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Ch 26 4.6 Balance of payments: complete notes
Neat, exam-ready notebook-style notes for Ch 26 4.6 Balance of payments, 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 26 4.6 Balance of payments 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 balance of payments: structure AO1 AO2
- Calculating from data and the zero balance AO2 AO4
- Current account, financial account and the exchange rate AO2 AO4
- Persistent current account deficits and surpluses AO3
- Implications of a persistent deficit
- Implications of a persistent surplus
- Methods to correct a persistent current account deficit AO2 AO3
- The Marshall-Lerner condition and the J-curve effect AO2 AO4
“I can” checklist: what you must be able to do
- I can define credit and debit items and the surplus or deficit of an account.
- I can calculate the elements of a balance of payments from data, including the current account and the missing item.
- I can explain the items in the current, capital and financial accounts.
- I can explain why the balance of payments sums to zero.
- HL: I can draw and explain the relationship between the current account and the exchange rate, and the financial account and the exchange rate.
- HL: I can evaluate the implications of a persistent current account deficit and surplus.
- HL: I can explain and evaluate expenditure switching, expenditure reducing and supply-side policies.
- HL: I can explain the Marshall-Lerner condition and draw and explain the J-curve.
What is inside the full chapter notes
- Concept notes with 7 worked examples (every number computed)
- A full balance of payments with calculations and the zero-balance check
- HL diagrams: current account against the exchange rate, J-curve
- Common mistakes and a "How to score" command-term box
- 12 Quick-check questions A-D, explained (items 7 to 12 are HL)
- Paper 1 style (a) 10 + (b) 15 with mark scheme and markbands
- Paper 2 style data response (36 marks) with mark scheme
- HL practice question in the Paper 3 style (18 marks)
- Quick reference 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