• Undeveloped Goods

• Irrational Goods

The curve that shows the maximum combination of goods a country can produce in a specific period of time, using all of its resources and the available technology in the most efficient way.

• Process of Production Curve

• Production Elements Curve

• Production Possibilities Curve

• Elemental Production Frontier

When the maximum amount of output that an economy can produce when all of its resources are being used efficiently increases from one period to the next...

• Potential Output

• Real Growth

• Actual Output

• Probable Output