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IB Economics

The aims of the DP economics course are to enable students to:

  • develop an understanding of microeconomic and macroeconomic theories and concepts and their real-world application

  • develop an appreciation of the impact on individuals and societies of economic interactions between nations

  • develop an awareness of development issues facing nations as they undergo the process of change​


Section 1: Microeconomics
1.1 Competitive markets: demand and supply
1.2 Elasticity
1.3 Government intervention
1.4 Market failure
1.5 Theory of the firm and market structures

Section 2: Macroeconomics
2.1 The level of overall economic activity
2.2 Aggregate demand and aggregate supply
2.3 Macroeconomic objectives
2.4 Fiscal policy
2.5 Monetary policy
2.6 Supply-side policies

Section 3: International economics
3.1 International trade
3.2 Exchange rates
3.3 The balance of payments
3.4 Economic integration
3.5 Terms of trade

Section 4: Development economics
4.1. Economic development
4.2. Measuring development
4.3. The role of domestic factors
4.4. The role of international trade
4.5. The role of foreign direct investment
4.6. The roles of foreign aid and multilateral development assistance
4.7. The role of international debt
4.8. The balance between markets and intervention


Internal assessment:
Three commentaries based on different sections of the syllabus and on published extracts from the news media.



Paper 1 : Extended response paper on microeconomics and macroeconomics, 1.5hrs , weighting of final grade : 30% 
Paper 2 : Data response paper on international and development economics, 1.5hrs , weighting of final grade : 30%
Paper 3 : HL extension paper on all syllabus content, 1 hr , weighting of final grade : 20%
Internal assessment, weighting of final grade : 20%

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