IB Diploma Program Economics Year 1
The study of economics is essentially about dealing with scarcity, resource allocation and the methods and processes by which choices are made in the satisfaction of human wants. As a dynamic social science, economics uses scientific methodologies that include quantitative and qualitative elements.
The course emphasizes the economic theories of microeconomics, which deal with economic variables affecting individuals, firms and markets, and the economic theories of macroeconomics, which deal with economic variables affecting countries, governments and societies. These economic theories are not to be studied in a vacuum—rather, they are to be applied to real-world issues. Prominent among these issues are fluctuations in economic activity, international trade, economic development and environmental sustainability.
The ethical dimensions involved in the application of economic theories and policies permeate throughout the economics course as students are required to consider and reflect on human end-goals and values.
The economics course encourages students to develop international perspectives, fosters a concern for global issues, and raises students’ awareness of their own responsibilities at a local, national and international level. The course also seeks to develop values and attitudes that will enable students to achieve a degree of personal commitment in trying to resolve these issues, appreciating our shared responsibility as citizens of an increasingly interdependent world.
At both standard level and higher level, candidates are required to study four topics: microeconomics, macroeconomics, international economics and development economics with some sub-topics within these reserved solely for higher level. These sections are assessed by two examinations at standard level and three examinations at higher level.
In addition to the examinations, candidates must submit an internal assessment. Both standard level and higher level economics students must produce a portfolio of three commentaries based on articles from published news media.
During our study of economics the candidate should also investigate:
The course emphasizes the economic theories of microeconomics, which deal with economic variables affecting individuals, firms and markets, and the economic theories of macroeconomics, which deal with economic variables affecting countries, governments and societies. These economic theories are not to be studied in a vacuum—rather, they are to be applied to real-world issues. Prominent among these issues are fluctuations in economic activity, international trade, economic development and environmental sustainability.
The ethical dimensions involved in the application of economic theories and policies permeate throughout the economics course as students are required to consider and reflect on human end-goals and values.
The economics course encourages students to develop international perspectives, fosters a concern for global issues, and raises students’ awareness of their own responsibilities at a local, national and international level. The course also seeks to develop values and attitudes that will enable students to achieve a degree of personal commitment in trying to resolve these issues, appreciating our shared responsibility as citizens of an increasingly interdependent world.
At both standard level and higher level, candidates are required to study four topics: microeconomics, macroeconomics, international economics and development economics with some sub-topics within these reserved solely for higher level. These sections are assessed by two examinations at standard level and three examinations at higher level.
In addition to the examinations, candidates must submit an internal assessment. Both standard level and higher level economics students must produce a portfolio of three commentaries based on articles from published news media.
During our study of economics the candidate should also investigate:
- What distinguishes a social science from a natural science?
- Is there a “social scientific method” as opposed to a “natural scientific method”? What might be the
- similarities and differences?
- What are the roles played by abstract reasoning and concrete evidence in constructing economic theory?
- To what extent is economics value-free?
- Are economic theories independent of culture?
- Is it possible for economic laws to change over time?
- What are the limitations of the use of diagrams and charts in economics?
- What is the role of emotion and creativity in economics?
- What are the implications of economics being based, ultimately, on human psychology?
- To what extent should ideas of fairness and justice inform economic thinking?
- What is a model in economics? What does it do? Does it matter that many of the models we use in economics do not correspond well to reality?
- What are the implications of the assumption of ceteris paribus? Do other areas of knowledge make a similar assumption?
- How do we test knowledge claims in economics? Should all knowledge claims in economics be testable?
- If a claim is not testable, is it meaningless?
- Is there a different method of justifying qualitative rather than quantitative knowledge claims? If so, does this lead to one or other being inherently more reliable?
- What criteria should be adopted for evaluating normative statements in economics?
- What is meant by “rationality” in economics? Are there different types of “economic rationality”?
- If economics studies actual human behaviour, should it also study irrational human behaviour?
|
|
IB DP Economics Timeline:
Year 1
1st Semester: Introduction to Economics & Microeconomics
Unit 1.1 What is economics? Unit 1.2 How do economists approach the world? Unit 2.1 Demand [includes HL only sub-topics] Unit 2.2 Supply [includes HL only sub-topics] Unit 2.3 Competitive market equilibrium Unit 2.4 Critique of the maximizing behavior of consumers and producers [HL only] Unit 2.5 Elasticity of demand [includes HL only sub-topics] Unit 2.6 Elasticity of supply [includes HL only sub-topics] Unit 2.7 Role of government in microeconomics [includes HL only calculation] Unit 2.8 Market failure—externalities and common pool or common access resources [includes HL only calculation] Unit 2.9 Market failure—public goods Unit 2.10 Market failure—asymmetric information [HL only] Unit 2.11 Market failure—market power [HL only] Unit 2.12 The market’s inability to achieve equity [HL only] 1st Internal Assessment completed |
2nd Semester: Macroeconomics
Unit 3.1 Measuring economic activity and illustrating its variations Unit 3.2 Variations in economic activity—aggregate demand and aggregate supply Unit 3.3 Macroeconomic objectives [includes HL only calculation] Unit 3.4 Economics of inequality and poverty [includes HL only calculation] Unit 3.5 Demand management (demand side policies)—monetary policy [includes Unit HL only sub-topics] Unit 3.6 Demand management—fiscal policy [includes HL only sub-topics] Unit 3.7 Supply-side policies 2nd Internal Assessment completed |
Year 2
1st Semester: The Global Economy
Unit 4.1 Benefits of international trade [includes HL only subtopics and calculation] Unit 4.2 Types of trade protection [includes HL only calculations] Unit 4.3 Arguments for and against trade control/protection Unit 4.4 Economic integration Unit 4.5 Exchange rates [includes HL only sub-topic] Unit 4.6 Balance of payments [includes HL only sub-topics] Unit 4.7 Sustainable development [includes HL only sub-topic] Unit 4.8 Measuring development Unit 4.9 Barriers to economic growth and/or economic development Unit 4.10 Economic growth and/or economic development strategies 3rd and final Internal Assessment completed |
2nd Semester: Review & Paper 3
|
|
|