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Ch 1 1.1-1.2 What is economics? and How do economists approach the world?: complete notes
Neat, exam-ready notebook-style notes for Ch 1 1.1-1.2 What is economics? and How do economists approach the world?, following the IB Diploma syllabus, SL and HL. This chapter is part of the complete Economics Notes for IB Diploma Students (SL and HL): All 30 Topics.
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Free preview: Ch 1 1.1-1.2 What is economics? and How do economists approach the world? notes
A quick look at the chapter from our IB Diploma Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- What you must be able to do
- The nine central concepts AO2
- Factors of production
- Scarcity
- Opportunity cost and free goods
- What the PPC shows
- The role of positive economics
- The role of normative economics
- Equity and equality
- From explain to evaluate
- Linking to the key concepts
“I can” checklist: what you must be able to do
- I can explain economics as a social science and distinguish microeconomics from macroeconomics.
- I can explain the nine central concepts and link them to examples.
- I can describe factors of production, scarcity, opportunity cost and free goods, and link scarcity to sustainability.
- I can explain the three basic economic questions and compare free market, planned and mixed economies.
- I can draw and use a PPC to show choice, opportunity cost (increasing and constant), unemployment of resources, actual growth and growth in production possibilities.
- I can draw the circular flow of income with leakages and injections and explain interdependence.
- I can distinguish positive from normative statements, and explain ceteris paribus, refutation, equity and equality.
- I can explain how economic ideas developed from Adam Smith to behavioural economics and the circular economy.
- I can answer a Paper 1 (a)/(b) question and a Paper 2 data response on this unit.
What is inside the full chapter notes
- Concept notes with 6 diagrams and 7 worked examples (all numbers checked)
- Links to the nine key concepts throughout
- "Applying it" box: an AO2 paragraph and an AO3 evaluation with a judgement
- Common mistakes and a command-term "How to score" box
- 12 Quick-check questions, explained
- Paper 1 style: part (a) [10] and part (b) [15] with mark schemes and markbands
- Paper 2 style: data response with parts (a)-(d) and (g), mark scheme and markband
- Quick reference sheet and "I can" checklist
What you get in the pack
- All 30 topics of IB Diploma Economics for students taking Standard Level or Higher Level (first assessment 2022): what economics is, demand, supply, market equilibrium, behavioural economics, elasticity, government intervention, externalities, public goods, asymmetric information, market power, equity, measuring economic activity, aggregate demand and supply, macroeconomic objectives, inequality and poverty, monetary policy, fiscal policy, supply-side policies, international trade, trade protection, economic integration, exchange rates, balance of payments, sustainable development, measuring development, growth and development strategies
- Every syllabus statement covered in order, each marked SL or HL, with clear notes, tables and diagrams drawn for these notes
- Every diagram the guide names, drawn and labelled, plus worked examples and model answers that show how to earn the marks
- Quick-check multiple-choice questions with explained answers, plus original Paper 1 (extended response), Paper 2 (data response) and, for HL, Paper 3 (policy) style questions with full mark schemes (no past-paper reprints)
- Common mistakes and a how-to-score command-term guide for every topic
- Quick-reference sheet and an "I can" checklist at the end of every topic
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes for IB Diploma students; not endorsed by or affiliated with the International Baccalaureate Organization (IBO)
All chapters in this pack
- Ch 1 1.1-1.2 What is economics? and How do economists approach the world?
- Ch 2 2.1 Demand
- Ch 3 2.2 Supply
- Ch 4 2.3 Competitive market equilibrium
- Ch 5 2.4 Critique of the maximizing behaviour of consumers and producers
- Ch 6 2.5 Elasticity of demand
- Ch 7 2.6 Elasticity of supply
- Ch 8 2.7 Role of government in microeconomics
- Ch 9 2.8 Market failure: externalities and common pool resources
- Ch 10 2.9 Market failure: public goods
- Ch 11 2.10 Market failure: asymmetric information (HL)
- Ch 12 2.11 Market failure: market power (HL)
- Ch 13 2.12 The market's inability to achieve equity (HL)
- Ch 14 3.1 Measuring economic activity and illustrating its variations
- Ch 15 3.2 Aggregate demand and aggregate supply
- Ch 16 3.3 Macroeconomic objectives
- Ch 17 3.4 Economics of inequality and poverty
- Ch 18 3.5 Demand management: monetary policy
- Ch 19 3.6 Demand management: fiscal policy
- Ch 20 3.7 Supply-side policies
- Ch 21 4.1 Benefits of international trade
- Ch 22 4.2 Types of trade protection
- Ch 23 4.3 Arguments for and against trade control and protection
- Ch 24 4.4 Economic integration
- Ch 25 4.5 Exchange rates
- Ch 26 4.6 Balance of payments
- Ch 27 4.7 Sustainable development
- Ch 28 4.8 Measuring development
- Ch 29 4.9 Barriers to economic growth and/or economic development
- Ch 30 4.10 Economic growth and/or economic development strategies