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IB Economics Quick Quiz

Total questions: 20

Worksheet time: 14mins

Name
Class
Date
1.

In the former Soviet Union, consumers had to wait in long lines to buy everyday items like bread. They did not have many choices and the government controlled factories. In what type of economy did they live?

a)

Market

b)

Mixed

c)

Traditional

d)

Command

2.

The amount of money a business makes after its expenses are paid

a)

profit

b)

supply

c)

demand

d)

scarcity

3.

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

a)

subsistence

b)

specialization

c)

scarcity

d)

bartering

4.

Privatization refers to ....

a)

Transfer of assets from people to government

b)

Transfer of assets from public to private organizations

c)

Transfer of assets from corporate to public

d)

Transfer of assets from corporate to government

5.

According to the Keynesian framework, which of the following may help a country reduce inflation, but will not help that country to get out of a recession?

a)

increased spending by the government on health care

b)

an increase in taxes on business investments

c)

an increase in military spending

d)

a decrease in the tax rate on consumer income

6.

According to macroeconomic theory, evidence that high unemployment may be accompanied by low inflation, and low unemployment may be accompanied by high inflation is supported by the:

a)

neoclassical expenditure-output model.

b)

Keynesian cross diagram.

c)

Keynesian Phillips curve tradeoff.

d)

Keynesian Inflation trade-off model.

7.

component of Aggregate demand

a)

foreign exchange

b)

interest rate

c)

consumption

d)

none of these

8.

component of aggregate supply is

a)

saving

b)

consumption

c)

both saving and consumption

d)

Investment

9.

The Business Cycle measures ___ over time.

a)

wealth

b)

inflation

c)

economic growth

10.

The business cycle rises above the trendline during-

a)

rescessions

b)

expansions

c)

troughs

11.

When contraction (recession) begins in a business cycle- the economy will experience

a)

higher unemployment

b)

lower inflation (deflation)

c)

both a & b

12.

Economics is considered to be a social science because its study includes:

a)

ENVIRONMENT

b)

WOMEN ISSUES

c)

HUMAN BEHAVIOUR

d)

NONE OF THE ABOVE

13.

Formula to find NDP(Net Domestic Product) is_______

a)

GDP-Income from abroad

b)

GDP+Income from abroad

c)

GNP-Depreciation

d)

GDP-Depreciation

14.

According to the Keynesian framework, which of the following may help a country reduce inflation, but will not help that country to get out of a recession?

a)

increased spending by the government on health care

b)

an increase in taxes on business investments

c)

an increase in military spending

d)

a decrease in the tax rate on consumer income

15.
Which of the following goods is included in GDP?
a)
Dresses
b)
Screws used in a cruise missile
c)
Flour for making bread
d)
Cloth for making dresses
16.
Lauren coaches softball and gets paid in cash each week.  Is this included in GDP?
a)
Yes - Consumer Spending
b)
Yes - Investment 
c)
No - Underground Economy
d)
No - Purely financial transaction 
17.
Why is real GDP more accurate than nominal GDP?
a)
It's adjusted for price changes
b)
It's adjusted for depreciation
c)
It includes unpaid and paid work.
d)
It includes unrecorded business.
18.

A economist who introduced the steady increase of the supply of money within growing economies.

a)

David Ricardo

b)

John Maynard Keynes

c)

Milton Friedman

d)

Beatrice Webb

19.

Competition and profit motive are important characteristics of a:

a)

command economy

b)

traditional economy

c)

market economy

d)

socialist economy

20.

Pick the odd one out in case of AD< AS

a)

Undesired stock of goods

b)

Increase the production

c)

Employment decrease

d)

Income decrease