ExamTeXIB Economics · Unit 1 · Introduction to economics · last updated
Introduction to economics practice questions (IB Economics)
Unit 1 sets up the toolkit: scarcity and choice, opportunity cost, the production possibilities curve, the circular flow and the difference between positive and normative claims. There are no free sample questions on it yet, so this page gives 6 key terms with the formulas typeset, and a door to make an IB Economics-style paper on this unit from your own notes. The free exams are typeset PDFs with an answer key; the exam downloads without a signup.
Sample questions
No free sample questions on introduction to economics yet. The key terms below cover what IB Economics expects you to know for this unit; to practise it, make a paper from your notes or from the IB outline with the unit ticked.
Key terms
The definitions and formulas IB Economics expects for introduction to economics, typeset as they appear on the paper.
- Scarcity
- The basic economic problem: resources are limited while wants are unlimited, so every society must decide what to produce, how, and for whom.
- Opportunity cost
- The value of the next best alternative given up when a choice is made. On a production possibilities curve it is read from the slope: the units of one good forgone for one more unit of the other.
- Production possibilities curve (PPC)
- All combinations of two goods an economy can produce when every resource is fully and efficiently used. Points inside the curve are inefficient, points outside are unattainable, and economic growth shifts the curve outward.
- Positive and normative economics
- Positive statements can be tested against evidence ("a tax raised prices by 10 percent"); normative statements are value judgements about what ought to be ("the tax is unfair"). Examiners expect you to separate the two in evaluations.
- Circular flow of income
- The model of flows between households and firms: factor payments one way, spending on output the other, with leakages (saving, taxes, imports) and injections (investment, government spending, exports). National income equals national output equals national expenditure.
- Ceteris paribus
- "Other things being equal": the assumption that only the variable under study changes. It is why a demand curve shows price alone changing while income, tastes and other prices are held fixed.
Frequently asked questions
Are there free introduction to economics practice questions for IB Economics?
Not as a ready-made sample yet. The key terms on this page cover what IB Economics expects for introduction to economics. To practise it, open the generator with the IB Economics style, tick "Unit 1 · Introduction to economics" and the questions are written from the IB outline for that unit; or upload your own notes on it.
How do I make an IB Economics practice paper on introduction to economics from my notes?
Open the create page with the IB Economics style preselected, tick "Unit 1 · Introduction to economics" under the units to cover (or upload your notes and slides on it), choose the question mix and time limit, and generate. You get a typeset PDF in the IB format with a separate answer key, in about a minute. It is free to try, no card needed.
What does IB Economics expect you to know about introduction to economics?
Unit 1 sets up the toolkit: scarcity and choice, opportunity cost, the production possibilities curve, the circular flow and the difference between positive and normative claims. The terms to have cold: Scarcity, Opportunity cost, Production possibilities curve (PPC), Positive and normative economics, Circular flow of income. Each is defined below with its formula typeset where one applies.
What is the IB Economics exam format?
The IB Economics guide explains the papers, their timing and mark allocation, with a sample question and mark scheme and the common mistakes, and links to the generator with the IB Economics style preselected.
Other IB Economics topics
All IB Economics topics · IB Economics exam guide · All free practice exams
Make an IB Economics paper on introduction to economics from your notes
Open "Pick your exam" with the IB Economics style preselected and tick "Unit 1 · Introduction to economics", or upload your notes on it. You get a typeset paper in the IB format with a separate answer key.