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How does a market economy answer the basic economic questions?

Through the forces of supply and demand with minimal government intervention.

What does the PPC model show?

The maximum possible output combinations of two goods given available resources and technology.

What does a point inside the PPC represent?

Underutilisation of resources or unemployment.

Define scarcity in economics.

The situation where unlimited wants exceed limited resources.

What is opportunity cost?

The value of the next best alternative foregone when making a choice.

What assumption is made about resources in the PPC model?

Resources are fully employed and used efficiently.

How does a planned economy answer the basic economic questions?

Through centralised government decision-making.

What are the four factors of production?

Land, labour, capital, and entrepreneurship.

What does a bowed-out PPC indicate?

Increasing opportunity cost as more of a good is produced.

How is scarcity linked to sustainability?

Sustainability requires managing scarce resources so future generations can meet their needs.

What is a mixed economy?

An economic system combining elements of market and planned economies.

What does a point outside the PPC represent?

An unattainable combination of goods with current resources and technology.

Name the two main branches of economics.

Microeconomics and macroeconomics.

What three basic economic questions must all economies answer?

What to produce, how to produce, and for whom to produce.

What does movement along the PPC illustrate?

The concept of opportunity cost as more of one good is produced and less of another.

What can cause the PPC to shift outwards?

An increase in resources, better technology, or improved productivity.

List the nine central concepts in IB Economics.

Scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, intervention.

Give an example of a free good.

Air in an unpolluted environment.

What is actual growth versus potential growth in the PPC model?

Actual growth is movement towards the PPC; potential growth is an outward shift of the PPC.

What does it mean to say economics is a social science?

It studies human behaviour in relation to the allocation of scarce resources to satisfy unlimited wants.

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Shanghai’s AI Boom: How China is Expanding the Supply of a Future-Defining Industry

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BP’s Brazil Oil Find Tests the Trade-Offs Between Growth and Sustainability

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Why Does Trump Want Greenland? The Economics below the Ice

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Foreign Phone Sales in China Plunge Amid Rising Local Competition

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Coffee Prices Hit Record Highs as Supply Struggles to Meet Global Demand

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Bill Gates on Taxes: “I should have paid more!”

Iceland’s TikTok Cucumber Shortage

Iceland’s TikTok Cucumber Shortage

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Scotland to Increase Alcohol Minimum Price by 30% in Public Health Push

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New Zealand’s U-Turn on Groundbreaking Smoking Ban

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Apple Braces for Potential Fourth Quarter Revenue Decline Amid Global Challenges

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Rolls-Royce Restructuring: 2,500 Jobs on the Chopping Block!

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Oil Prices Bounce Back as Saudi Arabia Announces Major Output Cuts

Is the government to blame for Indonesia’s surging rice prices?

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Climate change

Africa’s Economic Decline: Devastating Impact of Climate Change

Tesla has its own law of demand – profits soaring despite higher prices!

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World’s major economies to release oil reserves to lower soaring oil prices

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Gas price surge leaving businesses bankrupt and consumers uncertain

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Saudi Aramco profits increase by almost 300%

There could be extreme water scarcity in Egypt this decade

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Groundbreaking new drug for Alzheimer’s is going to come at a cost!

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Union Jack like the one to be painted on the UK Prime Ministers Plane at a cost of £900,000

£900,000 of taxpayer’s money to be spent on painting the PM’s plane

an image to show the increasing demand for ramen

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Image of a coal mine

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We’ve heard about the toilet paper, but what else are people panic buying?

Paper gold: could the price of toilet paper be about to skyrocket?

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Is Germany’s ice wine production the latest victim of global warming?

When supply outstrips demand: American wine at its lowest price in 20 years!

When supply outstrips demand: American wine at its lowest price in 20 years!

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scarcity

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