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Economics- DP

Economics- DP

Original price was: $99.00.Current price is: $49.00.

IB Economics explores how societies allocate scarce resources to meet needs and wants, combining theory with real-world applications. The course develops analytical, quantitative, and evaluative skills while encouraging students to engage with contemporary global issues such as inequality, sustainability, and development. Standard Level (SL) students cover the four main sections of microeconomics, macroeconomics, international economics, and development economics. Higher Level (HL) students study the same topics in greater depth, with added emphasis on quantitative methods, advanced theory of the firm, macroeconomic models, and global trade analysis. The course equips students to understand economic decision-making, evaluate policy choices, and critically analyse their impact on individuals, firms, and nations.

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IB Economics (SL & HL)

Section 1: Microeconomics

Focus: how individuals, firms, and markets allocate resources.

  • Basic Concepts
    • Scarcity, choice, opportunity cost
    • Positive vs normative economics
  • Demand and Supply
    • Law of demand and supply
    • Movements along vs shifts of curves
    • Price elasticity of demand (PED)
    • Price elasticity of supply (PES)
    • Cross elasticity of demand (XED)
    • Income elasticity of demand (YED)
  • Market Equilibrium
    • Price mechanism & market efficiency
    • Consumer surplus, producer surplus, allocative efficiency
  • Government Intervention
    • Indirect taxes, subsidies, price controls (ceilings & floors)
    • Market outcomes & welfare effects
  • Market Failure
    • Externalities (positive, negative, production, consumption)
    • Public goods, common pool resources
    • Information asymmetry
    • Market power & monopoly
  • Theory of the Firm (HL extension)
    • Revenues, costs, and profits
    • Perfect competition, monopoly, monopolistic competition, oligopoly
    • Price discrimination
    • Efficiency concepts (productive, allocative, dynamic, x-inefficiency)

Section 2: Macroeconomics

Focus: economy-wide issues, policies, and objectives.

  • National Income Accounting
    • GDP, GNI, Green GDP
    • Real vs nominal values
    • Limitations of GDP
  • Aggregate Demand and Aggregate Supply (AD–AS model)
    • Determinants of AD & AS
    • Short-run vs long-run AS
    • Equilibrium and disequilibrium
  • Macroeconomic Objectives
    • Economic growth
    • Low unemployment (types: frictional, structural, seasonal, cyclical)
    • Price stability (inflation, deflation, disinflation)
    • Balance of payments stability
    • Equity in income distribution
  • Government Policies
    • Fiscal policy (taxation, spending, budget balance)
    • Monetary policy (interest rates, money supply)
    • Supply-side policies
  • HL extensions
    • Keynesian vs Monetarist perspectives
    • Phillips Curve (short run, long run)
    • Inflationary and deflationary gaps

Section 3: International Economics

Focus: trade and financial flows between nations.

  • International Trade
    • Absolute vs comparative advantage
    • Free trade vs protectionism (tariffs, quotas, subsidies, administrative barriers)
    • Trading blocs (FTA, customs union, common market, monetary union)
  • Balance of Payments
    • Current account, capital account, financial account
    • Deficits and surpluses
  • Exchange Rates
    • Floating vs fixed exchange rate systems
    • Causes of appreciation/depreciation
    • Government intervention in currency markets
  • Terms of Trade
    • Calculating TOT
    • Causes of changes in TOT
    • Effects on economy
  • HL extensions
    • Marshall–Lerner condition & J-curve
    • Monetary union benefits & limitations

Section 4: Development Economics

Focus: challenges and policies in raising living standards.

  • Sources of Economic Growth & Development
    • Natural, human, physical capital
    • Institutions and governance
  • Characteristics of Developing Countries
    • Poverty cycle, dual economy, inequality
  • Barriers to Development
    • Domestic: poor infrastructure, savings gap, corruption, health & education deficits
    • International: trade barriers, debt, dependency
  • Strategies for Development
    • Market-led vs interventionist strategies
    • Microfinance
    • Aid vs trade
    • Role of international organizations (WTO, IMF, World Bank, NGOs)
  • Measuring Development
    • HDI, GNI per capita, literacy rates, life expectancy
    • Gender inequality measures
  • HL extensions
    • Lorenz curve & Gini coefficient
    • Terms of trade impact on development
    • Debt rescheduling and structural adjustment programmes

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