You will have to focus more on developing content and analysing your chosen article. Change in the conditions of the demand and supply sides of the economy cause economic activity to vary over time. We compute it as the percentage change in quantity demanded (or supplied) divided by the percentage change in price. So, when you are submitting your first draft, please make sure that you have followed all the guidelines specified by the IB. By siging up, I agree to Lanternas . Events impacting on one sector will flow on to affect other sectors. The extent to which the candidate meets the three rubric requirements mentioned. Search; Post Type If the student is paid $15 an hour, but values the marginal cost of a third hour spent working at more than $15 they really want to use it for study or to be with friends then the most hours they should work are two. Subject to the conditions provided for by applicable Strengths of fiscal policy, including: Diagram: AD/AS model and LRAS curve to show the effect of supply-side policies, Demand-side effects of supply-side policies. Each article has to be based on a different unit of the syllabus. Students are also required to choose one of nine key concepts for each commentary which it focuses on. Different schools of macroeconomic thought identify different causes and offer different solutions for macroeconomic problems. Nail IB is your virtual companion thathelps you hustle through your diploma and provide you with the right resources at the right time. Higher prices resulting from increased consumer demand are an incentive for producers to supply more of a good or service because they may earn more profit. Quick reference: The role of the price mechanism. Each commentary has a word limit of 800 words. The International Baccalaureate Primary Years Program (PYP) is driven by eight key concepts which give the inquiries direction and meaning. The IB PYP now has 7 key concepts that are designed as the lens or the "big picture"of which we look at our lines of inquiry within each of our six units of inquiry. The Economics IA is a portfolio of three commentaries of a firm or nations decisions from extracts of published news media by applying existing knowledge on economic theories. For example, free markets inevitably distribute incomes unevenly because the income earned depends on supply and demand for labour resources, which are different in different markets. Make sure you talk in economic terms. Changes in demand and supply for a currencyfactors including: Calculation: changes in the value of a currency from a set of data. Debates exist in economics regarding the potential conflicts between economic growth and equity and between free markets and government intervention. Recommended teaching time: 10 hours Make sure to maintain your bibliography right from the beginning. Also, relevance is the most important thing to keep in your mind when drawing the diagrams. It is all about evaluating and theorizing the outcomes that could happen. Socially optimum output: marginal social benefit (MSB) equals marginal social cost (MSC). Finally, in terms of assessment, IB HL Economics students are now required to answer policy recommendation questions in Paper 3, and SL Economics students need to answer some quantitative questions in Paper 2. One of the only new topics in the syllabus includes a section on sustainability, the meaning of sustainable development, the sustainable development goals, and the relationship between sustainability and poverty. 7.2 Production in the Short Run. Ask our Economics Tutor a free question or get a personalised 1 to 1 online lesson with us today. Government intervention attempts to achieve macroeconomic objectives through a choice of policies. Paper 3 will largely focus on the quantitative elements in the syllabus, but there will be a greater need for definitions and explanations than in the past. 40 teaching hours for SL, 70 hours for HL where you'll study measures of economic activity, macroeconomic objectives, demand-side policies, and supply-side policies. Improved economic efficiency also gives a government the opportunity to can spend more on developing infrastructure to improve productivity. A market may be efficient, but society may be concerned that the benefits from market activity are unfairly shared out. Welfare is maximized if allocative efficiency is achieved. Copyright 2022 Get the grade you deserve. Dont panic weve got you covered. This involves skills such as connecting news articles to relevent theories and explaining the key assumptions that emerge. The following are key concepts/big ideas in economics: Scarcity results in choices with opportunity costs. Note: first assessment 2022; latest economics guide. Economic well-being is a multidimensional concept relating to the level of prosperity and quality of living standards enjoyed by members of an economy. Whilst its all about becoming a well-rounded student and excelling in the subjects that you find most interesting, it seems to push you down the path of High School -> University -> Boring but high-paying job. Listening to other people's ideas also enriches your intellect. Each IA has to use a theory or theories from one of the three units: Microeconomics, Macroeconomics, and International Trade. This forces societies to face trade-offs, opportunity costs and the challenge of sustainability. It is not possible to vary fixed inputs (e.g. 4. The greater the scarcity, the higher the price, and the more the resource will be conserved. These concepts are recurring themes throughout the course . the extra revenue gained by producers (Marginal costs) Consumer. Interaction between consumers and producers in a market is the main mechanism through which resources are directed to meet the needs and wants in an economy. Consider: did his rise largely come about because of himself or because of the conditions in which he found himself? With model answers! Macroeconomics. You want to make terms likeexternalities, quota, trade barriers, foreign investment, etc, a part of your daily vocabulary. IB Economics Assessment The examiners are not looking for the definitions; they already have an adequate amount of knowledge in the field of economics. Economics is an exciting, dynamic subject that allows students to develop an understanding of the complexities and interdependence of economic activities in a rapidly changing world. Overview: Global Politics HL Presentations, Economics Paper 1 & 2 revision strategies. It's hard to say, but if you can address this issue, you are addressing the concept of change and the reasons behind it. The diagram attached below is a good example for a well-labelled diagram. Note that you only need to define the important key terms and not all the terms. Constant change produces dynamic markets. Quick reference: Price elasticity of demand (PED) When you take the definitions from any sources, including textbooks, do not forget to credit the sources. Real indicators account for the effects of inflation. You are going to submit three Economics commentaries by the end of your IB diploma/certificate. Syllabus key concepts: scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, intervention. There are nine key concepts around which the course will be structured: scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence and intervention. The focus of this paper has now slightly shifted, and may prove to be slightly more difficult (as evidenced by Paper 3 now being worth 10% more!). Do not waste your words with an irrelevant introduction. Benefits of international trade, including: Diagram: free trade illustrating exports when world price is above domestic price, Diagram: showing the effect of a tariff on price, production, consumption, expenditures, revenues, welfare, Diagram: showing the effect of a quota on price, production, consumption, expenditures, revenues, welfare, Diagram: showing the effect of a subsidy on price, production, consumption, expenditures, revenues, welfare. Recommended time for teaching and inquiry: SL35 hours, HL70 hours. Below is an overview of the key concepts built into the course. Our elite graduates at Lanterna have thought about how to choose your IB subjects and these are [], The IB sometimes gets a bit of a bad rap. Its difficult to know what subjects to take if you dont have much information on them! Make the most out of your teachers comments. 2.5 Elasticity of demand. Many students find the actual act of writing an IA intimidating. The new IB Economics syllabus and curriculum for 2020 is listed below, for first assessment in 2022. Inequity, resulting in inequalities. Apart from that, the IA remains the same for SL and HL students. Consequences of changes in the exchange rate on economic indicators, such as: Diagram: AD/AS curves to show potential consequences of changes in the exchange rate on the economy, Diagram: showing how a fixed exchange rate is maintained, Diagram: showing the exchange rate determination and changes in equilibrium in a managed exchange rate system, Calculation: elements of the balance of payments from a set of data, The multidimensional nature of economic development, Strengths and limitations of approaches to measuring economic development, Possible relationship between economic growth and economic development, Diagram: a poverty cycle showing any linked combination of factors that perpetuate poverty, Significance of different barriers to economic growth and/or economic development, Strategies to promote economic growth and/or economic development, Diagrams: in this section students are expected to draw from the diagrams used in the other sections, Strengths and limitations of strategies for promoting economic growth and economic development, Strengths and limitations of government intervention versus market-oriented approaches to achieving economic growth and economic development, Progress toward meeting selected Sustainable Development Goals in the context of two or more countries. Market failure may require government intervention. newsletters and promotional offers. Content for HL Economics only is noted in orange colour. Improved public health reduces demand for more hospital services and the need for more hospitals to be built. How much the student values their time not working (the opportunity cost) represents the marginal cost. Economists use increases in real income to identify economic growth increasing real income shows that a country, with its resources, is now able to satisfy more wants and needs. You can even include hand diagrams on paper though they are not recommended. The economics syllabus has been the same for the past 9 years, so youll be the guinea pigs of the new content. It looks into the continuous statements made on the situation, as well as the sufficient assessments made on it. Moreover, sample IB Economics IAs can help you fine-tune your analysis. Check them out below. The effect of higher prices is to discourage demand and conserve resources. For example, a student with an after-school job could use marginal analysis to optimise the number of hours worked. D: Key concept (3 marks) IB Explanation: This criterion assesses the extent to which the student can explain and develop appropriate economic theories and/or concepts in the context of the article. If youre studying SL Economics, your IA commentaries are now worth 30% of your overall grade. The different sectors of an economy (households, producers, financial, government, overseas) rely on each other (are interdependent). , while the Paper 1 has become slightly less! 40 teaching hours for SL, 70 hours for HL where youll study measures of economic activity, macroeconomic objectives, demand-side policies, and supply-side policies. Strengths and limitations of government policies to correct externalities and approaches to managing common pool resources including: Government intervention in response to public goods, National income accounting as a measure of economic activity, Diagram: circular flow of income model showing the interactions between decision makers, leakages and injections, Equivalence of the income, output and expenditure approaches to national income accounting, with reference to the circular flow model, [Nominal] Gross domestic product (GDP) as a measure of national output, Calculation: [nominal] GDP from sets of national income data, using the expenditure approach, [Nominal] Gross national income (GNI) as a measure of national output, Calculation: real GDP and real GNI, using a price deflator, Calculation: real GDP per capita and real GNI per capita, Business cycle: short-term fluctuations and long-term growth trend (potential output), Diagram: business cycle showing short-term fluctuations and long-term growth trend (potential output). For example, if you are writing your microeconomics commentary and your news is about government banning alcohol, you should be able to deduce it's economical impact. quantitative easing, bank reserve regulations) for HL Economics students. The final part of each question will ask you to recommend a policy for the situation you were given. So, your. Macroeconomic policy suggestions therefore tend to focus on the balance of aggregate demand and aggregate supply. For example, nominal national income is the dollar value of an economys income in a particular year. Note that you only need to define the, Start off by explaining the case of your article and what is going to be analysed in the essay. I will elaborate on the importance of diagrams later on in this blog! Other governments recognise that reducing poverty will improve economic efficiency. Do not waste your words with an irrelevant introduction. For example, as oil slowly runs out and its price rises, demand will be discouraged, leading to more oil being conserved than at lower prices. This colorful poster set features the 7 IB PYP Key Concepts. Do not rephrase the sentences from your article. opening the floodgates to that sweet 45! Related concepts can have different levels of abstraction and disciplinary specificity (Erickson 2008). These are scarcity, choices, efficiency, equity, economic well-being, sustainability, change, interdependence, and intervention. 4.9. These visuals can be used to promote inquiry and questioning, as part of a wonder wall, and as part of your unit . Hereafter, you will read about: Make the most out of your teachers comments. For example, if you are writing your microeconomics commentary and your news is about government banning alcohol, you should be able to deduce it's economical impact. They are only allowed to help you once! For instance, your commentary should mention how banning alcohol might create an unregulated black market, spikingup the price. If youre studying HL Economics, your Paper 1 score makes up 20% of your overall grade, Paper 2 and Paper 3 make up 30% each, and your IA stands for the final 20%. Click to download Worksheet 1. It is concerned with aggregate supply (total national output of goods and services) and aggregate demand (the total spending of the whole economy ) and issues such as economic growth, inflation, unemployment, and economic fluctuations. Values affect the importance (or weighting) people give to the different factors they consider in making a choice. Similarly, students are likelier to work hard to develop skills they recognise as required for the high paying job they aspire to. Quick reference: Rational consumer choice. Micro means small and macro means big. It does not matter if its a simple diagram, but your explanation makes it different. - Builds revision skills through a range of strategies and detailed expert advice - . At the heart of economic theory is the problem of scarcity. Why would something irrelevant fetch you marks? The economic world is in a continual state of flux and economists must be aware of this and adapt their thinking accordingly. Markets are places or situations where producers and consumers exchange goods and services. If youre studying HL Economics, your Paper 1 score makes up 20% of your overall grade, Paper 2 and Paper 3 make up 30% each, and your IA stands for the final 20%. Adam Smith (widely cited as the father of modern economics) argued that if consumers are allowed to freely choose what to buy and if producers choose freely what to sell and how to produce it, a free market will, as if led by an invisible hand, settle on products and prices that make both consumers and producers both better off. This will surely help you as terminology is a part of your criteria. Concepts, themes and categories play an important role in the IB History course. Conceptual understandings: If a government believes the gap between rich and poor is too great, it will redistribute wealth by giving benefits to the poor, for example, unemployment benefits, and taxing the rich at higher rates. PDF. 2.4 Critique of the maximizing behavior of consumers and producers. Typically when a new focus is added to a syllabus the IB will be keen to add questions about this topic on the first exams for that syllabus. Coming to a conclusion is based on the assumptions you made throughout your essay. The macroeconomic AS AD model aids analysis of changes in the internal and external influences affecting an economy, in particular, their impact on inflation, economic growth, and employment. promotional emails that we send to you. For deeper construction, you can make assumptions from your theory. The extent to which the candidate uses relevant economic terms. They are only allowed to help you once! classes to learn/preach! Also, avoid using direct quotes from the article in your commentary. These are posters with a cute wood theme to list and define Key & Related Concepts! Or you can always buy the best IB economics resources from the nailib.com for the best help an IB student would require. The research article must be recent (aim for the current year) and published by a mainstream publisher (eg The Sydney Morning Herald). A clear picture can help you tell a lot. Unit 1: Introduction to Economics. Start by defininga few important keywords from your article. Do note that our Economics commentary is going to be marked by your teacher at school. If you are in doubt to draw the diagram, you can always consult your teacher for help in using the software. For more information, visit the Oxford IB website. Access them all! Login length need to be from 3 to 40 characters, Password length need to be from 8 to 40 characters, Email length need to be from 5 to 40 characters, Password length need to be from 5 to 40 characters. Political, economic, social and environmental factors are interdependent and will influence the effectiveness of government policies. Registration confirmation will be emailed to you. For help on how to appropriately use economic terms, refer to the IB Economics guide. In all honestly, Economies IA may come out a little intimidating but once you decipher them, they are one of the most interesting commentaries that you will write in your life. - The Nine Key Concepts - Scarcity - Choice - Efficiency - Equity - Economic Well-Being - Sustainability - Change - Interdependence - Intervention They use indicators to estimate how well the economy is doing and to highlight trends in contemporary macro-economic issues, such as economic growth, employment, international trade, inflation, and equity. You will be asked to answer 2 compulsory questions. Production is the process a firm uses to transform inputs (e.g. Paper 2 Exam Questions All with model, exemplar answers! Paper 1 Exam questions All with model, exemplar answers! The key concepts are: Scarcity Choice Efficiency Equity Economic Well-Being Sustainability Change Interdependence Intervention Each article chosen must be published no more than one year before the writing of the commentary. Real national income is the income with the effects of inflation removed, thereby indicating the actual purchasing power of the income. Macro-economics is the branch of economics that examines the workings and problems of the economy as a whole. You will have to brainstorm some ideas before you start writing your commentary. (1 More IB Past Papers). You should limit the number of words in your introduction to only 150 and save the rest of your word count for analysing and evaluating. Allocative efficiency at the competitive market equilibrium: Diagram: relatively elastic and inelastic demand, Diagram: constant PEDperfectly elastic, perfectly inelastic and unitary PED along a demand curve, Determinants of PEDnumber and closeness of substitutes, degree of necessity, proportion of income spent on the good, time, Importance of PED for firms and government decision- making, Diagram: showing income elastic, income inelastic and inferior goods on an Engel curve, Diagram: relatively elastic and inelastic supply, Reasons for government intervention in markets, Main forms of government intervention in markets, Diagram: showing the following measures and the possible effects on markets and stakeholders, Government intervention in marketsconsequences for markets and stakeholders. The economic world is dynamic in nature and constantly subject to change. Hence, be sure to use our IB Economics notes & questions by topic for practicing and revising certain areas of the course. while your Paper 1 has decreased in value slightly! Your IB Economics commentaries should be based on all 3 parts of your economics coursework, i.e. Perfectly competitive markets are efficient. The extent to which the candidates judgement of the situation which is supported by a reasoned argument. Scarcity results in choices with opportunity costs, Markets provide incentives and ration scarce resources, Perfectly competitive markets are efficient, Market failure may require government intervention, The benefits of market activities may not be equitable, Government intervention may involve an equityefficiency trade-off, Interdependence results in flow-on effects, Economic indicators aid economic analysis, Inflation can distort economic indicators, Perfectly competitive markets (for private goods and services at equilibrium) are efficient, Government interventions for common causes of market failure. It looks at the extent to which the key concept is recognized and linked to the chosen article, through the actions of firms or nations. Economic theories are based on logic and empirical data, using models to represent and analyse this complex reality. Basically, you are going to be fully explaining the theory and how the theory is related to your article or also the linkages between the theory and its aspects. The correct answers for the worksheet are as follows: Scarcity Choices Scarcity Sustainability Scarcity Efficiency Equity Economic well-being Intervention Equity Economic well-being Key Concepts Of The New Pattern Every change that occurs is based on some underlying foundations, ideas, concepts, and motive. Whenever resources are particularly scarce, demand exceeds supply, and prices are driven up. Calculation (HL only): the effects on markets and stakeholders of: Calculation (HL only): welfare loss from a diagram, Perfect competitionmany firms, free entry, homogeneous products, Monopolysingle or dominant firm, high barriers to entry, no close substitutes, Rational producer behaviourprofit maximization (HL only), Calculation (HL only): profit, MC, MR, AC, AR from data. Quick reference: Market equilibrium. Among economists, the most commonly accepted set of ideas about how the economy works is called neoclassical economics. Megan Schreiber. In accordance I assume that most probably, the new Economics Syllabus for first teaching in August 2020 and first assessment in May 2022, will be out very soon. We wouldnt recommend using a textbook for the old syllabus as your primary source of information, as youll be missing the small differences between the two syllabi, but we strongly encourage you to still use exam papers from the old syllabus as helpful study tools, as a lot of questions will be very similar! Longer notes: Elasticities. the syllabus is to be explored through real world examples, with a credit given to . (causation, consequence, continuity, change, significance and . Values influence economic choices. This means that you should not start your Microeconomic commentary and take a detour to International Trade. IB economics is taught using the triangulation of . Here is a list of the main take-aways from this IB Economics Internal Assessment Guide: The one intangible point missing from this IB Economics Internal Assessment guide is that you need to have the right mindset to score well in IB Economics Internal Assessments.