Unit 1: Introduction to Economics
Topic 1.1: What is Economics? Questions
Practice 20 exam-style questions for IB Economics Topic 1.1. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
11 mark
A government decides to spend more on military equipment and less on education. This is an example of:
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The three basic economic questions that every society must answer are:
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2026
Distinguish between a free good and an economic good.
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2026
Outline the three basic economic questions that all economies must answer.
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A student has two hours of free time and can either study for an exam or play football. If the student chooses to study, the opportunity cost is:
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2026
Define the term leakage as used in the circular flow of income.
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Most real-world economies are best described as:
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2026
State two changes that would cause a country's production possibilities curve to shift outward.
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2026
Define the term injection as used in the circular flow of income.
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Using a circular flow of income diagram, explain how the switch to imported goods described above could reduce national income in Meridan.
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Using a circular flow of income diagram, explain how the income tax rise described above could reduce national income in Tavira.
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Using a production possibilities curve (PPC) diagram, explain the effect of the trade agreement on Tarun's output.
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Define the term opportunity cost.
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A country's unemployment rate falls from 12 % to 5 %. Explain why its production possibilities curve does not shift.
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2026
Using a circular flow of income diagram, explain how the expansion of microfinance described above could affect the economy of Sorelia.
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Using a circular flow of income diagram, explain how the rise in export orders described above could increase national income in Ordel.
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Using a production possibilities curve (PPC) diagram, explain how the education recommendations described above could affect Brinora’s production possibilities.
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