Economics
Group 3 · Individuals and societiesFirst assessment 2022
Revision
Learn and review the syllabus, one subtopic at a time.
Exam practice
Answer in the form the exam uses, then review.
Syllabus
4 units · 31 topics · 163 Notes pages · 4 HL-only topics. Open a topic to choose a subtopic.
1Introduction to economics
What is economics?
- Economics as a social science and its nine central concepts, complete
- Factors of production and factor incomes, complete
- Scarcity, choice and the economic problem, complete
- Opportunity cost in economic decisions, complete
- Resource allocation and economic systems, complete
- The production possibilities curve, complete
- Modelling the economy: the circular flow of income, complete
2Microeconomics
Critique of the maximizing behaviour of consumers and producersHL only
Elasticity of demandLast read
- Elasticity and price elasticity of demand, complete
- Degrees and diagrams of PED, complete
- Determinants of PEDLast read, not complete
- PED, total revenue and policy, not complete
- Income elasticity of demand, not complete
- PED along a linear demand curveHL only, not complete
- PED of primary commodities and manufactured productsHL only, not complete
- Applications of YEDHL only, not complete
Role of government in microeconomics
- Reasons for government intervention, not complete
- Price ceilings and price floors, not complete
- Indirect taxes and subsidies, not complete
- Direct provision and regulation, not complete
- Consumer nudgesHL only, not complete
- Market and stakeholder consequences, not complete
- Calculating the effects of price controls, indirect taxes and subsidiesHL only, not complete
Market failure: externalities and common pool or common access resources
Market failure: asymmetric informationHL only
Market failure: market powerHL only
- Market structures and market power, not complete
- Profit, revenue and costs, not complete
- Calculating profit, MC, MR, AC and AR from data, not complete
- Perfect competition, not complete
- Monopoly and natural monopoly, not complete
- Oligopoly and game theory, not complete
- Monopolistic competition, not complete
- Evaluating market power and intervention, not complete
The market's inability to achieve equityHL only
3Macroeconomics
Measuring economic activity and illustrating its variations
Variations in economic activity: aggregate demand and aggregate supply
Macroeconomic objectives
- Economic growth and living standards, not complete
- Unemployment, not complete
- Inflation and deflation, not complete
- Constructing a weighted price indexHL only, not complete
- Sustainable government debtHL only, not complete
- Relative costs and conflicts between objectives, not complete
- Phillips curve trade-offsHL only, not complete
Economics of inequality and poverty
- Income and wealth inequality, not complete
- Lorenz curve and Gini coefficient, not complete
- Absolute, relative and multidimensional poverty, not complete
- Causes and consequences of inequality, not complete
- Progressive, regressive and proportional taxation, not complete
- Policies to reduce poverty and inequality, not complete
- Lorenz curve construction, tax rates and tax calculationsHL only, not complete
Demand management: monetary policy
- Goals of monetary policy, complete
- Money creation by commercial banksHL only, not complete
- Tools of monetary policyHL only, not complete
- The money market and the equilibrium interest rateHL only, not complete
- Real and nominal interest rates, not complete
- Expansionary and contractionary policy, not complete
- The transmission mechanism, not complete
- Strengths and constraints of monetary policy, not complete
Demand management: fiscal policy
- Revenue, expenditure, budgets and objectives, not complete
- Expansionary and contractionary fiscal policy, not complete
- Effectiveness and policy trade-offs, not complete
- Supply effects of fiscal measures, not complete
- Keynesian multiplier and injection calculationsHL only, not complete
- Automatic stabilizationHL only, not complete
- Crowding out and its conditionsHL only, not complete
Supply-side policies
- Productivity, capacity and policy goals, not complete
- Competition and ownership reforms, not complete
- Labour-market flexibility and minimum wages, not complete
- Tax incentives, not complete
- Education, training and health, not complete
- Infrastructure, research and industrial policy, not complete
- Demand and supply links, not complete
- Policy evaluation, not complete
4The global economy
Benefits of international trade
- Benefits of trade, not complete
- Free trade diagrams: world price, exports and imports, not complete
- Calculating exports, imports, import expenditure and export revenueHL only, not complete
- Absolute and comparative advantageHL only, not complete
- Limitations of the theory of comparative advantageHL only, not complete
Arguments for and against trade control/protection
Economic integration
- Preferential trade agreements, not complete
- Types of trading bloc, not complete
- Benefits and costs of integration, not complete
- Trade creation and trade diversionHL only, not complete
- Monetary union, not complete
- Advantages and disadvantages of monetary unionHL only, not complete
- World Trade Organization, not complete
Balance of payments
- Structure and credits/debits, not complete
- Current account, not complete
- Capital and financial accounts, not complete
- Account interdependence and zero balance, not complete
- The current and financial accounts and the exchange rateHL only, not complete
- Implications of persistent current account deficits and surplusesHL only, not complete
- Correction methodsHL only, not complete
- Marshall-Lerner and J-curveHL only, not complete
Barriers to economic growth and/or economic development
Economic growth and/or economic development strategies