Unit 1: Introduction to Economics

Topic 1.2: How Do Economists Approach the World? Questions

Practice 20 exam-style questions for IB Economics Topic 1.2. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

1distinguish2 marks
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Distinguish between correlation and causation.
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2define1 mark
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Define the term ceteris paribus.
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31 mark
An economic model is best described as:
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4define2 marks
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Define the term economic model.
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51 mark
The statement "The government should spend more on healthcare" is:
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6define1 mark
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Define the term positive statement.
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71 mark
An economic model is best described as:
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81 mark
The statement "The government should spend more on healthcare" is:
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9define1 mark
2026vault
Define the term ceteris paribus.
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101 mark
The assumption of "ceteris paribus" means:
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11define1 mark
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Define the term normative statement.
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12distinguish2 marks
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Distinguish between a positive statement and a normative statement.
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13distinguish2 marks
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Distinguish between a positive statement and a normative statement.
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14distinguish2 marks
2026vault
Distinguish between correlation and causation.
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15define2 marks
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Define the term economic model.
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16define1 mark
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Define the term normative statement.
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17define1 mark
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Define the term positive statement.
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181 mark
The assumption of "ceteris paribus" means:
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19classify4 marks
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Classify each statement in Table 1 as either positive or normative.
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20explain4 marks
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A government raises interest rates in January but unemployment does not fall by March. Explain one reason why this does not necessarily mean the policy had no effect.
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