Ib Diploma Economics
CHAPTER 1- INTRODUCTION TO ECONOMICS
Lesson PPT here
Study Note - The Basic Economic Problem: Scarcity and Choice
http://www.tutor2u.net/economics/blog/study-note-the-basic-economic-problem-scarcity-and-choice
Exercise on Opportunity Cost here
CHAPTER 2- COMPETITIVE MARKETS: DEMAND AND SUPPLY
Lesson PPT here
Worksheet on Demand here
Worksheet on Supply here
Normal Good & Inferior Good
http://www.investopedia.com/terms/n/normal-good.asp
Shift in Demand and Movement Along Demand Curve
http://www.economicshelp.org/blog/581/economics/changes-in-demand/
CHAPTER 3- ELASTICITIES
Lesson PPT here
Notes on Elasticities
Lesson PPT here
Study Note - The Basic Economic Problem: Scarcity and Choice
http://www.tutor2u.net/economics/blog/study-note-the-basic-economic-problem-scarcity-and-choice
Exercise on Opportunity Cost here
CHAPTER 2- COMPETITIVE MARKETS: DEMAND AND SUPPLY
Lesson PPT here
Worksheet on Demand here
Worksheet on Supply here
Normal Good & Inferior Good
http://www.investopedia.com/terms/n/normal-good.asp
Shift in Demand and Movement Along Demand Curve
http://www.economicshelp.org/blog/581/economics/changes-in-demand/
CHAPTER 3- ELASTICITIES
Lesson PPT here
Notes on Elasticities
notes_on_elasticities.pdf |
Uber’s Pricing Formula Has Allowed Economists to Map Out a Real Demand Curve
http://blogs.wsj.com/economics/2016/09/19/ubers-pricing-formula-has-allowed-economists-to-map-out-a-real-demand-curve/
Others
Oil Price: Not Just About Supply, Consider Demand Elasticity Too (Theory of the Firm)
http://www.investing.com/analysis/don%E2%80%99t-forget-oil-demand-elasticity!-200125503
Question 1
Explain whether the following goods are price elastic or inelastic. Back up your answers with at least 3 reasons and make sure you use proper terminology such as “responsive” and “price elastic. Each product is worth 4 marks.
Question 2
Calculate the PED in the cases below and identify the nature of price elasticity for each of them. Each question is worth 4 marks.
Question 3 (8 marks)
With reference to the challenge question we did in the lesson, use the concept of elasticity to explain why it is possible for Q3 to be less than Q1. The diagram can be found in the file below.
CHAPTER 4- GOVERNMENT INTERVENTION
Price Ceilings & Price Floors
Notes on Price Ceilings & Price Floors
https://www2.palomar.edu/users/llee/101Chapter08.pdf
Common Agricultural Policy (Case Study for Price Floor)
http://www.economicsonline.co.uk/Global_economics/Common_Agricultural_Policy.html
Minimum Wage
Evaluate the pros and cons of the setting a minimum wage. Use examples around the world in your answers.
"Evaluate" is an official IB command term and its explanation can be found here.
When you evaluate, you may consider using the following phrases:
CHAPTER 5- MARKET FAILURE
Introduction to Market Failure here
Lesson PPT here
Unit Questions
a) Explain why a government might decide to impose an indirect tax on the consumption of cigarettes. (10)
b) Discuss the possible consequences of the imposition of an indirect tax on cigarettes for different stakeholders in the market. (15)
November 2015 TZ0
http://blogs.wsj.com/economics/2016/09/19/ubers-pricing-formula-has-allowed-economists-to-map-out-a-real-demand-curve/
Others
Oil Price: Not Just About Supply, Consider Demand Elasticity Too (Theory of the Firm)
http://www.investing.com/analysis/don%E2%80%99t-forget-oil-demand-elasticity!-200125503
Question 1
Explain whether the following goods are price elastic or inelastic. Back up your answers with at least 3 reasons and make sure you use proper terminology such as “responsive” and “price elastic. Each product is worth 4 marks.
- Cigarettes
- Heinz Soup
- Shell Petrol
- Salt
- Tap Water
- Parknshop Bread
- Mingpao Newspaper
- Diamonds
- Kit Kat
- Mr Lai’s economics notes
Question 2
Calculate the PED in the cases below and identify the nature of price elasticity for each of them. Each question is worth 4 marks.
- The percentage change in price is 15% and the % change in quantity demanded is 5%
- Quantity demanded changes from 100 to 90 and a price change from $1 to 1.25
- A fall in airline ticket prices to $400 from $500 causes booking to increase from 10,000 to 15,000
- A fall in the price of gasoline from $1.5 to $1.2/L results in gas stations selling 20% more gasoline
Question 3 (8 marks)
With reference to the challenge question we did in the lesson, use the concept of elasticity to explain why it is possible for Q3 to be less than Q1. The diagram can be found in the file below.
CHAPTER 4- GOVERNMENT INTERVENTION
Price Ceilings & Price Floors
Notes on Price Ceilings & Price Floors
https://www2.palomar.edu/users/llee/101Chapter08.pdf
Common Agricultural Policy (Case Study for Price Floor)
http://www.economicsonline.co.uk/Global_economics/Common_Agricultural_Policy.html
Minimum Wage
Evaluate the pros and cons of the setting a minimum wage. Use examples around the world in your answers.
"Evaluate" is an official IB command term and its explanation can be found here.
When you evaluate, you may consider using the following phrases:
- JUDGEMENT- Student must make a judgment. “It is not clear that the policy would have the intended effect…”
- Balanced reasoning- Look at strength and weakness. Start with “On balance” or “In judgment” in the paragraph.
- In my opinion, I think the problem….depends on…monopoly supplier (1 mark)
- “On one hand, they have made themselves dependent…However, in the long run, they are able to make solar etc”.
- On balance…. Overall, it can be argued that
- IN my opinion, I think this and this. This is because strength/weakness of x. On balance, y factor of x would impact stakeholder A more and not so much D. or. In the long run/short run….
CHAPTER 5- MARKET FAILURE
Introduction to Market Failure here
Lesson PPT here
Unit Questions
a) Explain why a government might decide to impose an indirect tax on the consumption of cigarettes. (10)
b) Discuss the possible consequences of the imposition of an indirect tax on cigarettes for different stakeholders in the market. (15)
November 2015 TZ0