HL1 / SL1 IB ECONOMICS COURSE OVERVIEW:

FOURS SECTIONS OF THE COURSE MICROECONOMICS eg: focus on companies and industries. MACROECONOMICS eg: focus on the economy at the national level: unemployment, inflation, GDP. INTERNATIONAL ECONOMICS eg: trading relationships between countries DEVELOPMENT ECONOMICS eg: foreign aid & foreign direct investment

IB COURSE THEORY AUGUST 2015 INTRODUCTION TO ECONOMICS Definition of Economics: Scarcity The Economic Problem – 3 Questions. Factors of Production (4) Production Possibilities Model

IB COURSE THEORY AUGUST 2015 Comparative Economic Systems Communism, Socialism and Capitalism. Country Case Studies, the former USSR, Cuba & China today. Why communism failed as political and economic system.

IB COURSE THEORY ECONOMIC INDICATORS: SEPT 15 GROSS DOMESTIC PRODUCT (GDP) & GROSS NATIONAL PRODUCT (GNP) GDP as a measure of Economic Growth. GDP per capita. Nominal vs Real GDP (eg: Inflation) Calculating GDP, different methods. GDP & Purchasing Power Parity (PPP)

IB COURSE THEORY ECONOMIC INDICATORS: SEPT 15 INFLATION & DELFATION Cost Push vs Demand Pull Inflation. The Consumer Price Index (CPI): Calculating Price Indices. Reducing Inflation: Contractionary Monetary & Fiscal Policy. Inflation Targeting: Central Banks The Danger of Deflation. (Japan Case Study)

IB COURSE THEORY ECONOMIC INDICATORS: SEPT 15 UNEMPLOYMENT Types of Unemployment: Structural, Frictional, Seasonal and Cyclical Unemployment. Calculating the unemployment rate for a country. Reducing Unemployment: Expansionary Fiscal & Monetary Policy. Advantages/disadvantages of these policies.

MICROECONOMICS OCTOBER 2015 INTRODUCTION TO SUPPLY & DEMAND GRAPHICAL MODELING Law of Demand / Demand Schedules. Law of Supply / Supply Schedules. Market Equilibrium Supply & Demand Functions (calculations)

MICROECONOMICS OCTOBER 2015 Government Intervention Indirect Taxes. Subsidies Price Controls Price Ceilings & Price Floors

MICROECONOMICS NOVERMBER 2015 ELASTICITY THEORY Price Elasticity of Demand (PED) Income Elasticity of Demand (YED) Cross Elasticity of Demand (XED) Price Elasticity of Supply (PES) Elasticity & Business Pricing Strategies.

DECEMBER 2015 REVIEW FOR SEMESTER FINAL EXAM

MICROECONOMICS JANUARY 2016 THE THEORY OF THE FIRM Production in the Short Run & Long Run Law of Diminishing Returns Costs of Production. Revenue Theory for Firms Profit Theory for Firms

MICROECONOMICS FEBRUARY 2016 MARKET STRUCTURES & COMPETITION THEORY Perfect Competition. Monopolistic Competition. Oligopolies & Duopolies Monopoly Market Power. Anti Trust Regulators. (eg: DOJ & FTC in the US)

MICROECONOMICS MARCH 2016 MARKET FAILURE Negative Externalities of Production (eg: pollution) Negative Externalities of Consumption (eg: smoking) Positive Externalities of Production (eg: work training) Positive Externalities of Consumption (eg: health care)

MACROECONOMICS APRIL 2016 AGGREGATE DEMAND & AGGREGATE SUPPLY Short Run & Long Run Perspectives. Macroeconomic Equilibrium. The Multiplier Effect – calculations. Keynesian Economic Theory vs Classical School of Economics

MACROECONOMICS (HL) MAY 2016 HIGHER LEVEL CONCEPTS IN UNEMPLOYMENT & INFLATION Minimum Wage Theory: Keynesian vs Classical School. Short Run/Long Run Philips Curve. Economic modelling with inflation.

MACROECONOMICS (HL) MAY 2016 MACROECONOMIC MANAGEMENT Monetary Policy Fiscal Policy Supply Side Policies: Market Oriented vs Interventionist Strategies:

JUNE 2016 SEMESTER 2 FINAL EXAM

INTERNATIONAL ECONOMICS AUGUST-SEPTEMBER 2016 Why Countries Trade: Absolute & Comparative Advantage. Protectionism & Free Trade Theory Economic Integration. Free Trade Agreements.

INTERNATIONAL ECONOMICS OCTOBER-NOVEMBER 2016 Exchange Rates Exchange Rate Case Studies (Zimbabwe & Venezuela) Review of Supply & Demand Functions with Foreign Exchange Foreign Exchange & International Business. Introduction to the Balance of Payments

THEORY OVERVIEW DECEMBER 2016 REVIEW OF THEORY FOR SEMESTER 1 FINAL EXAM

INTERNATIONAL ECONOMICS JANUARY 2017 The Balance of Payments (BOP) Solutions to BOP problems. The Marshall Lerner Condition. The J Curve The Terms of Trade

DEVELOPMENT ECONOMICS FEBRUARY-MARCH 2017 Aid, Debt & Economic Development Development Strategies: Microfinance Foreign Direct Investment (FDI) UN Development Goals. Trade Strategies for Economic Growth & Development The World Bank & The IMF

THEORY OVERVIEW APRIL 2017 ENTIRE COURSE REVIEW NO NEW CONTENT

IB ECONOMICS EXAMS: MAY % - IB ECON GRADE Paper 1: 1.5 hours (Microeconomics & Macroeconomics) Paper 2: 1.5 hours (International Economics & Development) Paper 3: 1 hour (Calculations – all topics)

IB COMMENTARIES 20% IB ECON GRADE 3 Economic Commentaries to compete. Based on Economic Events: Select news articles and complete the following  Apply economic models / graphs to real world situations and events.  Apply appropriate economic theory.  Analyze & Evaluate a range of options for different stakeholders. (eg: business, government, unions, consumers) Short Term / Long term considerations.