Unit 1: Introduction to Economics
Topic 1.2: How Do Economists Approach the World? Questions
Practice 20 exam-style questions for IB Economics Topic 1.2. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
11 mark
Which is the odd one out, and why? **Keynes · Friedman · new classical · laissez faire**
Markscheme and model answer locked
Unlock Question21 mark
Complete the sentence with the missing word: "_______ paribus means change one thing and hold everything else still."
Markscheme and model answer locked
Unlock Question31 mark
Complete with ONE word: "_______ utility is the satisfaction from one more unit — which is why water is cheap and diamonds are not."
Markscheme and model answer locked
Unlock Question5Define2 marks
2026
Define the term normative statement.
Markscheme and model answer locked
Unlock Question6Define2 marks
2026
Define the term positive statement.
Markscheme and model answer locked
Unlock Question71 mark
Which is the odd one out, and why? **loss aversion · the default wins · now beats later · supply and demand**
Markscheme and model answer locked
Unlock Question8Define2 marks
2026
Define the term empirical evidence.
Markscheme and model answer locked
Unlock Question111 mark
Complete with ONE word: "Every model rests on _______ that are not quite true, which is how it gets simple enough to read."
Markscheme and model answer locked
Unlock Question121 mark
Which is the odd one out, and why? **people are rational · perfect information · nothing else changes · supply slopes upward**
Markscheme and model answer locked
Unlock Question131 mark
Complete with ONE word: "A _______ changes how a choice is presented — usually the default — without removing any option."
Markscheme and model answer locked
Unlock Question141 mark
Which is the odd one out, and why? **Adam Smith · Say's law · Karl Marx · behavioural economics**
Markscheme and model answer locked
Unlock Question151 mark
Complete with ONE word: "Keynes argued that cutting wages deepens a slump, because workers are also _______."
Markscheme and model answer locked
Unlock Question161 mark
A model that cannot possibly be proved wrong is:
Markscheme and model answer locked
Unlock Question171 mark
"Inflation at 6% is too high." This statement is:
Markscheme and model answer locked
Unlock Question181 mark
Two economists use the same model and reach opposite policies. Most likely:
Markscheme and model answer locked
Unlock Question191 mark
The 1970s were a problem for Keynesian thinking because:
Markscheme and model answer locked
Unlock Question201 mark
Automatic pension enrolment raises the number of savers mainly because:
Markscheme and model answer locked
Unlock QuestionReady to practice Topic 1.2?
Get instant AI feedback on your answers, view detailed markschemes, and track your progress across all IB Economics topics.
Start Practising Now