Ch 13 2.12 The market's inability to achieve equity (HL): complete notes

Neat, exam-ready notebook-style notes for Ch 13 2.12 The market's inability to achieve equity (HL), 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 13 2.12 The market's inability to achieve equity (HL) 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
Income, wealth and equity: what the market does AO2
Why the market gives no promise of fairness
The circular flow and inequality AO2
Reading the diagram: the chain
Why factor incomes differ: labour markets AO2 AO4
Wealth, inheritance and cumulative effects AO2
Other ways the market can fail on equity

“I can” checklist: what you must be able to do

HL: I can distinguish income from wealth and equity from equality.
HL: I can explain how the workings of a free market may result in unequal distribution of income and wealth.
HL: I can draw a circular flow diagram that shows why a free market results in inequalities.
HL: I can use labour market diagrams to explain wage differences and the effect of falling demand.
HL: I can explain how inheritance, saving and unequal access to education reinforce inequality.
HL: I can calculate income shares, ratios and the effect of a tax and transfer on them.

What is inside the full chapter notes

Concept notes with 5 worked examples (every number computed)
Diagrams: circular flow with unequal households, two labour markets, self-reinforcing loops
Common mistakes and a "How to score" command-term box
12 Quick-check questions A-D, explained
Paper 2 style data response (28 marks) and Paper 3 style policy question (18 marks)
Quick reference and "I can" checklist

See real pages (free sample)

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 12 2.11 Market failure: market power (HL) Ch 14 3.1 Measuring economic activity and illustrating its variations →