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Clear editor. 1.0 Introduction to Economics; 1.1 Competitive markets, demand and supply; 1.2 Elasticities; 1.3 Government intervention in markets; 1.4 Market failure; 1.5 Theory of the firm; Section 2 Macro. The academy was established in 2008 to help and support students of International Baccalaureate (IB MYP, IB DP). Introducing the Theory of the Firm. More OLYMPUS ib 1.6.3731. This product includes 8 IB Diploma Programme QuestionBanks, brought to you by the IB Documents Team. Scarcity, Governments, and Economists.   Your previous content has been restored. | IB Economics. IGCSE Accounting IGCSE Business Studies IGCSE Economics Preparing for competitions? You can purchase a licence for Questionbank at the IB store. Purchase a licence. I have also been uploading this onto the OCC, the forum for IB teachers, for too many years to remember. Topper is the only thing you will need to out perform your batchmates and get close to that perfect 45. Chapter 04. 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Privacy policy, 1.1 Competitive markets: Demand and supply, The non-price determinants of demand (factors that change demand or shift the demand curve), Movements along and shifts of the demand curve, Linear demand functions (equations), demand schedules and graphs, The non-price determinants of supply (factors that change supply or shift the supply curve), Movements along and shifts of the supply curve, Linear supply functions, equations and graphs, Calculating and illustrating equilibrium using linear equations, Price elasticity of demand and its determinants, Applications of price elasticity of demand, Cross price elasticity of demand and its determinants, Applications of cross price elasticity of demand, Income elasticity of demand and its determinants, Applications of income elasticity of demand, Price elasticity of supply and its determinants, Applications of price elasticity of supply, Specific (fixed amount) taxes and ad valorem (percentage) taxes and their impact on markets, Tax incidence and price elasticity of demand and supply, Price ceilings (maximum prices): rationale, consequences and examples, Price floors (minimum prices): rationale, consequences and examples, Market failure as a failure to allocate resources efficiently, Negative externalities of production and consumption, Positive externalities of production and consumption, Common access resources and the threat to sustainability, 1.5 Theory of the firm and market structures (HL only), Production in the short run: the law of diminishing returns, Production in the long run: returns to scale, Total revenue, average revenue and marginal revenue, Economic profit (sometimes known as abnormal profit) and normal profit (zero economic profit occurring at the breakeven point), The advantages and disadvantages of monopoly compared with perfect competition, Monopolistic competition compared with perfect competition and monopoly, Necessary conditions for the practice of price discrimination, 2.1 The level of overall economic activity, Measures of economic activity: gross domestic product (GDP), and gross national product (GNP) or gross national income (GNI), Short-term fluctuations and long-term trend, 2.2 Aggregate demand and aggregate supply, The determinants of AD or causes of shifts in the AD curve, Shifting the aggregate supply curve over the long term, Equilibrium in the monetarist/new classical model, The meaning of inflation, disinflation and deflation, Possible relationships between unemployment and inflation, The meaning of equity in the distribution of income, The relationship between equity and efficiency, Fiscal policy and short-term demand management, Fiscal policy and its impact on potential output, Interest rate determination and the role of a central bank, Monetary policy and short-term demand management, The strengths and weaknesses of supply-side policies, Restrictions on free trade: Trade protection, Arguments for and against trade protection (arguments against and for free trade), Determination of freely floating exchange rates, Evaluation of different exchange rate systems, The components of the balance of payments accounts, The relationship between the current account and the exchange rate, Implications of a persistent current account deficit, Methods to correct a persistent current account deficit, The Marshall-Lerner condition and the J-curve effect, Implications of a persistent current account surplus, Consequences of changes in the terms of trade, The nature of economic growth and economic development, Common characteristics of economically less developed countries, Diversity among economically less developed nations, Domestic factors and economic development, International trade and economic development, Trade problems facing many economically less developed countries, Trade strategies for economic growth and economic development, 4.5 The role of foreign direct investment (FDI), Foreign direct investment and multinational corporations (MNCs), Advantages and disadvantages of FDI for economically less developed countries, 4.6 The roles of foreign aid and multilateral development assistance, The roles of the International Monetary Fund (IMF) and the World Bank, 4.8 The balance between markets and intervention, Strengths and weaknesses of market-oriented policies, Strengths and weaknesses of interventionist policies. 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