IB Microeconomics definitions Test Quizess With Actual Solutions 2024.

Microeconomics is the study of the behaviour of individual markets - Answer Microeconomics Macroeconomics is the study of how an economy functions as a whole - Answer Macroeconomics Pleasure that an individual derives from the consumption of a good or service - Answer Utility shows the maximum combinations of goods or services that can be produced by an economy in a given time period if all the resources are efficiently and fully used - Answer Production possibilities curve (PPC) assumption that all other variables are held equal when one variable is altered in an economic model - Answer Ceteris paribus economic matters that can be proven right or wrong when the facts are examined - Answer Positive economics Actual output is the production of goods and services achieved in an economy in a given time period - Answer Actual output Potential output is the possible production achievable by an economy if all available factors are employed - Answer Potential output Normative economics refers to economic matters that are based on opinion and can therefore not be proven right or wrong - Answer Normative economics Potential growth is an increase in the quality and/or quantity of the factors of production, represented by an outward shift of the PPC curve - Answer Potential growth