Economics for the IB Diploma

Cover
Title
Copyright
Contents
Dedication
Introduction to the student and teacher
Chapter 1 The foundations of economics
1.1 Scarcity, choice and opportunity cost
1.2 Economics as a social science
1.3 Central themes
Section 1 Microeconomics
Chapter 2 Competitive markets: demand and supply
2.1 Introduction to competitive markets
2.2 Demand
2.3 Supply
2.4 Market equilibrium: demand and supply
2.5 Linear demand and supply functions and market equilibrium (higher level topic)
2.6 The role of the price mechanism and market efficiency
Chapter 3 Elasticities
3.1 Price elasticity of demand (PED)
3.2 Cross-price elasticity of demand (XED)
3.3 Income elasticity of demand (YED)
3.4 Price elasticity of supply (PES)
Chapter 4 Government intervention
4.1 Indirect taxes
4.2 Indirect (excise) taxes: market outcomes, social welfare and tax incidence (higher level topic)
4.3 Subsidies
4.4 Subsidies: market outcomes and social welfare (higher level topic)
4.5 Price controls
Chapter 5 Market failure
5.1 The meaning of market failure: allocative inefficiency
5.2 Externalities: diverging private and social benefits and costs
5.3 Negative externalities of production and consumption
5.4 Positive externalities of production and consumption
5.5 Lack of public goods
5.6 Common access resources and the threat to sustainability
5.7 Asymmetric information (higher level topic)
5.8 Abuse of monopoly power (higher level topic)
5.9 The problem of government failure (policy failure) (supplementary material)
Chapter 6 The theory of the firm I: Production, costs, revenues and profit (Higher level topic)
6.1 Production in the short run: the law of diminishing returns
6.2 Introduction to costs of production: economic costs
6.3 Costs of production in the short run
6.4 Production and costs in the long run
6.5 Revenues
6.6 Profit
6.7 Goals of firms
Chapter 7 The theory of the firm II: Market structures (Higher level topic)
7.1 Perfect competition
7.2 Monopoly
7.3 Monopolistic competition
7.4 Oligopoly
7.5 Price discrimination
Section 2 Macroeconomics
Chapter 8 The level of overall economic activity
8.1 Economic activity
8.2 Measures of economic activity
8.3 Calculations of GDP (higher level topic)
8.4 The business cycle
Chapter 9 Aggregate demand and aggregate supply
9.1 Aggregate demand (AD) and the aggregate demand curve
9.2 Short-run aggregate supply and short-run equilibrium in the AD-AS model
9.3 Long-run aggregate supply and long-run equilibrium in the monetarist/new classical model
9.4 Aggregate supply and equilibrium in the Keynesian model
9.5 Shifting aggregate supply curves over the long term
9.6 Illustrating the monetarist/new classical and Keynesian models
9.7 The Keynesian multiplier (higher level topic)
9.8 Understanding aggregate demand and the multiplier in terms of the Keynesian cross model (supplementary material, recommended for higher level)
Supplementary material for Chapter 9
Chapter 10 Macroeconomic objectives I: Low unemployment, low and stable rate of inflation
10.1 Low unemployment
10.2 Low and stable rate of inflation
10.3 Topics on inflation (higher level topics)
Chapter 11 Macroeconomic objectives II: Economic growth and equity in the distribution of income
11.1 Economic growth
11.2 Equity in the distribution of income
Chapter 12 Demand-side and supply-side policies
12.1 Introduction to demand-side policies
12.2 Fiscal policy
12.3 Monetary policy
12.4 Supply-side policies
12.5 Evaluating government policies to deal with unemployment and inflation
Section 3 International economics
Chapter 13 International trade
13.1 The benefits of trade
13.2 Free trade: absolute and comparative advantage (higher level topic)
13.3 The World Trade Organization (WTO)
13.4 Restrictions on free trade: trade protection
13.5 Arguments for and against trade protection
Chapter 14 Exchange rates and the balance of payments
14.1 Freely floating exchange rates
14.2 Government intervention
14.3 Calculations using exchange rates (higher level topic)
14.4 The balance of payments
14.5 The balance of payments and exchange rates
14.6 Topics on exchange rates and the balance of payments (higher level topics)
Chapter 15 Economic integration and the terms of trade
15.1 Economic integration
15.2 Terms of trade (higher level topic)
Section 4 Development economics
Chapter 16 Understanding economic development
16.1 Economic growth and economic development
16.2 Measuring economic development
Chapter 17 Topics in economic development
17.1 The role of domestic factors
17.2 The role of international trade barriers
17.3 Trade strategies for economic growth and development
Chapter 18 Foreign sources of finance and foreign debt
18.1 The meaning of foreign sources of finance
18.2 Foreign direct investment and multinational corporations (MNCs)
18.3 Foreign aid
18.4 Multilateral development assistance
18.5 The role of international debt
Chapter 19 Consequences of economic growth and the balance between markets and intervention
19.1 Consequences of economic growth
19.2 Balance between markets and intervention
Supplementary materials
Introduction to the CD-ROM
Quantitative techniques
Introduction to the IB Economics exam papers
Exam practice: paper 1 (SL and HL)
Exam practice: paper 2 (SL and HL)
Exam practice: paper 3 (HL)
Important diagrams to remember
World Bank country classification
The Nobel Prize in Economics
Glossary
Index
Acknowledgements