IB Economics HL/SL
Comprehensive IB Economics guide covering microeconomics, macroeconomics, international economics, and development economics. Includes diagram practice, evaluation frameworks, and extended response techniques.
Topics Covered
What you get
1. Introduction & Microeconomics Foundations
1. THE NATURE OF ECONOMICS. Economics is the social science that studies how individuals, firms, and governments allocate scarce resources to satisfy unlimited wants. The fundamental problem is scarcity: resources are finite, wants are unlimited — choice is unavoidable. Every economy must answer three central questions: • What to produce (which goods and services). • How to produce them (which combinations of resources and technology). • For whom to produce (how output is distributed). Economics is split into microeconomics (individual markets, firms, and households — Units 2, plus theory of the firm at HL) and macroeconomics (whole-economy measures: growth, inflation, unemployment, the global economy — Units 3 & 4).
Sample Flashcards
Define scarcity, choice, and opportunity cost. Show how they are connected.
Scarcity: resources are finite while wants are unlimited. Choice: scarcity forces decisions about how to use limited resources. Opportunity cost: the value of the next best alternative forgone when a choice is made. Connection: scarcity → choice → opportunity cost.
List and define the four factors of production and the income each earns.
• Land — natural resources (minerals, forests, water, land itself). Earns rent. • Labour — physical and mental human effort. Earns wages/salaries. • Capital — man-made goods used to produce other goods (machinery, factories, computers).
Sample Key Terms
Scarcity
The fundamental economic problem: resources are finite but human wants are unlimited, forcing choice.
Opportunity Cost
The value of the next best alternative forgone when a choice is made. Distinct from accounting cost — covers all alternatives, not just monetary outlay.
Factors of Production
Resources used to make goods and services: land (natural), labour (human), capital (man-made productive assets), and entrepreneurship (organisation and risk-bearing).
What's Covered
- 1. Introduction & Microeconomics Foundations
- 2. Demand, Supply & Market Equilibrium
- 3. Market Failure & Government Intervention
- 4. Macroeconomics: GDP, Inflation & Unemployment
- 5. The Global Economy: Trade, Exchange Rates & Development
- 6. Assessment & Internal Assessment
6 topics · 65+ flashcards · quizzes & matching games included
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