Which of the following is a normative statement?

:br

::indent
- A. $\hspace{1em}$ The inflation rate is 2$\%$ higher than last year

- B. $\hspace{1em}$ The economy has grown faster this year than last year
- C. $\hspace{1em}$ The unemployment rate has fallen by 5$\%$
- D. $\hspace{1em}$ The richest 10$\%$ of people own too much wealth 


Which of the following falls within the realm of normative economics?

:br

::indent
- A. $\hspace{1em}$ The use of value judgments

- B. $\hspace{1em}$ The use of models 
- C. $\hspace{1em}$ The use of logic
- D. $\hspace{1em}$ The possibility of refutation


Identify the positive statement from the following choices: 

:br

::indent
- A. $\hspace{1em}$ Public education is provided free by the government.

- B. $\hspace{1em}$ Education must be provided free of charge by the government.
- C. $\hspace{1em}$ The government budget for public education must be increased.
- D. $\hspace{1em}$ Public education ought to be better than private education.


Define the term $\text{\textquotedblleft}$ceteris paribus$\text{\textquotedblright}$.

:br

::indent

- A. $\hspace{1em}$ All other things are held constant forever.

- B. $\hspace{1em}$ All other things are held constant.
- C. $\hspace{1em}$ All other things are unimportant.
- D. $\hspace{1em}$ All other things are equally important.


With regards to the origin of economic ideas in a historical context, which of the following happened in the 19th century?

:br

::indent
- A. $\hspace{1em}$ The Keynesian revolution

- B. $\hspace{1em}$ The Marxist critique of classical economic thought
- C. $\hspace{1em}$ The rise of macroeconomic policy
- D. $\hspace{1em}$ The monetarist/new classical counter revolution


Which of the following is a feature of the $\text{\textquoteleft}$circular economy' which has become more popular in 21st-century economic thought?

:br

::indent
- A. $\hspace{1em}$ Emphasizing repair, refurbishment, and remanufacture

- B. $\hspace{1em}$ Designing products to be replaced after a while 
- C. $\hspace{1em}$ Extracting materials for all new products from the environment
- D. $\hspace{1em}$ Once used, products end up in landfill sites


1. Explain why economists employ the *ceteris paribus* assumption when modelling and predicting economic activity. :marks[2]

:br

2. Comment on John Maynard Keynes's impact on the government’s role in the economy. :marks[2]

:br

3. Distinguish ways in which Marxists and Keynesians view the role of government in economic activity. Fill in the blanks in the table below. :marks[4]

    :::center
    | | Marxists | Keynesians |
    | :- | :-: | :-: |
    | Economic system | | free market economy |
    | Response to *laissez-faire* | the government makes all economic decisions | |
    | Significance of price | | reflects demand and supply |
    | Ownership of factors of production| | private individuals and corporations|
    :::

Say's Law of Markets can be summarised as $\text{\textquoteleft}$supply creates its own demand'. What does this economic principle mean?

:br

::indent
- A. $\hspace{1em}$ If a product is supplied, then households will immediately buy it.

- B. $\hspace{1em}$ If a product is supplied, then households will eventually want it.
- C. $\hspace{1em}$ If a product is supplied, then households will have the income to demand it.
- D. $\hspace{1em}$ If a product is supplied, then households will be dependent on it.


Maximisation of utility assumes:

:br

::indent
- A. $\hspace{1em}$ consumers are rational and that their purchases of goods and services will maximise their satisfaction

- B. $\hspace{1em}$ producers are rational and that they would always maximise their profits
- C. $\hspace{1em}$ governments are rational, and they would always maximise their tax revenues.
- D. $\hspace{1em}$ consumers make choices out of habit


Economic Methodology, History of Economic Thought

These case studies are designed to help IB Economics Higher Level students prepare for Paper 2 and Paper 3. The case studies will range from full Paper 2 and Paper 3-style questions to smaller case studies focused on particular syllabus topics and subtopics. Each case study includes sample answers and markschemes to help guide you in answering these HL papers appropriately. 

Original Data Response Questions to develop skills in analysing and evaluating data that you need for Paper 2 and 3. 

Foundations

Foundations (all)

EC0162

EC0012

EC0160

EC0007

EC0021

EC0014

EC0158

EC0366

EC0370

EC0165

EC0166

EC0161

EC0023

Scarcity, Choice, Opportunity Cost, Production Possibilities Curve, Circular Flow Model

Scarcity, Choice, and the PPC

EC0159

EC0178

EC0011

EC0013

EC0016

EC0157

EC0179

EC0015

EC0641

How Economists Approach the World

EC0022

EC0163

EC0164

EC0024

EC0462

Microeconomics Part I

Demand, Supply, and Equilibrium

EC0218

EC0219

EC0216

EC0032

EC0136

EC0223

EC0220

EC0217

EC0133

EC0425

EC0451

EC0446

EC0376a

Elasticities

EC0228

EC0042

EC0034

EC0037

EC0169

EC0167

EC0502hl

EC0374

EC0368

EC0369

EC0376b

Law of Demand, Law of Supply, Determinants of Demand & Supply, Equilibrium, the Price Mechanism, Allocative Efficiency

Demand & Supply, Equilibrium

EC0135

EC0031

EC0033

EC0017

EC0134

EC0018

EC0019

EC0020

EC0215

EC0377a

EC0221

EC0222

EC0224

EC0460

EC0375

EC0559

EC0569

EC0570

EC0571

EC0642

EC0648

Price Elasticity of Demand (PED), Income Elasticity of Demand, Price Elasticity of Supply (PES)


IB Economics HL - Questionbank

How Economists Approach the World

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

#1 IB Math Resource

34% Grade Increase

80% of IB Students

More IB Econ HL Resources

Questionbank

Data Response Questions

Practice Exams

Past Papers