1. Introduction to Economics

1.1 What is Economics?

Economics as a Social Science

The Problem of Choice

The Production Possibilities Curve Model (PPC)

Modelling the Economy

1.2 How do Economists Approach the World?

Economic Methodology

Economic Thought

2. Microeconomics

2.1 Demand

Demand, Price & Quantity

Non-Price Determinants of Demand

2.2 Supply

Supply, Price & Quantity

Non-Price Determinants of Supply

2.3 Competitive Market Equilibrium

Market Equilibrium & Disequilibrium

Functions of the Price Mechanism

Consumer & Producer Surplus

2.4 Critique of the Maximizing Behaviour of Consumers & Producers

Rational Consumer Choice

Behavioural Economics in Action

Business Objectives

2.5 Elasticities of Demand

Price Elasticity of Demand (PED)

The Significance of PED

Income Elasticity of Demand (YED)

2.6 Price Elasticity of Supply (PES)

Understanding Price Elasticity of Supply (PES)

2.7 The Role of Government in Microeconomics

Reasons for Government Intervention in Markets

Government Intervention: Indirect Taxes & Subsidies

Government Intervention: Price Controls

Government Intervention: Direct Provision, Regulation & Nudges

2.8 Market Failure: Externalities & Common Pool (Access) Resources

Market Failure

Negative Externalities

Positive Externalities

Common Pool (Access) Resources

Government Intervention to Address Market Failure

Other Interventions to Address Market Failure

2.9 Market Failure: Public Goods

Public Goods

2.10 Market Failure: Asymmetric Information

Asymmetric Information

2.11 Market Failure: Market Power

An Introduction to Market Structures

Profit Maximisation

Market Power & Perfect Competition

Market Power & Monopolies

Market Power & Oligopolies

Market Power & Monopolistic Competition

Market Power & Government Intervention

2.12 The Market’s Inability to Achieve Equity

Markets Cause Inequality

3. Macroeconomics

3.1 Measuring Economic Activity

National Income & the Circular Flow of Income

National Income Terminology & Calculations

The Business Cycle

Appropriateness of Using GDP/GNI to Measure Well-being

Alternative Measures of Well-being

3.2 Variations in Economic Activity (AD & AS)

Aggregate Demand (AD)

Short-run Aggregate Supply (SRAS)

Alternative Views of Aggregate Supply (AS)

Shifts of the Long-run Aggregate Supply (LRAS)

Macroeconomic Equilibrium

3.3 Macroeconomic Objectives

An Introduction to Macroeconomic Objectives

Economic Growth

Low Unemployment

Low & Stable Rate of Inflation

Sustainable Levels of Government Debt

Potential Conflicts Between Macroeconomic Objectives

3.4 Inequality & Poverty

Measuring Inequality & Poverty

Causes Of Inequality & Poverty

Using Taxation to Reduce Inequality & Poverty

Other Policies to Reduce Inequality & Poverty

3.5 Demand Management: Monetary Policy

An Overview of Monetary Policy

The Tools of Monetary Policy

3.6 Demand Management: Fiscal Policy

An Overview of Fiscal Policy

The Keynesian Multiplier

An Evaluation of Fiscal Policy

3.7 Supply-Side Policies

An Overview of Supply-Side Policies

The Effectiveness of Supply-Side Policies

4. The Global Economy

4.1 Benefits of International Trade

The Advantages of Free Trade

Absolute & Comparative Advantage

4.2 Types of Trade Protection

Tariffs

Quotas

Export Subsidies

Administrative Barriers

4.3 Arguments for & Against Trade Protection

Arguments for & Against Trade Protection

4.4 Economic Integration

Understanding Economic Integration

Types of Trading Blocs

The World Trade Organisation (WTO)

4.5 Exchange Rates

Types of Exchange Rate Systems

Causes & Consequences of Exchange Rate Fluctuations

Fixed Versus Floating Exchange rate Systems

4.6 Balance of Payments

Components of The Balance Of Payments

Exchange Rates & the Balance Of Payments

Persistent Current Account Deficits

Marshall-Lerner & J-Curve

Persistent Current Account Surpluses

4.7 Sustainable Development

The Sustainable Development Goals

The Relationship Between Sustainability & Poverty

4.8 Measuring Economic Development

Single Indicators of Development

Composite Indicators of Development

Evaluating the Different Approaches

4.9 Barriers to Economic Growth & Development

Poverty Traps

Economic, Political & Social Barriers

4.10 Economic Growth & Development Strategies

Trade Strategies, Diversification & Social Enterprise

Market-Based & Interventionist Policies

Merit Goods & Inward Foreign Direct Investment

Foreign Aid & Development Assistance

Institutional Change

Evaluating Market Orientated Approaches Versus Government Intervention

Progress Towards Sustainable Development Goals

Exam boards

• DP IB Economics: SL

Study tools

• DP IB Economics · Exam Questions
• DP IB Economics · Past Papers

Related links

• IB Economics · Revision Notes
• IB Economics · Exam Questions
• IB Economics · Past Papers