Study sets matching "ib economics"

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Study sets matching "ib economics"

181 terms
IB Economics
Actual Output
Potential output
Actual Growth
Potential Growth
Production of goods and services in a given time period
Possible production of goods or services in an economy if all…
Occurs where previous unemployment of factors of production a…
Occurs when there is an increase in quantity and increase in…
Actual Output
Production of goods and services in a given time period
Potential output
Possible production of goods or services in an economy if all…
14 terms
IB Economics - Macroeconomics Diagrams
AD Outward Shift
Aggregate Demand
Business Cycle
Circular Flow of Income
AD Outward Shift
Aggregate Demand
77 terms
IB International Economics (HL)
Free Trade
Benefits of Free Trade
Economies of Scale
Absolute Advantage
No protection on goods from other nations (international trad…
1. Allows specialization of resources increasing output ... 2. I…
the idea of obtaining larger production returns through the u…
A country has an absolute advantage in the production of a go…
Free Trade
No protection on goods from other nations (international trad…
Benefits of Free Trade
1. Allows specialization of resources increasing output ... 2. I…
15 terms
IB Economics - Macroeconomics Diagrams
AD Outward Shift
Aggregate Demand
Business Cycle
Circular Flow of Income
AD Outward Shift
Aggregate Demand
14 terms
IB Economics - Macroeconomics Diagrams
AD Outward Shift
Aggregate Demand
Business Cycle
Circular Flow of Income
AD Outward Shift
Aggregate Demand
IB Economics
PPC
Law of demand
Non-price determinants of demand
Law of supply
As the price of a product falls, the quantity demanded of the…
1. Income effect... 2. Substitution goods... 3. Complementary goods…
As the price of a products rises, the quantity supplied of th…
PPC
Law of demand
As the price of a product falls, the quantity demanded of the…
51 terms
IB Economics
Opportunity cost
Production Possibility Curve/Frontier
Product market
Resource market
Second best alternative's benefits foregone.
Graph that shows the quantity of 2 products that can be produ…
Where households buy g&s we desire from firms.
Where firms buy econ resources to make their products.
Opportunity cost
Second best alternative's benefits foregone.
Production Possibility Curve/Frontier
Graph that shows the quantity of 2 products that can be produ…
77 terms
IB International Economics (Revision)
Free Trade
Benefits of Free Trade
Economies of Scale
Absolute Advantage
No protection on goods from other nations (international trad…
1. Allows specialization of resources increasing output ... 2. I…
the idea of obtaining larger production returns through the u…
A country has an absolute advantage in the production of a go…
Free Trade
No protection on goods from other nations (international trad…
Benefits of Free Trade
1. Allows specialization of resources increasing output ... 2. I…
131 terms
IB Economics Definitions
Abnormal profits
Absolute poverty
Administrative barriers
Aggregate demand
refer to a situation where all costs, including opportunity c…
This involves incomes that are at or below a minimum income l…
government intervention in order to restrict trade between co…
is the total spending in an economy consisting of consumption…
Abnormal profits
refer to a situation where all costs, including opportunity c…
Absolute poverty
This involves incomes that are at or below a minimum income l…
66 terms
IB Economics terminology
Economics
Goods
Services
Needs
social science, which is a study of people in society and how…
physical objects that are capable of being touched (tangible)
intangible things that cannot be touched
things that we must have to survive
Economics
social science, which is a study of people in society and how…
Goods
physical objects that are capable of being touched (tangible)
27 terms
IB Economics- chapter 12
Negative externalities of production/e…
Governments solutions to negative exte…
Positive externalities of production/e…
Governments actions to enhance positiv…
These occur when the production of a good or service creates…
Government could tax the firm to increase the firm's private…
These occur when the production of a good or service creates…
Government could subsidize the firms that contribute to a ben…
Negative externalities of production/e…
These occur when the production of a good or service creates…
Governments solutions to negative exte…
Government could tax the firm to increase the firm's private…
35 terms
IB Economics SL - International Economics
anti-dumping
appreciation
balance of payments
barriers to trade
Legislation to protect an economy against the importing of a…
An increase in the value of a country's currency in a floatin…
The accounting record of all transactions (debits and credits…
Anything which prevents free trade between two countries, e.g…
anti-dumping
Legislation to protect an economy against the importing of a…
appreciation
An increase in the value of a country's currency in a floatin…
42 terms
IB Economics HL - International Economics
absolute advantage
anti-dumping
appreciation
balance of payments
Where a country is able to produce more output than other cou…
Legislation to protect an economy against the importing of a…
An increase in the value of a country's currency in a floatin…
The accounting record of all transactions (debits and credits…
absolute advantage
Where a country is able to produce more output than other cou…
anti-dumping
Legislation to protect an economy against the importing of a…
Economics IB HL Grade 11
Basic problem
Buyer's market
Capital goods
Capitalist economy
There are infinite wants but finite (scarce) resources with w…
A market that favours buyers because supply is plentiful rela…
Producer or capital goods such as plant (factories) and machi…
Economic system organised along capitalist lines uses market…
Basic problem
There are infinite wants but finite (scarce) resources with w…
Buyer's market
A market that favours buyers because supply is plentiful rela…
32 terms
IB Economics
Analyse
Apply
Calculate
Comment
AO2 Break down in order to bring out the essential elements o…
AO2 Use an idea, equation, principle, theory or law in relati…
AO4 Obtain a numerical answer showing the relevant stages in…
AO2 Give a judgment based on a given statement or result of a…
Analyse
AO2 Break down in order to bring out the essential elements o…
Apply
AO2 Use an idea, equation, principle, theory or law in relati…
42 terms
IB Economics HL - International Economics
absolute advantage
anti-dumping
appreciation
balance of payments
Where a country is able to produce more output than other cou…
Legislation to protect an economy against the importing of a…
An increase in the value of a country's currency in a floatin…
The accounting record of all transactions (debits and credits…
absolute advantage
Where a country is able to produce more output than other cou…
anti-dumping
Legislation to protect an economy against the importing of a…
65 terms
IB Economics HL: Macro Economics
Injection
Leakage
Consumption (C)
Investment (I)
An injection is an addition to the circular flow that does no…
Subtractions from the circular flow
The total spending on domestic goods or services by households
Spending by firms in order to add to their capital stock
Injection
An injection is an addition to the circular flow that does no…
Leakage
Subtractions from the circular flow
42 terms
IB Economics
Opportunity cost
Production Possibility Curve/Frontier
Product market
Resource market
Second best alternative's benefits foregone.
Graph that shows the quantity of 2 products that can be produ…
Where households buy g&s we desire from firms.
Where firms buy econ resources to make their products.
Opportunity cost
Second best alternative's benefits foregone.
Production Possibility Curve/Frontier
Graph that shows the quantity of 2 products that can be produ…
IB Economics
Demand
Demand Schedule
Demand Curve
Law of Demand
The quantity of a good or service that consumers are willing…
the quantity demanded at each price point
Curve on a graph that shows the quantity demanded at each pri…
"As the price of a product falls the quantity demanded of the…
Demand
The quantity of a good or service that consumers are willing…
Demand Schedule
the quantity demanded at each price point
51 terms
IB Economics
Opportunity cost
Production Possibility Curve/Frontier
Product market
Resource market
Second best alternative's benefits foregone.
Graph that shows the quantity of 2 products that can be produ…
Where households buy g&s we desire from firms.
Where firms buy econ resources to make their products.
Opportunity cost
Second best alternative's benefits foregone.
Production Possibility Curve/Frontier
Graph that shows the quantity of 2 products that can be produ…
157 terms
IB Economics HL Terms
Actual output
Ad Valorem Taxes
Allocative efficiency
Cap and Trade Scheme
The quantity of output actually produced by an economy.
Taxes calculated as a fixed percentage of the price of the go…
An allocation of resources that results in producing the comb…
A scheme in which a government authority sets a limit or 'cap…
Actual output
The quantity of output actually produced by an economy.
Ad Valorem Taxes
Taxes calculated as a fixed percentage of the price of the go…
IB Economics - Foundations of Economics - Chapter 1
Resources are limited
Resources
Factors of production
Scarcity
Why is it impossible for societies and the people within them…
inputs used to produced goods and services wanted by people.
Land, human labour, capital and entrepreneurial skills/enterp…
This is the situation in which available resources, or factor…
Resources are limited
Why is it impossible for societies and the people within them…
Resources
inputs used to produced goods and services wanted by people.
IB Economics Economic development
Define economic growth.
Sources of economic growth.
Define economic development.
Relationship between economic growth a…
Increase in real output of an economy over time.
Increase in quantity or quality of ... •NATURAL FACTORS... •HUMAN C…
•Improvement in welfare measured from a number of viewpoints…
1.HIGHER INCOMES: ... •improves standards of living... •depends on…
Define economic growth.
Increase in real output of an economy over time.
Sources of economic growth.
Increase in quantity or quality of ... •NATURAL FACTORS... •HUMAN C…
92 terms
IB Economics HL - Microeconomics
ad valorem tax
allocative efficiency
barriers to entry
break-even price
An indirect tax where a given percentage is added to the pric…
Occurs where the marginal social cost of producing a good is…
Obstacles that prevent a new firm from entering a market, suc…
The price where average revenue is equal to average total cos…
ad valorem tax
An indirect tax where a given percentage is added to the pric…
allocative efficiency
Occurs where the marginal social cost of producing a good is…
8 terms
IB Economics: Diagrams
Change in Quantity Supplied
Scarcity
Allocative Efficiency
Price Inelastic Demand
Due to a change in Demand.
At P1, Qs < Qd
Community Surplus is maximized at P*
An increase in price increases total revenue, and vice versa
Change in Quantity Supplied
Due to a change in Demand.
Scarcity
At P1, Qs < Qd
64 terms
IB Economics SL - Macroeconomics
aggregate demand
aggregate supply
automatic stabilisers
balanced budget
Total spending in the economy, made up of consumption, invest…
The total amount of domestic goods and services supplied by b…
Features of government fiscal policy, e.g. unemployment benef…
A situation that exists when planned government spending is e…
aggregate demand
Total spending in the economy, made up of consumption, invest…
aggregate supply
The total amount of domestic goods and services supplied by b…
9 terms
IB Economics December 9th
Types of Fiscal Policy
Automatic spending
Discretionary spending
Government expenditure multiplier
Discretionary and Automatic.
-80% is that which is the results of commitments made from pr…
Federal spending on programs that are controlled through the…
Magnification effect of a change in government expenditure on…
Types of Fiscal Policy
Discretionary and Automatic.
Automatic spending
-80% is that which is the results of commitments made from pr…
48 terms
IB Economics SL - Microeconomics
ad valorem tax
allocative efficiency
ceteris paribus
common access resources
An indirect tax where a given percentage is added to the pric…
Occurs where the marginal social cost of producing a good is…
A latin expression meaning 'let all other things remain equal…
Resources which have properties similar to public goods in th…
ad valorem tax
An indirect tax where a given percentage is added to the pric…
allocative efficiency
Occurs where the marginal social cost of producing a good is…
68 terms
IB Economics HL - Macroeconomics
aggregate demand
aggregate supply
automatic stabilisers
balanced budget
Total spending in the economy, made up of consumption, invest…
The total amount of domestic goods and services supplied by b…
Features of government fiscal policy, e.g. unemployment benef…
A situation that exists when planned government spending is e…
aggregate demand
Total spending in the economy, made up of consumption, invest…
aggregate supply
The total amount of domestic goods and services supplied by b…
92 terms
IB Economics HL - Microeconomics
ad valorem tax
allocative efficiency
barriers to entry
break-even price
An indirect tax where a given percentage is added to the pric…
Occurs where the marginal social cost of producing a good is…
Obstacles that prevent a new firm from entering a market, suc…
The price where average revenue is equal to average total cos…
ad valorem tax
An indirect tax where a given percentage is added to the pric…
allocative efficiency
Occurs where the marginal social cost of producing a good is…
IB Economics International Economics
Define international trade.
Identify and explain the gains from tr…
Define and give examples of specializa…
Describe the objectives and functions…
Exchange of goods and services between countries.
Lower prices, Greater choice, differences in resources, econo…
When firms are large, individuals may specialize in specific,…
WTO is an international organization that sets the rules for…
Define international trade.
Exchange of goods and services between countries.
Identify and explain the gains from tr…
Lower prices, Greater choice, differences in resources, econo…
28 terms
IB Economics - 00 - Foundations to Economics
Need
Want
Economics
Goods
something like air, food, or shelter that is necessary for su…
an item that we desire but is not essential to survival
study of how humans make decisions and choices under unlimite…
tangible / physical objects such as clothes or shoes
Need
something like air, food, or shelter that is necessary for su…
Want
an item that we desire but is not essential to survival
10 terms
IB Economics
price elasticity of demand (PED)
income elasticity of demand (YED)
cross elasticity of demand (XED)
importance of PED for business organiz…
measures the consumer's responsiveness to a change of a price…
measures the consumer's responsiveness for a particular good…
measures the consumer's responsiveness of one good in regards…
enables the business in general and the the monopolists in pa…
price elasticity of demand (PED)
measures the consumer's responsiveness to a change of a price…
income elasticity of demand (YED)
measures the consumer's responsiveness for a particular good…
29 terms
IB ECONOMICS
Scarcity
Trade-off
Choice
Opportunity Cost
Condition when wants are greater than the resources available…
All other alternatives given up when a choice is made
Picking between two or more options
The value of the next best alternative (2nd choice) that is g…
Scarcity
Condition when wants are greater than the resources available…
Trade-off
All other alternatives given up when a choice is made
IB Economics
market
limitations of the term market
product markets
factor/resource markets
an arrangement where people gather to buy and sell goods
- they must convey information about price, quantity, and qua…
sell goods and services
sell factors of production/resources
market
an arrangement where people gather to buy and sell goods
limitations of the term market
- they must convey information about price, quantity, and qua…
27 terms
IB Economics: Macroeconomics
Macroeconomics
Circular Flow of Income
Leakages
Injections
the branch of economics that studies the overall working of a…
economic model that pictures income as flowing continuously b…
withdrawals from an economy's circular flow which include sav…
additions to an economy's circular flow which include investm…
Macroeconomics
the branch of economics that studies the overall working of a…
Circular Flow of Income
economic model that pictures income as flowing continuously b…
15 terms
IB Economics: intro
Scarcity
Opportunity Cost
Factors of Production
Land
the condition that results from limited resources combined wi…
Cost of the next best alternative use of money, time, or reso…
resources of land, labor, capital, and entrepreneurship used…
the physical location where production occurs. Includes bodie…
Scarcity
the condition that results from limited resources combined wi…
Opportunity Cost
Cost of the next best alternative use of money, time, or reso…
131 terms
IB Economics
Economics
Microeconomics
Macroeconomics
Scarcity
...
...
...
...
Economics
...
Microeconomics
...
7 terms
Supply - IB HL Economics
supply
Law of supply
Supply curve relationship
Draw a supply curve
a summary of the behaviour of producers in a market
Positive, direct relationship ... At higher prices, producers ar…
a supply curve shows the direct relationship between the pric…
supply
a summary of the behaviour of producers in a market
Law of supply
Positive, direct relationship ... At higher prices, producers ar…
35 terms
IB1Mirco Economics: Markets
Market
Demand
Supply
The law of Demand
A place where producers and consumers meet to make economic t…
Quantity of a good/service that consumers are willing/able to…
Quantity of a good/service that producers are willing/able to…
When the price of a good increases, the quantity demanded dec…
Market
A place where producers and consumers meet to make economic t…
Demand
Quantity of a good/service that consumers are willing/able to…
68 terms
IB Economics HL - Macroeconomics
aggregate demand
aggregate supply
automatic stabilisers
balanced budget
Total spending in the economy, made up of consumption, invest…
The total amount of domestic goods and services supplied by b…
Features of government fiscal policy, e.g. unemployment benef…
A situation that exists when planned government spending is e…
aggregate demand
Total spending in the economy, made up of consumption, invest…
aggregate supply
The total amount of domestic goods and services supplied by b…
33 terms
IB Economics Command Terms
Analyze
Apply
Calculate
Comment
Break down in order to bring out the essential elements or st…
Use an idea, equation, principle, theory or law in relation t…
Obtain a numerical answer showing the relevant stages in the…
Give a judgment based on a given statement or result of a cal…
Analyze
Break down in order to bring out the essential elements or st…
Apply
Use an idea, equation, principle, theory or law in relation t…
27 terms
IB Economic : Government Intervention
Subsidy
Why do government subsidise a product?
What is P(1), P(E), P(SUB), Q(E), Q(SUB)
Price Ceiling
payment from the government to an individual/firm for the pur…
1) To increase the consumption of some goods by lowering the…
P(1) : A price producers get... P(E) : Price at equilibrium... P(SU…
- maximum legally allowable price for a good, set by a govern…
Subsidy
payment from the government to an individual/firm for the pur…
Why do government subsidise a product?
1) To increase the consumption of some goods by lowering the…
16 terms
Demand IB economics
market
ceteris paribus
Law of demand
relationship between consumer's demand…
an institution which permits interaction between buyers and s…
all other factors remaining the same
Inverse relationship between price per unit and quantitiy dem…
Demand curve can refer to either a consumer or the market. Ma…
market
an institution which permits interaction between buyers and s…
ceteris paribus
all other factors remaining the same
11 terms
IB Economics
Profit maximisation
Profit maximisation equation
Revenue maximisation
Revenue maximisation equation
Level of output where profit is maximised
Marginal cost = Marginal revenue
...
MR=0... PED=1... Total revenue is maximised
Profit maximisation
Level of output where profit is maximised
Profit maximisation equation
Marginal cost = Marginal revenue
IB Economics
What is economics?
What does limited resources lead to?
Define Opportunity Cost.
Allocation.
The study of how people try to satisfy their unlimited wants…
Scarcity
The next best option.
How resources are distributed. (first come, first serve or wh…
What is economics?
The study of how people try to satisfy their unlimited wants…
What does limited resources lead to?
Scarcity
48 terms
IB Economics SL - Microeconomics
ad valorem tax
allocative efficiency
ceteris paribus
common access resources
An indirect tax where a given percentage is added to the pric…
Occurs where the marginal social cost of producing a good is…
A latin expression meaning 'let all other things remain equal…
Resources which have properties similar to public goods in th…
ad valorem tax
An indirect tax where a given percentage is added to the pric…
allocative efficiency
Occurs where the marginal social cost of producing a good is…
268 terms
IB Economics
Scarcity
Opportunity Cost
Factors of Production
Land
the condition that results from limited resources combined wi…
Cost of the next best alternative use of money, time, or reso…
resources of land, labor, capital, and entrepreneurship used…
the physical location where production occurs. Includes bodie…
Scarcity
the condition that results from limited resources combined wi…
Opportunity Cost
Cost of the next best alternative use of money, time, or reso…
54 terms
IB Economics Economic Development
Define economic growth.
Sources of economic growth.
Define economic development.
Relationship between economic growth a…
Increase in real output of an economy over time.
Increase in quantity or quality of ... •NATURAL FACTORS... •HUMAN C…
•Improvement in welfare measured from a number of viewpoints…
1.HIGHER INCOMES: ... •improves standards of living... •depends on…
Define economic growth.
Increase in real output of an economy over time.
Sources of economic growth.
Increase in quantity or quality of ... •NATURAL FACTORS... •HUMAN C…
18 terms
PED - IB economics notes
PED definition
PED formula
If price goes up then quantity demande…
If PED>1
The reponsiveness of quantity demanded to a change in price
PED is always negative in mathematical calculations but treat…
Demand is price elastic. Small change in price leads to a pro…
PED definition
The reponsiveness of quantity demanded to a change in price
PED formula
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