IB ECONOMICS 2023

REVIEW
MICROECONOMICS
Critique of the
Maximizing Behaviour of
REAL LIFE Consumers and
EXAMPLES... Producers
Must have Behavioural Economics
MARKET FAILURE
appropriate
examples for Market Failure--Externalities
and Common Pool or
Paper 1
Common Access Failures

MARKET POWER-HL
PAPER 2
Monopoly Vs PC in the
Formulas and
SR and LR
Monopolies and caluations and
Oligopolies-are they understaqndings of
bad? Elasticity (PED, PES,
GOVT INTERVENTION YED
Maximum and Minimum
Models HL-Market power
prices, taxes and
subsidies, Elinor
and calculations of
Olstrum, cap and trade efficiency and loss
(HL)

EVALUATE:
KEY THEME: government
responses to
threats to
Efficiency and
sustainability &
Effectiveness
Interventions in
the market

https://www.youtube.com/@EconplusDal
 IB ECONOMICS 2023
REVIEW
MACROECONOMICS
Measures of economic activity:
gross domestic product (GDP),
REAL LIFE and gross national product
EXAMPLES... (GNP) or gross national income
(GNI)
Must have
GDP-CALCULATIONS
appropriate examples
Calculate nominal and
for Paper 1
REal GDP from sets
Calculate real GDP, using
a price deflator (HL ONLY)

AD/AS-MODELS PAPER 2 & 3

Calculate the
Models and shifts of
unemployment rate
curves and policy
implications when
from a set of data
curves shift Diagram: minimum wage
to show unemployment
AS-DIFFERENT PHILOSOPHIES
Calculation (HL only): a
Classical and keynesian
weighted price index, using
and implications for
policies
a set of data provided

EVALUATE:
KEY THEME: government
responses to
Efficiency and
Effectiveness inflation and
unemployment

https://www.youtube.com/@EconplusDal
 IB ECONOMICS 2023
REVIEW
MACROECONOMICS
Trade-off between
unemployment and
REAL LIFE inflation (HL only)

EXAMPLES... ▪ Short-run and long-

run Phillips curve
Must have DEBT-CALCULATIONS
appropriate examples Sustainable level of
for Paper 1 government (national) debt
(HL only)
Measurement of
government (national) debt
as a percentage of GDP

INEQUALITY PAPER 2 & 3

Measuring economic
Construction (HL only):
inequality
a Lorenz curve from
• Lorenz curve and
Gini coefficient (index) income quintile data

AS-DIFFERENT PHILOSOPHIES Diagram: Lorenz curve

showing the distribution
Classical and keynesian of income and possible
and implications for changes in the
policies distribution of income

EVALUATE:
KEY THEME: government
responses to
Equity and inflation,
Effectiveness poverty and
unemployment
https://www.youtube.com/@EconplusDal
 IB ECONOMICS 2023
REVIEW
POVERTY
Difference between
absolute and relative
REAL LIFE poverty
EXAMPLES...
Must have
CALCULATING POVERTY
appropriate examples
Composite indicators
for Paper 1
including the
Multidimensional Poverty
Index (MPI)

POVERTY PAPER 2 & 3

1. Measuring economic
Calculation (HL only):
inequality
given the indirect tax
• Lorenz curve and Gini
coefficient (index) rate, the amount of
indirect tax paid from a
AS-DIFFERENT PHILOSOPHIES given level/ amount of
expenditure
Classical and keynesian Calculation (HL only):
and implications for total tax and average
policies
tax rates from a set of
data

EVALUATE:
KEY THEME: government
policies to
Equity and
Effectiveness
reduce
poverty

https://www.youtube.com/@EconplusDal
 IB ECONOMICS 2023
REVIEW
MONETARY POLICY
Goals of monetary policy
Tools of monetary policy
REAL LIFE HL
EXAMPLES... Determination of interest
rates HL
Must have USE OF MONETARY
appropriate examples POLICY
for Paper 1 Epansionary and
contractionary
monetary policy

POVERTY PAPER 2 & 3

1. Measuring economic
Calculation (HL only):
inequality
given the indirect tax
• Lorenz curve and Gini
coefficient (index) rate, the amount of
indirect tax paid from a
AS-DIFFERENT PHILOSOPHIES given level/ amount of
expenditure
Classical and keynesian Calculation (HL only):
and implications for total tax and average
policies
tax rates from a set of
data

EVALUATE:
KEY THEME: government
Monetary
Equity and
Effectiveness
policy and
impact on Goals

https://www.youtube.com/@EconplusDal
 IB ECONOMICS 2023
REVIEW
FISCAL POLICY

Goals of Fiscal policy

Tools of monetary policy
REAL LIFE HL
EXAMPLES... Multiplier and impact HL

Must have
appropriate examples USE OF FISCAL POLICY
for Paper 1 Effectiveness of
Fiscal policy
Crowding out HL

SUPPLY SIDE PAPER 2 & 3

Market based and
interventionist
Calculations of impact
policies
of policies on GDP
Analysis of advantages
AS-DIFFERENT PHILOSOPHIES
of fiscal policy and
Classical and keynesian supply side policies
and implications for
policies

EVALUATE:
KEY THEME: Effectivness of
Fiscal and
Equity and
Effectiveness
Supply side
policies

https://www.youtube.com/@EconplusDal
 IB ECONOMICS 2023
REVIEW
FREE TRADE VS
PROTECTIONISM
Arguments for free trade
and against free trade
REAL LIFE Arguments for and against
EXAMPLES... protectionism

Must have Absolute and

appropriate examples comparative
for Paper 1 advantage HL
Limitations to
Comparative
advantage HL

INTEGRATION PAPER 2 & 3

Trade agreements- Calculations of impact
advantages and of policies
disadvantages
protectionist-Tariffs,
ADVANTAGES AND quotas, subsidies
DISADVANTAGES OF
MONETARY UNION HL Exchange rate-fixed vs
Exchange rate-fixed vs floating-appreciation,
floating-advantages depreciation, revaluation
and disadvantages and devaluation

EVALUATE:
KEY THEME: Trade policies
Fixed vs
Equity and
Effectiveness
Floating ER
systems-HL

https://www.youtube.com/@EconplusDal
 IB ECONOMICS 2023
REVIEW
BALANCE OF PAYMENTS
Components of the
Balance of Payments
REAL LIFE RElationaship between ER
EXAMPLES... and BOP-HL

Must have implications of a

appropriate examples persistent of
for Paper 1 current account
deficit-HL
Methods to correct
a CA deficit

INTEGRATION PAPER 2 & 3

ML Condition and J
Curve-HL Poverty cycles and
how to escape them
HOW TO MEASURE
ECONOMIC DEVELOPMENT

Strengths and
Policies to promote
weaknesses to
economic development
measuing economic
development

EVALUATE:
KEY THEME: Policies to
promote
Equity and
Effectiveness
Economic
Development

https://www.youtube.com/@EconplusDal