Economics IB HL

Economics – Chapter 11 Practice Questions

1. Explain the differences between GDP and GNP/GNI as measures of economic activity.         Gross Domestic Product (GDP) is defined as the total value of all economic production in a country in a given year. GDP measures production within the borders of a country, regardless of who owns the factors of production (FoP), i.e., Ireland’s GDP … Continue reading

Economics IB HL

“Freeconomics The Free Giveaway” Triple A

1. Explain what is meant by the term “freeconomics”. “Freeconomics” is a new philosophy invented by writer Chris Anderson, and his thesis is that more and more goods and services are being provided for free (such as free music/books online, free cellphones, etc.), and businesses which do not follow this trend will most likely fail. 2. How … Continue reading

Economics IB HL

Economics – Chapter 10 Practice Questions

Question 5 (p. 233) 5 a) Explain the differences between monopolistic competition and oligopoly as market structures. There are several key differences between a monopolistically competitive market and an oligopoly. Oligopolies consist of a few large firms which dominate the market, and have the market power but in a monopolistic competition there are many smaller firms … Continue reading