1.2 How do economists approach the world? questions for IB Economics
77 questions on How do economists approach the world?, written by Augment in the style of IB exam papers. Six of them are below in full, to answer on paper.
- IB Economics
- Part of 1 Introduction to economics
- SL and HL
Questions by paper and level
SL and HL questions are for students at either level. HL only questions cover what only HL students study.
| Paper | SL and HL | HL only | All |
|---|---|---|---|
| Paper 1 | 21 | 3 | 24 |
| Paper 2 | 50 | 3 | 53 |
| Every paper | 71 | 6 | 77 |
Counted on
Questions to try
Written by Augment in the style of IB exams, not past papers. Answer them on paper, then check each one against its markscheme with a free account.
Economists frequently disagree about whether governments should raise the national minimum wage.
- (a)
Distinguish between positive economics and normative economics, with reference to the debate over minimum wages.
10 marks
- (b)
Using real-world examples, evaluate the view that raising the minimum wage is the most effective way to reduce poverty.
15 marks
For several decades, Country V operated as a planned economy. Every five years, a central planning committee set output targets for each state-owned factory and farm and fixed the prices of most goods.
Define the term planned economy indicated in bold in the text.
2 marks
The mass unemployment of the Great Depression in the 1930s led John Maynard Keynes to challenge the view that market economies correct themselves.
- (a)
Using an AD/AS diagram, explain Keynes's argument that insufficient aggregate demand can cause persistent unemployment.
10 marks
- (b)
Using real-world examples, evaluate the effectiveness of expansionary fiscal policy in closing a deflationary (recessionary) gap.
15 marks
A ministry of planning in Country A uses a production possibilities curve (PPC) to show the choice between producing food and manufactured goods. Critics argue that the model rests on assumptions that are rarely true in practice.
Explain two assumptions of the production possibilities curve model.
4 marks
In the 1970s many economies experienced high inflation and high unemployment at the same time.
- (a)
Explain why the stagflation of the 1970s led many economists to question Keynesian demand management and to support the monetarist/new classical approach.
10 marks
- (b)
Using real-world examples, evaluate the effectiveness of supply-side policies in reducing both inflation and unemployment.
15 marks
Read the extract and answer the question that follows.
Text A — Mareva bans single-use plastics
[1] Mareva is a small island economy in the Pacific whose economy depends on tourism and fishing. Its beaches and coral reefs are increasingly polluted by plastic waste, much of it from bottles, bags and food containers. Plastic waste damages fish stocks and deters tourists, and the island has only one landfill site, which is almost full.
[2] In 2025 the government banned the import and sale of single-use plastic bags, cutlery, straws and polystyrene food containers. Businesses that break the law face fines. The government argues that the ban will help move the island towards a circular economy, in which products are reused and recycled rather than thrown away.
[3] Supermarkets have switched to paper and reusable bags, and a local firm has started making food containers from coconut fibre. However, street-food sellers complain that alternatives cost three to five times as much, and they have raised prices. Inspectors report that some sellers still use plastic bought informally from traders who smuggle it in. Tourism operators have welcomed the ban, and a beach clean-up group reports a 35 % fall in plastic waste collected in the first six months.
Using information from the text and your knowledge of economics, evaluate the use of a ban on single-use plastics in Mareva.
15 marks
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More questions in Introduction to economics
- 1.1What is economics?
- 1.2How do economists approach the world?This page
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