IB Economics: Key Concepts Quiz

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Test your understanding of core economics topics.

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Ishanvi Goel

India

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IB Economics: Key Concepts Quiz


Froggy Jumps IB Economics: Key Concepts QuizVersión en línea Test your understanding of core economics topics. por Ishanvi Goel 1 What happens to MSC when a tax is imposed on a negative externality? a It falls below MPC b It remains unchanged c It rises to reflect social costs 2 Which policy commonly internalizes a pollution externality most efficiently? a Taxes on emissions or tradable permits b Direct subsidies only c Price freezes 3 Positive consumption externalities can be corrected by... a Raising tariffs b Subsidies or government provision c Market-only fixes 4 In a subsidy scenario, which curve shifts to the right? a Supply shifts inward b Supply shifts outward c Demand shifts inward 5 Which of the following best describes a public sector efficiency issue? a Budget constraints limit service provision b Unlimited funds c No trade-offs at all 6 Trade protection often causes what kind of welfare loss? a Welfare loss from misallocation b Only gains with no loss c No loss; welfare rises 7 What is a key feature of a ‘debt relief’ program for ELDCs? a Debt reduction conditional on reforms b Automatic exemption for all c Immediate zero-interest loans 8 Which policy is typically considered growth-friendly for EMDCs? a Heavy subsidies to all sectors b Market-based supply-side reforms c Fixed exchange rates only 9 Which factor commonly explains structural unemployment? a Seasonal tourism only b Temporary weather changes c Technological or economic structural shifts 10 What characterizes a positive externality of production? a MSC > MPC b MSC < MPC due to external benefits c No difference between MSC and MPC 11 What measures the responsiveness of quantity demanded to price changes? a Cross-price elasticity b Price elasticity of demand c Income elasticity of demand 12 Which term describes the market when quantity supplied equals quantity demanded? a Price floor b Price ceiling c Market equilibrium 13 A factory emitting pollution affecting nearby residents is an example of? a Internal cost b Negative externality c Positive externality 14 Getting a vaccine can benefit society by reducing disease spread: this is? a Internality b Negative externality c Positive externality 15 A market with a single seller who has significant price control is called? a Monopoly b Oligopoly c Perfect competition 16 Few firms, interdependent decisions, high barriers to entry describe? a Perfect competition b Oligopoly c Monopoly 17 Which market structure features many firms and product differentiation? a Perfect competition b Monopolistic competition c Oligopoly 18 If demand is elastic, a price increase will typically: a Increase total revenue b Leave revenue unchanged c Decrease total revenue 19 A government-imposed minimum price is called a? a Tariff b Price floor c Price ceiling 20 What causes a shift in the supply curve? a Consumer income change b A change in price c Non-price factors like input costs 21 Which policy lowers aggregate demand by reducing government spending? a Contractionary fiscal policy b Monetary easing c Expansionary fiscal policy 22 What tool does a central bank use to tighten monetary policy? a Cutting reserve requirements b Raising interest rates c Buying government bonds 23 A tax cut aimed at increasing private consumption is an example of: a Demand-side fiscal policy b Monetary policy c Supply-side policy 24 Which policy is primarily a supply-side measure? a Increase tariffs on imports b Reduce corporate taxes to boost investment c Increase public spending on welfare 25 Quantitative easing is most associated with: a Expanding the money supply b Reducing government debt c Raising taxes 26 A policy to deregulate industries targets: a Demand-side stabilization b Supply-side growth c Fiscal consolidation 27 What is the effect of expansionary monetary policy on interest rates? a Lower interest rates b No change in rates c Higher interest rates 28 Which policy instrument is typical of fiscal expansion? a Increase government spending b Increase taxes c Reduce money supply 29 Which of the following is a supply-side investment incentive? a R&D tax credits b Public housing subsidies c Salaries tax hike 30 Demand-side policies aim primarily to: a Influence aggregate demand b Change production capacity c Alter long-run growth only 31 In microeconomics, what causes a movement along the demand curve? a A change in the price of a related good b A change in price c A change in consumer income 32 What does price elasticity of demand measure? a Sensitivity of supply to price changes b Rate of inflation c Sensitivity of quantity demanded to price changes 33 Which policy targets the AD curve to reduce inflation in macroeconomics? a Supply-side policy b Contractionary fiscal policy c Expansionary monetary policy 34 If the economy has unemployment above the natural rate, which policy is typically used? a Protectionist tariffs b Expansionary fiscal/monetary policy c Contractionary fiscal policy 35 What is a key feature of a globalized economy? a Domestic production only b Reduced technology transfer c Increased cross-border trade and investment 36 What does a budget deficit imply in macro terms? a Exports exceed imports b Public spending exceeds revenue c Tax rates are zero 37 Which factor shifts the short-run AS curve upward? a Technological progress b Increase in capital stock c Higher input costs 38 A depreciation of the domestic currency in the FX market generally: a Always worsens the trade balance b Lowers unemployment immediately c Raises net exports in the short run 39 In microeconomics, which scenario is likely to cause deadweight loss? a Price ceiling above equilibrium b Perfect competition with low costs c Market at equilibrium 40 Which macro policy combination is expansionary? a Raising government spending and cutting taxes b Increasing tariffs only c Raising interest rates and reducing spending 41 What measures responsiveness of quantity demanded to price changes? a Price elasticity of demand b Cross-price elasticity c Income elasticity of demand 42 Which curve shifts when the government increases spending? a Short-run Phillips curve b AS curve c Aggregate demand 43 What describes a country’s total imports and exports? a Current account b Trade balance c Balance of payments 44 A market with many sellers offering identical products is? a Perfect competition b Monopoly c Oligopoly 45 Which policy lowers inflation by reducing aggregate demand? a Expansionary fiscal policy b Supply-side reform c Contractionary monetary policy 46 What is the protectionist tax on imports called? a Quota b Tariff c Subsidy 47 What happens to consumer surplus when price rises? a Decreases b Remains same c Increases 48 If unemployment falls but inflation rises, what is likely occurring? a Hyperinflation b Demand-pull inflation c Cost-push inflation 49 Which exchange rate regime fixes a currency within a band? a Floating rate b Currency board c Crawling peg 50 What describes market inefficiency caused by taxes or subsidies? a Producer surplus gain b Price discrimination c Deadweight loss

IB Economics: Key Concepts Quiz

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IB Economics: Key Concepts QuizVersión en línea

por Ishanvi Goel

What happens to MSC when a tax is imposed on a negative externality?

Which policy commonly internalizes a pollution externality most efficiently?

Positive consumption externalities can be corrected by...

In a subsidy scenario, which curve shifts to the right?

Which of the following best describes a public sector efficiency issue?

Trade protection often causes what kind of welfare loss?

What is a key feature of a ‘debt relief’ program for ELDCs?

Which policy is typically considered growth-friendly for EMDCs?

Which factor commonly explains structural unemployment?

What characterizes a positive externality of production?

What measures the responsiveness of quantity demanded to price changes?

Which term describes the market when quantity supplied equals quantity demanded?

A factory emitting pollution affecting nearby residents is an example of?

Getting a vaccine can benefit society by reducing disease spread: this is?

A market with a single seller who has significant price control is called?

Few firms, interdependent decisions, high barriers to entry describe?

Which market structure features many firms and product differentiation?

If demand is elastic, a price increase will typically:

A government-imposed minimum price is called a?

What causes a shift in the supply curve?

Which policy lowers aggregate demand by reducing government spending?

What tool does a central bank use to tighten monetary policy?

A tax cut aimed at increasing private consumption is an example of:

Which policy is primarily a supply-side measure?

Quantitative easing is most associated with:

A policy to deregulate industries targets:

What is the effect of expansionary monetary policy on interest rates?

Which policy instrument is typical of fiscal expansion?

Which of the following is a supply-side investment incentive?

Demand-side policies aim primarily to:

In microeconomics, what causes a movement along the demand curve?

What does price elasticity of demand measure?

Which policy targets the AD curve to reduce inflation in macroeconomics?

If the economy has unemployment above the natural rate, which policy is typically used?

What is a key feature of a globalized economy?

What does a budget deficit imply in macro terms?

Which factor shifts the short-run AS curve upward?

A depreciation of the domestic currency in the FX market generally:

In microeconomics, which scenario is likely to cause deadweight loss?

Which macro policy combination is expansionary?

What measures responsiveness of quantity demanded to price changes?

Which curve shifts when the government increases spending?

What describes a country’s total imports and exports?

A market with many sellers offering identical products is?

Which policy lowers inflation by reducing aggregate demand?

What is the protectionist tax on imports called?

What happens to consumer surplus when price rises?

If unemployment falls but inflation rises, what is likely occurring?

Which exchange rate regime fixes a currency within a band?

What describes market inefficiency caused by taxes or subsidies?