Standard & Higher Level
Starting September 2008
What is Economics and why is it
Can we prevent global warming?
Can we feed an ever growing population?
Is it possible to bring prosperity to all?
Will there be wars fought over oil and food in the future?
In a world of poverty, environmental degradation, conflict, inequality, and turmoil,
it is important that we use the proper tools for examining the issues that confront us.
Economics is the study of choices – how to best make them and how we can best
meet our needs.
In the long run, free trade benefits everyone; in the short run it is bound to
produce much pain. Hobhouse, Henry
It is the interest of the commercial world that wealth should
be found everywhere Burke, Edmund
What will you study in IB
The nature of the economic problem: scarcity,
choice, and cost
Markets, efficiency, and market failure
Economies and economic organisation
Business economics: firms and
inflation, and growth
The economics of development
Who is IB Economics suitable for?
It is designed to accommodate pupils who:
Are interested in politics
Want to understand the news
Are interested in current affairs and issues
Are concerned about the environment, equality and
Who want to be educated voters
Who are interested in how government
You do not need previous experience
or coursework in Economics!!!!
IB Economics assumes students have
no previous economic experience.
Core Themes HL Extension
Introduction to economics Taxes and tax incidence
Microeconomics Theory of the Firm
Markets Costs and profits
Elasticities Perfect competition
Market Failure Monopoly
National income Monopolistic competition
Development Price discrimination
Macroeconomic models Measuring inflation and
Demand and Supply-side unemployment
policies Multiplier, accelerator
Unemployment Crowding out
Inflation Phillips Curve
Distribution of Income Measuring Distribution of Income
Core Themes HL Extension
International Economics Comparative Advantage
Why Trade? Limitations of the theory
Free Trade and Problems integrating
Protectionism Trade creation and diversion
Economic Integration Marshal-Lerner condition
WTO Measurement of terms of
Balance of Payments trade
Problems with trade
surpluses and deficits
Terms of Trade
Sources of growth and development
Consequences of development
Barriers to growth and development
Growth and development strategies
Evaluating growth strategies
All students will compile a portfolio of commentaries of four news
Each commentary is between 650-750 words.
The commentaries are based on contemporary news articles that
enable the student to analyse the situation
and apply the economic theories and
concepts which best explain the story
reported in the newspaper.
The commentaries are spaced throughout
the two year course.
Online Internet lessons & Activities
Possible Homework Tasks
Individual / pair presentations
Analysis of the news
Data Analysis tasks
Feel free to ask!
There are 10 to the eleventh power stars in the galaxy. That used to be a
huge number. But it’s only a hundred billion. It’s less than the national
deficit! We used to call them astronomical numbers. Now we should call
them economical numbers. Richard Feynman
If all the economists were laid end to end, they'd
never reach a conclusion. Shaw, George Bernard
Ask five economists and you'll get five different
answers (six if one went to Harvard)
Fiedler, Edgar R
While the miser is merely a capitalist gone mad,
the capitalist is a rational miser. Karl Marx
Money is like manure; it's not worth a thing
unless it's spread around encouraging young
things to grow Wilder, Thornton Niven