IB Prospectus 2027 - Flipbook - Page 33
Economics (available at HL and SL)
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.
At the heart of economic theory is the problem of scarcity and choice. Much of what we study in economics is about problem
solving and decision making. While the world’s population has unlimited needs and wants, there are limited resources to satisfy
these needs and wants. As a result of this scarcity, choices have to be made. Many of the issues we look at in economics are
controversial, for example, the extent to which we want to provide for our needs and wants through state intervention or through
the market system. We also look at markets that fail, and how these problems can be recti昀椀ed. We look at di昀昀erent approaches to
development and reducing inequality.
At both levels, the course uses economic theories to examine the ways in which
these choices are made:
• at the level of producers and consumers in individual markets
(microeconomics)
• at the level of the government and the national economy (macroeconomics)
• at an international level where countries are becoming increasingly
interdependent through international trade and the movement of labour and
capital (the global economy).
Units covered:
• Introduction to Economics - Exploring questions like ‘what is economics?’
and ‘how do economists approach the world?’
• Microeconomics - Studying concepts like supply, demand, government
intervention, and market failure.
• Macroeconomics - Studying measures of economic activity, macroeconomic
objectives, demand-side policies, and supply-side policies.
• The Global Economy - The bene昀椀ts of international trade, protectionism,
exchange rates, balance of payments, sustainable development, and
barriers/strategies to development.
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