wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

IB Economics Review 2022

Total questions: 158

Worksheet time: 2hrs 7mins

Name
Class
Date
1.

What is short run?

a)

The short run is when at least one input is fixed while others are variable

b)

The short run is a concept that states that you will be able to change your plans

c)

The short run is when you can change capital and labour and any factor of production

2.

Salary given to permanent staff is an example of which kind of cost

a)

fixed cost

b)

variable cost

3.

Opportunity costs are

a)

the loss of potential gain from other alternatives when one alternative is chosen

b)

marginal costs when average costs are minimized

c)

what accountants consider as costs

d)

explicit costs

4.

Types of cost in the curve are

a)

Total, variable and fixed

b)

Average and marginal

5.

Marginal costs is

a)

the cost added by producing one additional unit

b)

the change in revenue added by producing one additional unit

c)

the additional cost

6.

The MC curve cuts AC at its

a)

highest point

b)

minimum point

7.

The shape of AFC is

a)

rectangular hyperbole

b)

S shaped

8.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
9.
If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?
a)
Increase
b)
Decrease
c)
No change
10.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
11.
Demand-Pull inflation can be describes as too many _________ chasing too few __________
a)
jobs, workers
b)
consumers, producers
c)
dollars, goods
12.
What 2 types of inflation are there?
a)
demand pull and cost push
b)
demand pull and supply glut
c)
supply glut and demand side
d)
supply inflation and demand inflation
13.
What the definition of deflation? 
a)
decrease in the average price of goods and services
b)
occurs when the price of goods and services rise
c)
increase in prices
d)
I don't know
14.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in consumption
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply
15.
Which of the following groups suffer from high inflation
a)
Borrowers
b)
Lenders
c)
Taxpayers
d)
Property Investors
16.
GDP that is adjusted for inflation
a)
real GDP
b)
nominal GDP
c)
price level
d)
net national product
17.
If aggregate demand rises faster than producers can supply goods services
a)
demand-pull inflation
b)
cost-push inflation
c)
inflation
18.
What causes cost push inflation
a)
An increase in demand for goods and services
b)
An increase in supply
c)
A rise in production costs passed on to consumers
d)
A fall in the price of imports
19.

Exchange rate depreciation puts..

a)

Upward pressure on inflation

b)

Downward pressure on inflation

20.

A decrease of inflation rates is called

a)

Deflation

b)

Disinflation

21.

You can represent cost-push inflation in a diagram through...

a)

An inward shift of SRAS

b)

An outward shift of SRAS

c)

An inward shift of AD

d)

An outward shift of AD

22.

You can represent demand-pull inflation in a diagram through...

a)

An inward shift of SRAS

b)

An outward shift of AD

c)

An outward shift of SRAS

d)

An inward shift of AD

23.

Inflation affects... (multi-select)

a)

purchasing power

b)

net exports

c)

savings

d)

uncertainty

e)

government spending

24.

What is an advantage of a floating exchange rate?

a)

There is no advantadge

b)

Interest rates are free to be employed to domestic goals

c)

Reduced speculation from foreign investors

d)

High consumer and business confidence

25.

Which of the following is not a type of exchange rate?

a)

Fixed Exchange Rates

b)

Floating Exchange Rates

c)

Secure Exchange Rates

d)

Managed Exchange Rates

26.

Which of these only has an indirect effect on exchange rates?

a)

Higher domestic demand

b)

Selling of foreign currency by private agents

c)

Central banking selling foreign reserves

27.

A depreciation of a country's currency means for this country's residents that imported goods are

a)

Cheaper

b)

More expensive

28.

An appreciation of a country's currency means that for foreigners this country's goods are

a)

Cheaper

b)

More expensive

29.

The impact of a country's exchange rate appreciation in its current account balance is

a)

Negative

b)

Positive

30.

The impact of a country's exchange rate depreciation in its current account balance is

a)

Negative

b)

Positive

31.

What does the use of interest rates for domestic goals means

a)

That the Central Bank can use it for affecting reserves of foreign assets

b)

That the Central Bank can use it for affecting unemployment and inflation

c)

That the Government can use it for spending more

32.

An increase of a country's interest rates should

a)

Attract more capital flows

b)

Lead to capital outflows

33.

When a country is receiving more capital flows, this puts a pressure on exchange rates to

a)

Depreciate

b)

Appreciate

34.

Which of the following is NOT a Market Structure?

a)

Perfect Competition

b)

Oligopoly

c)

Monopoly

d)

Corporation

35.
Which market structure involves selling identical products?
a)
Perfect Competition
b)
Monopolistic Competition
c)
Oligopoly
d)
Monopoly
36.
How many firms are there in a perfect competition?
a)
1
b)
2-5
c)
Many
37.
Why does no one firm dominate in a perfect competition?
a)
No firm wants to
b)
Each firm sells to different people
c)
Each firm produces so little of the total supply that they cannot influence prices
d)
One firm will eventually dominate and make it a monopoly
38.
A market structure characterized by firms producing similar product with easy entry into the market
a)
Perfect Competition
b)
Monopolistic Competition
c)
Monopoly
39.

Using the pizza store graphic, what market structure best fits the pizza industry?

a)

Monopoly

b)

Oligopoly

c)

Perfect competition

d)

Monopolistic competition

40.
An industry that is dominated by a few large firms is 
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
41.

Markets like automobiles, cell phones, cable TV, and internet providers are examples of which market structure?

a)

Monopoly

b)

Oligopoly

c)

Perfect competition

d)

Monopolistic competition

42.
Cartels are illegal in the United States.
a)
True
b)
False
43.
Which is NOT a characteristic of perfect competition?
a)
difficult entry into the market
b)
many sellers
c)
identical product
d)
no control over price  
44.
Which law bans monopolies?
a)
Tea Act
b)
Anti-Trust Act
c)
Townsend Act
d)
Monopoly Act
45.
Businesses can "Collude" or work together to set prices
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
46.
Factors that make it difficult for new firms to enter a market are called
a)
Barriers to entry
b)
Factors of production
c)
Limited supply
d)
Monopolistic Outlook
47.

Command terms. What is... "Determine"

a)

Obtain the only possible answer.

b)

Offer a considered and balanced review that includes a range of arguments, factors or hypotheses. Opinions or conclusions should be presented clearly and supported by appropriate evidence.

c)

Make an appraisal by weighing up the strengths and limitations.

48.
Command terms. What is... "Analyse"
a)
Break down in order to bring out the essential elements or structure.
b)
Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue.
c)
Obtain the only possible answer.
49.
Command terms. What is... "Examine"
a)
Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue.
b)
Obtain the only possible answer.
c)
Offer a considered and balanced review that includes a range of arguments, factors or hypotheses. Opinions or conclusions should be presented clearly and supported by appropriate evidence.
50.
Command terms. What is... "Explain"
a)
Give a detailed account including reasons or causes.
b)
Make an appraisal by weighing up the strengths and limitations.
c)
Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue.
51.
Command terms. What is... "Discuss"
a)
Offer a considered and balanced review that includes a range of arguments, factors or hypotheses. Opinions or conclusions should be presented clearly and supported by appropriate evidence.
b)
Make an appraisal by weighing up the strengths and limitations.
c)
Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue.
52.
Command terms. What is... "Evaluate"
a)
Make an appraisal by weighing up the strengths and limitations.
b)
Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue.
c)
Obtain the only possible answer.
53.
Command terms. What is the most important about... "Discuss"
a)
Balanced review. Conclusions supported by evidence.
b)
To weight strengths and limitations.
c)
To uncover the assumptions and interrelationships.
54.
Command terms. What is the most important about... "Evaluate"
a)
To weight strengths and limitations.
b)
To uncover the assumptions and interrelationships.
c)
There is only one possible answer.
55.
Command terms. What is the most important about... "Examine"
a)
To uncover the assumptions and interrelationships.
b)
There is only one possible answer.
c)
To give details; like reasons or causes.
56.
Command terms. What is the most important about... "Explain"
a)
To give details; like reasons or causes.
b)
To bring out the essential elements.
c)
Balanced review. Conclusions supported by evidence.
57.
Command terms. What is the most important about... "Analyse"
a)
To bring out the essential elements.
b)
Balanced review. Conclusions supported by evidence.
c)
To weight strengths and limitations.
58.
It is true about "discuss" questions…
a)
Without synthesis /evaluation, you cannot get more than 5 (/8) marks.
b)
With somewhat good analysis, you can get 8 (/8) marks.
c)
Without synthesis /evaluation, you get the 8 (/8) marks.
d)
Without pros and cons, you cannot get more than 5 (/8) marks.
59.
It is true about "explain" questions…
a)
Without examples, you cannot get more than 6 (/10)
b)
Without a diagram, you cannot get more than 8 (/10)
c)
Without examples, you can get a 10 (/10)
d)
Without diagrams, you can get a 10 (/10)
60.
For "explain" questions, you MUST have…
a)
Diagrams and examples
b)
Diagrams
c)
Examples
d)
Synthesis
61.
It is true about "evaluate" questions…
a)
Without examples, you cannot get more than 6 (/10)
b)
Without a diagram, you cannot get more than 8 (/10)
c)
Without examples, you can get a 10 (/10)
d)
Without diagrams, you can get a 10 (/10)
62.

What is the impact of an increase of tariffs on imported goods for domestic producers

a)

Government revenues will increase

b)

Prices will decrease

c)

Imports will fall

d)

Domestic firms will produce more

63.

What is the impact of a quota on imported goods?

a)

Government tariff revenues will increase

b)

Prices will decrease

c)

Employment will increase

d)

There will be efficiency gains

64.

What is a potential benefit of free trade?

a)

More employment in sunrise industries

b)

Specialization in commodity production

c)

Less unemployment in sunset industries

d)

Access to goods that are not produced in the domestic market

65.

What is the WTO?

a)

Replaced the GAFT (General Agreement on Free Trade)

b)

Countries have the ability to trade with other countries as they see fit.

c)

Current rounds of negotiations are called the “Dota Rounds’”

d)

Lowers trade barriers in developed nations to increase imports

66.

What is true about comparative advantage?

a)

It was first thought out by the mathematician David Rimaro

b)

A country can produce at a lower opportunity cost than another country.

c)

A country can produce at a higher opportunity cost than another country.

d)

Comparative advantage assumes that costs change and there is not a constant return to scale.

67.

Which one is not an argument in favour of protectionism

a)

Protects domestic employment

b)

Protects the economy from low-cost labour

c)

To promote overspecialization

d)

Certain industries need to be protected from free trade in case they are needed at times of war

68.

What was the Doha round?

a)

An agreement consisting only developing countries

b)

Trade negotiation among WTO members

c)

An agreement revolving trade negotiation that involves only developed countries

69.

Why are tariffs important for developing countries/economies?

a)

Tariffs are important to increase the productivity of domestic firms

b)

Tariffs help bring more foreign direct investment and improves trading relations

c)

Government tariff revenues are an important source of government revenue for developing nations

d)

Developing nations depend on tariffs to control their rate of exchange

70.

This account records a nation's imports and exports of goods, services, net investment income, and net transfers.

a)

current account

b)

financial account

c)

official reserves

71.

This account records flows of money from the purchase and sale of real estate and financial assets between countries.

a)

current account

b)

financial account

c)

official reserves

72.

Leroy Jenkins buys stock in a Japanese video game company. This transaction would be recorded as

a)

a credit to the US

b)

a debit to the US

73.
The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded as
a)
a credit to the U.S.
b)
a debit to the U.S.
74.

The U.S. Federal Reserve sells $4 million worth of Treasury bonds to a Chinese investor. This would be recorded as

a)

current account

b)

financial account

c)

official reserves account

75.

Which of the following is a part of the financial account?

a)

Inheritance taxes

b)

Transactions in patents

c)

Reserve assets

d)

None of the above

76.

PPP stands for what?

a)

Purchasing Power Parity

b)

People Printing Propaganda

c)

Pandas Peeing Profusely

d)

Preventing Pending Purchases

77.

The Human Poverty Index (HPI) measures what?

a)

Levels of wealth inequality in a society? Is there a presence of an "underclass?"

b)

What percentage of a nation is under the poverty line

c)

How many people live in extreme or absolute poverty

d)

How many people live in relative poverty

78.

Which of these health measures are NOT tracked by the HDI?

a)

Deaths from Malaria

b)

Deaths from HIV

c)

Infant mortality

d)

Deaths from Snowboarding

79.

Why did the Economist magazine choose the price of "Big Macs" to measure Purchasing Power Parity?

a)

Big Macs are popular in many nations, people have heard of them

b)

Big Macs are made the same way with the same ingredients in McDonald's restaurants worldwide.

c)

McDonalds is present in nearly every nation, so there is data to be collected in almost every nation.

d)

All of the Above

80.

GNI per capita measures what?

a)

How much national income a country earns per person, which includes income from all of a Nation's businesses located inside and outside of its home nation.

b)

How much national income a country earns from all businesses within its borders, divided by its population.

c)

Income inequality between rich and poor.

d)

How many Genes each person is carrying.

81.

The Gender-related development index measures what?

a)

How many opportunities women in a particular nation have to rise to the highest levels of business or government.

b)

How many women in a nation are married, divorced, or widowed.

c)

How well women are treated in a nation based on education levels, measures of health, and levels of legal rights.

d)

How tall women are compared to men in a nation.

82.

Which of these would be a good example of "human capital factors" that could be a source of economic growth?

a)

Rich natural resource deposits such as gold or oil

b)

Infrastructure like roads and electricity.

c)

Honest government and a just legal system.

d)

People who are well educated and trained in a valuable skill, such as software design.

83.

Why does increasing GDP in a nation result in increasing revenues for the government?

a)

More money in the country means more taxes collected.

b)

The government can sell more stuff to people.

c)

The UN will make larger payments to that nation's government.

d)

The government can increase interest rates, resulting in more revenue collected

84.

Who creates and monitors the Sustainable Development goals?

a)

The World Trade Organization

b)

The United States

c)

The United Nations

d)

The EU

85.

What can contribute to a higher life expectancy at birth?

a)

Good supplies of food and clean water

b)

Better Healthcare and medical technology

c)

Low levels of poverty and conflict

d)

All of the above

86.

What does "Infant Mortality Rate" measure?

a)

How many children reach age 12

b)

How many children reach age 30

c)

How many children reach age 1

d)

How long a child will live on average when it is born.

87.

The genuine progress indicator does what?

a)

Adjusts a nation's HDI measure based on social factors.

b)

Adjusts a nation's GDP by deducting environmental costs, social costs, crime, and commuting costs.

c)

Measures how progressive a nation's political system is.

d)

Measures how accurate a nation's reported information is

88.

According to Ernesto Sirolli (TED talk) what is the best way to assist Entrepreneurs in developing nations?

a)

Give them money or free food.

b)

Grow tomatoes for them.

c)

Shut up and listen to their ideas, what they say they need to be successful.

d)

Teach them American/ European business and management techniques.

89.

What is a common element of most developing countries.

a)

Lack of natural resources.

b)

Bad government and institutions.

c)

Lazy people

d)

Overpopulation

90.

Inflation is the sustained increase in the price of a product

a)

True

b)

False

91.

The CPI measures the cost of goods and services in a typical household in the economy.

a)

True

b)

False

92.

Which of the following is NOT a limitation of the CPI?

a)

Consumers changing their consumption patterns due to changing prices

b)

Comparisons over long periods of time (more than 10 years) are difficult

c)

Consumers tend to be loyal to particular products so their consumption patterns will not really change.

d)

Not all consumers will consume what is in the 'typical' basket of goods and services

93.

The purchasing power of your income is called your

a)

real income

b)

nominal income

94.

Which of the following is NOT a consequence of inflation?

a)

low menu costs

b)

high levels of uncertainty

c)

a false sense of the value of money

d)

reduced export competitiveness

95.

Which of the following groups is likely to be better off in times of inflation?

a)

Pensioners

b)

Savers

c)

Borrowers

d)

Lenders

96.

What would most governments consider an acceptable rate of inflation?

a)

0 - 1%

b)

1 - 2%

c)

2 - 3%

d)

3 - 4%

97.

The diagram represents which type of inflation?

a)

demand-pull

b)

cost-push

98.

Which of the following is NOT a reason why deflation rarely happens?

a)

Firms try to avoid additional menu costs

b)

Firms cannot reduce their unit costs

c)

The fear of price wars

d)

The inflexibility of wages

99.

Which of these factors are true about how education lead to economic development?

a)

Education lead to better living standards

b)

Education improves of the role of women in society

c)

All of these

d)

Education increases awareness and communication, leading to social change

100.

Who spends a higher part of GDP on healthcare, leading to development?

a)

Australia

b)

Syrian Arab Republic

c)

Ghana

d)

Brazil

101.

What is NOT a possible positive externality on development generated by insfrastructure?

a)

Children can get to school becasue of an increase in roads and road quality.

b)

Sewage and water treatment facilities increasing the health of the workforce.

c)

Firms gain higher profits.

d)

It helps farmers gain access to larger markets and hence, more profit.

102.

Which factor related to a functioning legal system compromises development?

a)

Inflation

b)

Proporty rights

c)

Unemployment

d)

None of the above

103.

Who are the main recipients for micro-credit?

a)

Rich women

b)

Poor men

c)

Poor children

d)

Poor women

e)

All of the above

104.

What kind of economic integration arrangement has common policies on product regulation, and free movement of goods, services, capital and labour?

a)

Common markets

b)

Preferential trading area

c)

Free trade areas

d)

Custom unions

105.

It is correct to say that countries within a customs union have...

a)

Common external barriers

b)

Common currency and a common central bank

c)

Common policies on product regulation.

d)

None of the above

106.

The EU is better seen as an example of...

a)

A Economic and monetary union

b)

Free trade area

c)

A Customs Union

d)

A Complete Economic integration

107.

The following image demonstrates Donald Trump's preference for....

a)

Globalism

b)

Internationalism

c)

Protectionism

d)

Americanization

108.

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

a)

Microeconomics

b)

Macroeconomics

c)

Development Economics

d)

International Economics

109.

__________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)  

110.

(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.

111.

What does the PPC diagram show?

a)

Opportunity Cost & Trade offs

b)

Supply and Demand

c)

Inflation

d)

Utility

112.

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

113.

GDP is used to measure

a)

Economic Growth

b)

Inflation

c)

Taxation

d)

Opportunity Cost

114.

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

115.
In a four-sector economy, which of the following is assumed always to increase when GDP increases?***
a)
I
b)
G
c)
M
d)
X
116.
A free good in economics is considered to be one that
I.  has no opportunity cost.
II.  is supplied free of charge by the public agencies.
III.  is produced by the state. **
a)
I only
b)
i and II only 
c)
II and III only
d)
I, II and III
117.
Cans of beans are sold at a lower price in Supermarket X than Supermarket Y.  As a result, Maria decides to buy her beans from Supermarket X.  Economic theory would suggest that this is an example of **
a)
 rational behaviour.
b)
brand loyalty.
c)
the law of supply
d)
positive behaviour
118.
All of the following are common features of both centrally planned economies and market economies except   *
a)
   privatised property rights.
b)
use of a central bank.
c)
use of taxes.
d)
wage differentials.
119.
After a serious pollution incident at sea, a government introduces stricter safety measures for oil tankers.  The table below represents four possible combinations of market responses.**
a)
Movement along the Demand Curve, Shift of the Supply Curve
b)
Movement along the Supply Curve Shift of the Demand Curve
c)
Shift of the Demand Curve Shift of the Supply Curve
d)
Movement along the Demand Curve Movement along the Supply Curve
120.
What is the most likely effect of a law which establishes a minimum wage above the market rate in the predominantly competitive economy? **
a)
 Fewer people will be employed.
b)
Firms substitute more labour for capital.
c)
Most producers will experience efficiency gains.
d)
Costs of production will necessarily increase.
121.
 Merit goods, such as health care and education *
a)
are always supplied through the market.
b)
 have identical characteristics to public goods.
c)
would be oversupplied if provided by the market.
d)
have positive externalities.
122.
Private road transport has large negative externalities.  Which one of the following is least likely to internalise the externality? *
a)
Subsidies to public transport
b)
Higher fuel duties
c)
Road pricing
d)
Higher ownership taxes for private vehicles
123.
The quantity demanded of an inferior good will increase as
I.  the price falls.
II.  income falls.
III.  supply falls. **
a)
 I only
b)
I and II only
c)
ii and III  only 
d)
I II and III
124.
The supply of organically produced food tends to be price inelastic in the short run because **
a)
the land on which it is grown must be free of fertilisers for a number of years.
b)
it is more expensive than non-organic food.
c)
some consumers are increasingly concerned about the health effects of chemicals on food.
d)
there is limited availability of close substitutes.
125.
When demand is price inelastic and price increases  
I.  total revenue will increase.
II.  sales will fall.
III.  expenditure will fall. *
a)
I only
b)
I and II only 
c)
II and III only 
d)
I II and III
126.
If national income is in equilibrium it follows that *
a)
all resources are fully employed.
b)
prices are determined by market forces.
c)
planned injections and withdrawals are equal.
d)
all the goods produced have been sold
127.
Which one of the following is most likely to have caused the shift from AD1 to AD2  to the RIGHT  *
a)
A reduction in interest rates
b)
An increase in taxes
c)
 Lower government spending
d)
 Increased unemployment.
128.
When a given increase in investment leads to a larger increase in income, this is known as  *
a)
crowding out.
b)
 equilibrium.
c)
multiplier
d)
appreciation 
129.
The theory of comparative advantage tells us that in order to benefit from international trade a country must *
a)
be the best in the world at producing a particular product.
b)
produce at a lower opportunity cost than its trading partners.
c)
have a natural monopoly in the production of a certain item.
d)
have a stronger currency than any of its rivals.
130.
Globalisation’ depends upon each of the following except *
a)
the growth of multinational companies.
b)
 faster communications.
c)
workers moving to high-income countries
d)
the ability of firms to place profits in money markets round the world.
131.
A n appreciation of the peso (the demand curve shifts ) to the right could be caused by
I.  increased exports from Mexico to the USA.
II.  increased numbers of tourists from the USA to Mexico.
 III.  lower interest rates in Mexico, with higher interest rates in the USA.***
a)
I only
b)
1 and  II only 
c)
II and III only 
d)
I II and III
132.
Which one of the following is not a reason for the continued use of real GDP per head as an important indicator of economic development?**
a)
It correlate well with changes in welfare in the long run.
b)
Nearly all countries agree on how to measure it.
c)
 It allows for differences in domestic inflation rates.
d)
It correlates well with indicators of deprivation.
133.
The government of a Less Developed Country awards scholarships for able students to study Economics at university.  This represents *
a)
capital broadening.
b)
investment in social capital.
c)
 investment in human capital.
d)
social returns to scale.
134.
Multilateral aid is best defined as aid which*
a)
used for many different purposes in the country which receives the aid.
b)
comes from a non-government organisation.
c)
is used to both widen and deepen capital-labour ratios.  
d)
comes indirectly from several donor countries through a body such as the United Nations.
135.
Structural Adjustment Programmes of the type favoured by the International Monetary Fund for indebted Less Developed Countrie are primarily intended to**
a)
increase the role of government to stabilise the economy.
b)
increase government spending to meet social needs.
c)
improve the economy’s earnings from the world economy through trade and outward orientation.
d)
eliminate inflation through the imposition of price controls.
136.
Sustainable development is concerned with development which
a)
meets the needs of the present and future generations.
b)
sustains existing growth and consumption patterns.
c)
favours “appropriate technology” methods of production.
d)
promotes agricultural growth so as to sustain food productioin.
137.
these questions come from an SL paper 1 exam which of the following are correct *
a)
economic terms are crucial in getting it right
b)
all of these
c)
a 7 would have been 75%
d)
you must read the question carefully
138.
which of the following will increase a country's international competitiveness *
a)
structural change policy
b)
increase in domestic interest rates 
c)
improved terms of trade 
d)
currency appreciation
139.

Is there a country who has a absolute advantage in the production of cloth?

a)

Yes, China.

b)

Yes, India.

c)

No

140.

Is there a country who has a absolute advantage in the production of shoes?

a)

Yes, China.

b)

Yes, India.

c)

No

141.
According to the law of comparative advantage, a country should 
a)
Specialize and export goods with the lowest production cost
b)
Specialize and export goods with the lowest opportunity cost
c)
Specialize and export goods with the lowest average cost
d)
Specialize and export goods with the highest opportunity cost
142.

Is there a country who has a comparative advantage in the production of shoes?

a)

Yes, China.

b)

Yes, India.

c)

No

143.

With free trade, prices will ...

a)

Decrease from PE to P1

b)

Increase from P1 to PE

c)

Not change

144.
Agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and the US
a)
NAFTA
b)
EU
c)
ASEAN
d)
CARICOM
145.

With free trade, quantity consumed will ...

a)

Increase from Q1 to QE

b)

Increase from Q1 to Q2

c)

Not change

d)

Increase from QE to Q2

146.

With free trade, quantity imported will be ...

a)

Q1QE

b)

Q1Q2

c)

QEQ2

d)

Zero

147.

With free trade, local production will ...

a)

Decrease from QE to Q1

b)

Decrease from Q2 to Q1

c)

Increase from QE to Q2

d)

Not change

148.
Those in favor of protectionist trade policies would most likely
a)
Believe that restrictions harm consumers
b)
Argue in support of free trade
c)
Support a massive reduction in tariffs
d)
Cite the need to preserve domestic industries and jobs
149.
Limit of the amount of a good that can be imported
a)
Subsidy
b)
Quota
c)
Exports
d)
Appreciation 
150.
Suppose the US decreases the tariff on imported beef which makes foreign beef cheaper than US beef. What would the consequences be?
a)
There would be an increase in the number of imported beef and the number of beef produced in the US
b)
There would be a decrease in the number of imported beef and the number of beef produced in the US
c)
There would be an increase in the number of imported beef and a decrease in the number of beef produced in the US
d)
There would be a decrease in the number of imported beef and an increase in the number of beef produced in the US
151.

Which of the following would increase the Multiplier?

a)

Fall in interest rates

b)

Increase in highest rate of income tax

c)

A fall in the value of the pound

d)

An increase in consumer confidence

152.

Which of the following would increase AD?

a)

A fall in government spending

b)

An increase in the interest rate

c)

An increase in consumer confidence

d)

An increase in tax revenue

153.

Which of the following is a limitation of CPI as a measure of inflation?

a)

The basket of goods is never representative of all households

b)

An index is inevitably inaccurate

c)

Surveys are likely to be filled in inaccurately

d)

There is a timelag between the data collection and release of CPI figures

154.

Someone looking for a job having been made redundant during a recession would count as

a)

structural unemployment

b)

cyclical unemployment

c)

frictional unemployment

d)

seasonal unemployment

155.

Someone looking for a job having just left university

a)

structural unemployment

b)

cyclical unemployment

c)

frictional unemployment

d)

seasonal unemployment

156.

Someone just been laid off from an iron foundry closed down in the UK counts as

a)

structural unemployment

b)

cyclical unemployment

c)

frictional unemployment

d)

seasonal unemployment

157.

Which is the following is not a cost of economic growth

a)

environment damage

b)

rising inequality

c)

higher standards of living

d)

causes savings to be worth less

e)

unsustainable use of resources

158.

Why do we study Economics?

a)

To change the world

b)

To make tonnes of money

c)

To become politicians

d)

To tackle poverty and inequality

Similar Resources on Wayground

APUSH Midterm

160 questions

APUSH Midterm

quiz

Worksheet

•

10th - 12th Grade

VỢ CHỒNG A PHỦ

162 questions

VỢ CHỒNG A PHỦ

quiz

Worksheet

•

12th Grade

olimpiade 6 sosiologi

157 questions

olimpiade 6 sosiologi

quiz

Worksheet

•

12th Grade

Unit 2 Psychology Vocabulary

158 questions

Unit 2 Psychology Vocabulary

quiz

Worksheet

•

12th Grade

AP Psychology Unit Two Vocabulary

158 questions

AP Psychology Unit Two Vocabulary

quiz

Worksheet

•

12th Grade