Unit 1: Review terms

Review of terms for unit 1: Foundation of economics

I have included this page, which contains a PDF handout as a simple revision exercise.  I find that many IB students get a degree of comfort from these short summary handouts.

 

1. Complete the following sentences by filling in the missing words:

Economics is a     science because it tries to explain    behaviour rather than provide an explanation of natural events.

 human  physical  social 

 

 

2. Complete the following sentences by filling in the missing words:

In economics much of the     collected in the subject is    rather than quantitative. 

quantitative  resource  data  qualitative 

 

 

3. Complete the following sentences by filling in the missing words:

Economic statements which are factually     are called     economic statements.

 normative  positive  subjective  provable 

 

 

4. Complete the following sentences by filling in the missing words:

Economic statements which     be proven are called     economic statements.

 normative  economic  cannot  can 

 

 

5. Complete the following sentences by filling in the missing words:

  utility measures the additional pleasure gained from     one extra     of a good or service.

 consuming  Additional  Marginal  Total  unit 

 

 

6. Complete the following sentences by filling in the missing words:

The     pleasure gained from consuming a good or service is called     

 marginal  utility  total  total 

 

 

7. Complete the following sentences by filling in the missing words:

As a person consumes more and more of a good or service, the     enjoyed        consumed falls.  This is called the law of         utility.

 utility  diminishing  reducing  marginal  total  unit  per  consumption 

 

 

8. Complete the following sentences by filling in the missing words:

The basic economic question can be defined as limited     and unlimited    .

 needs  resources  wants 

 

 

9. Complete the following sentences by filling in the missing words:

      represents the next best option foregone.

 cost  Opportunity  Real 

 

 

10. Complete the following sentences by filling in the missing words:

A        can be described as any place where     and sellers meet in order to enact a transaction.

 buyers  retailers  place  market  sellers 

 

 

11. Complete the following sentences by filling in the missing words:

The three different types of     system, recognised by economists are    , planned and free market systems.

 mixed  market  economic  combined 

 

 

12. Complete the following sentences by filling in the missing words:

The most effective system is believed to be the     economic system, as it combines the best of both planned and free market economic systems.  This economic system consists of two sectors – the     sector and the   .

 public  private  mixed  primary  secondary  tertiary  economic 

 

 

 

Total Score:

Available as a PDF file at:  Review terms

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