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IB Economics HL – Microeconomics Exam Questions and Answers (latest Update 2024)
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IB Economics HL – Microeconomics Exam Questions and Answers (latest Update 2024)
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IB Economics HL – Microeconomics ExamQuestions and Answers (latest Update
2024)
An indirect tax where a given percentage is added to the
price of a good or service. - Correct Answer ✅ad valorem
tax
Occurs where the marginal social cost of producing a good is
equal to the marginal social benefit of the good to society. In
different words, it occurs where the marginal cost of
producing a good (including any external costs) is equal to
the price that is charged to consumers (P = MC). - Correct
Answer ✅allocative efficiency
Obstacles that prevent a new firm from entering a market,
such as economies of scale, product differentiation, and legal
protection. - Correct Answer ✅barriers to entry
The price where average revenue is equal to average total
cost. Below this price, the firm will shut down in the long run.
- Correct Answer ✅break-even price
A formal agreement among firms in a collusive oligopoly. -
Correct Answer ✅cartel
,IB Economics HL – Microeconomics Exam
Questions and Answers (latest Update
2024)
A latin expression meaning 'let all other things remain equal'
used by economists to develop economic theories or models.
- Correct Answer ✅ceteris paribus
Where a few firms in an oligopoly act together to avoid
competition by resorting to agreements to fix prices or
output. - Correct Answer ✅collusive oligopoly
Resources which have properties similar to public goods in
that it is very difficult or impossible to prevent people from
using or consuming the resource. Therefore, they are
vulnerable to overuse and/or degradation. - Correct Answer
✅common access resources
Goods used in combination with each other, e.g. digital
cameras and memory cards. They have negative cross-price
elasticity. - Correct Answer ✅complementary good
A given percentage increase in the quantity of all factors of
production results in an equal percentage change in output
, IB Economics HL – Microeconomics Exam
Questions and Answers (latest Update
2024)
and thus no change in long-run average costs - Correct
Answer ✅constant returns to scale
The additional benefit or utility received by consumers by
paying a price that is lower than they are willing to pay. -
Correct Answer ✅consumer surplus
An approach taken by firms where they attempt to produce
responsibly or ethically towards the community and
environment, demonstrating a positive impact on society. -
Correct Answer ✅corporate social responsbility
A measure of the responsiveness of the quantity of one good
demanded in response to a change in the price of a related
good. XED = %D in Qd of Good A/%D in price of Good B -
Correct Answer ✅cross price elasticity of demand
Products that are considered to be harmful for people that
would be over-provided or over-consumed in a purely free
market economy. Are generally considered to be products
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