IB DP Economics Revision Resources- Practice Questions and Notes
IB DP Economics Revision Resources- Practice Questions and Notes
IB DP Economics Revision Resources- Practice Questions and Notes: Prepare for the IB exams with subject-specific practice questions, model answers, and comprehensive revision notes. All topics covered.
IB Economics Revision Resources: Prepare effectively for your exams with a wealth of practice questions covering all core and option topics. Access detailed notes, exam tips, and study guides to maximize your score.
Exam Style Practice Questions, Notes and Past Paper for IBDP Economy
IB DP Economic Study Notes
Unit 1: Introduction to Economics
- Topic 1.1: What is Economics?
- Topic 1.2: How do economists approach the world?
Unit 2: Microeconomics
- Topic 2.1: Demand
- Topic 2.2: Supply
- Topic 2.3: Competitive Market Equilibrium
- Topic 2.4: Critique of Maximizing Behaviour
- Topic 2.5: Elasticity of Demand
- Concept of elasticity
- Price elasticity of demand (PED)
- Determinants of PED & Relationship between PED and total revenue
- Importance of PED (firms and government)
- Lower PED: primary vs manufactured goods (HL only)
- Changing PED along a straight-line demand curve (HL only)
- Income elasticity of demand (YED)
- Importance of YED (HL only)
- Topic 2.6: Elasticity of Supply
- Topic 2.7: Government Intervention
- Topic 2.8: Market Failure – Externalities & Common Resources
- Topic 2.9: Market Failure – Public Goods
- Topic 2.10: Market Failure – Asymmetric Information (HL only)
- Topic 2.11: Market Failure – Market Power (HL only)
- Perfect competition (many firms, free entry, homogeneous products)
- Monopoly (single/dominant firm, high barriers, no close substitutes)
- Imperfect competition (oligopoly and monopolistic competition)
- Rational producer behaviour (profit maximization) (HL only)
- Degrees of market power
- Monopoly (profit maximization, allocative inefficiency, welfare loss, natural monopoly)
- Oligopoly (collusion, interdependence, price war, concentration ratios)
- Monopolistic competition (short-run & long-run profit, product variety, inefficiency)
- Advantages of large firms (economies of scale, innovation)
- Risks of market dominance (higher prices, reduced output, less choice)
- Government intervention (regulation, ownership, fines)
- Topic 2.12: Market Failure – Equity (HL only)
Unit 3: Macroeconomics
- Topic 3.1: Measuring economic activities
- National income accounting as a measure of economic activity
- Income, output and expenditure approaches to national income accounting
- Nominal GDP as a measure of national output
- Nominal GNI as a measure of national output
- Real GDP and GNI
- Real GDP/GNI per person (per capita)
- Business cycle
- Appropriateness of using GDP or GNI statistics
- Alternative measures of well-being
- Topic 3.2: Variations in economic activity – aggregate demand and aggregate supply
- Aggregate demand (AD)
- Components of AD (consumption)
- Determinants of AD components
- Shifts of the AD curve caused by changes in determinants
- Short-run aggregate supply (SRAS) curve
- Shifts of the SRAS curve
- Alternative views of aggregate supply (AS)
- Shifts of the AS curve over the long-run
- Macroeconomic equilibrium
- Assumptions and implications of the monetarist/new classical and Keynesian models
- Topic 3.3: Macroeconomic objectives
- Topic 3.4: Economics of inequality and poverty
- Relationship between equality and equity
- The meaning of economic inequality
- Measuring economic inequality
- Meaning of poverty
- Measuring poverty
- Difficulties in measuring poverty
- Causes of economic inequality and poverty
- Impact of income and wealth inequality
- Role of taxation in reducing poverty, income and wealth inequalities
- Further policies to reduce poverty, income and wealth inequality
- Topic 3.5: Demand management – monetary policy
- Monetary policy
- Goals of monetary policy
- The process of money creation by commercial banks (HL only)
- Tools of monetary policy (HL only)
- Demand and supply of money (HL only)
- Real versus nominal interest rates
- Expansionary and contractionary monetary policies to close deflationary/recessionary and inflationary gaps
- Effectiveness of monetary policy
- Topic 3.6: Demand management – fiscal policy
- Topic 3.7: Supply-side policies
Unit 4: The Global Economy
- Topic 4.1: Benefits of International Trade
- Topic 4.2: Types of Trade Protection
- Topic 4.3: Arguments For and Against Trade Protection
- Topic 4.4: Economic Integration
- Topic 4.5: Exchange Rates
- Topic 4.6: Balance of Payments
- Balance of payments
- Components of the balance of payments
- Interdependence between the accounts
- Relationship between the current account and the exchange rate (HL)
- Relationship between the financial account and the exchange rate (HL only)
- Implications of a persistent current account deficit (HL only)
- Methods to correct a persistent current account deficit (HL only)
- Correcting a Persistent Current Account Deficit
- The Marshall-Lerner condition and the J-curve effect (HL only)
- Implications of a persistent current account surplus (HL only)
- Topic 4.7: Sustainable Development
- Topic 4.8: Measuring Development
- Topic 4.9: Barriers to Economic Growth and Economic Development
- Topic 4.10: Economic Growth and Economic Development Strategies
- Strategies to Promote Economic Growth and Economic Development
- Strengths and Limitations of Strategies for Promoting Economic Growth and Economic Development
- Strengths and Limitations of Government Intervention Versus Market-Oriented Approaches to Achieving Economic Growth and Economic Development
- Meeting the Sustainable Development Goals
