Scribd
Upload
281 views1 page

Exam Practice Questions: 2.1: Economic Activity: IB Economics

The document contains sample exam questions from the IB Economics Paper 1 exam on the topic of the level of overall economic activity. The questions ask students to: [1] Use a diagram to explain how the size of the circular flow changes with the relative size of injections and leakages; [2] Use a diagram to show that income, expenditure, and output flows are numerically equivalent; [3] Use the five sector circular flow model to explain the relationships between sectors and the level of economic activity; and [4] Identify the four factors of production and their payments that make up the income flow.

Uploaded by

SOURAV MONDAL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
281 views1 page

Exam Practice Questions: 2.1: Economic Activity: IB Economics

The document contains sample exam questions from the IB Economics Paper 1 exam on the topic of the level of overall economic activity. The questions ask students to: [1] Use a diagram to explain how the size of the circular flow changes with the relative size of injections and leakages; [2] Use a diagram to show that income, expenditure, and output flows are numerically equivalent; [3] Use the five sector circular flow model to explain the relationships between sectors and the level of economic activity; and [4] Identify the four factors of production and their payments that make up the income flow.

Uploaded by

SOURAV MONDAL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

IB Economics – The Level of Overall Economic Activity

Exam Practice Questions: 2.1: Economic Activity

IB Economics: www.IBDeconomics.com

2.1 ECONOMIC ACTIVITY: EXAM PRACTICE QUESTIONS

Answer the questions that follow.

1. IB ECONOMICS PAPER 1 EX AMINATION QUESTIONS

1. Using a diagram, explain how the size of the circular flow will change depending on the relative
size of injections and leakages. [10 marks]

2. Using a diagram, explain that the income flow is numerically equivalent to the expenditure flow
and the value of output flow. [10 marks]

3. Using the five sector circular flow of income model, explain the relationships between the five
sectors and the level overall economic activity. [10 marks]

4. Identify the four factors of production and their respective payments (rent, wages, interest and
profit) and explain that these constitute the income flow in the model. [10 marks]

Source: www.IBDeconomics.com

You might also like