Basic Concepts
People use this to buy things
What is Money?
If a store has a sale, what usually happens to demand?
What is an Increase?
People usually keep their money in these for safety
What is a Bank?
A person who starts their own business
What is an Entrepreneur?
People pay this to the government to help fund public services
Taxes
Things that people don't really need, like video games or snacks
What is Wants?
If a store raises prices, what usually happens to demand?
What is a Decrease?
People earn this when they work
What is Income/Wages/Salary?
When a government imposes a tax on imports
What are Tariffs?
When an economy undergoes two consecutive quarters of decline
What is Recession?
When you miss out on something due to a choice you made what is it known as?
What is Opportunity Cost?
When there’s a long line for a product that’s almost sold out, what does that show?
What is a High demand or Shortage?
The cost of borrowing money
What is Interest?
These are products made in one country and sold in another
Identify one difference between micro and macro economics
Microeconomics studies how individual households and firms make choices about resources and prices.
Macroeconomics looks at large-scale economic factors like inflation, unemployment, and national income to understand the overall performance of the economy
Name one way to to correct a negative consumption externality/demerit good?
What is Tax/Legislation/Tradable permit scheme?
What happens to the price when demand goes up but supply stays the same?
What is a Price increase?
This happens when the general price of goods and services rise over time
What is Inflation?
When countries exchange with each other, what is it called?
What is International Trade?
A tax takes a bigger share of income from poor people than rich people
What is a Regressive tax?
Name the five of the nine IB economics key concepts
What is Scarcity, Choice, Efficiency, Equity, Economic well-being, Sustainability, Change, Interdependence, Intervention?
Name two reasons why a shift in demand might occur
What is Income, tastes and preferences, future price expectations, number of consumers, price of related goods?
Name one country that has a command/planned economy
What is North Korea or Cuba?
When one business controls an entire market, what is it called?
The main difference between fiscal policy and monetary policy
Fiscal policy is about government spending/taxes; monetary policy is about interest rates and money supply