How to study IB Economics’ latest syllabus?

IB Economics Latest syllabus. our IB Economics Tutors first explain the changes in IB economics syllabus and then teach students according to the way that IB expects. It icreases the efficiency of classes and ultimately results into a 7 to our students.

How to study IB Economics’ latest syllabus?

IB planned in August 2020 to put significant changes in the IB Economics syllabus, and it comes into action in the 2022 exams. So, the purpose behind the change is that IB teachers or IB students easily engage with each other. And enjoy stress-free teaching.Following are the changes in IB Economics:

B Economics Latest syllabus
  • Nine new concepts are taught: scarcity, equity, sustainability, choice, efficiency, intervention, economic well-being, change, and interdependence.
  • HL IB Economics responses to quantitative paper 2 and quantitative and qualitative paper 3 carry 60% weightage. It means both SL and HL contain quantitative calculations.
  • Student must demonstrate their work in the context of the real world.
  • IB Economics focuses on the key economic concepts.
  • Units 3 & 4 are combined in one unit, i.e., The global economy.
  • Unit 1 (Introduction to economics) is added again in the syllabus as a separate unit. Our learned IB Economics Tutors first explain all the changes to their students and then teach them according to the latest syllabus.

Where to start studying IB Economics?

In our IB Economics Tuition classes, we suggest to start preparing in the following way.

  1. Go through the IB Economics syllabus guide: You must properly understand the subject brief or syllabus outline. So, you get an idea of the new syllabus and can easily make a schedule according to it. 
  2. Mark all the changes: You have to highlight all the changes in the new syllabus that you have to study. For instance, teaching hours, topics, subtopics, weightage, removed and added topics, etc. 
  3. Pay more attention to IA commentaries & paper 3: According to the new syllabus for SL Economics, the weightage of IA commentaries is 30%. On the other hand, paper 3 of HL Economics increased by 10%, i.e., now its worth is 30%. So, you have to pay more attention to these two components.

You need to focus on the following IB Economics topics

What is economics?

  • The social behavior of economics.
  • What is the basis for studying microeconomics, economics, and macroeconomics?
  • The introduction of all the nine concepts of IB economics.
  • Factors of land production, labor production, capital, and entrepreneurship production.
  • How do fulfill human needs?
  • Sustainability and scarcity
  • Free goods
  • Choice for cost
  • How much production is needed and for whom?
  • Government Vs. market intervention.
  • All the economic systems.
  • Production possibilities curve model (PPC).
  • How to make the model for the economy?

How do economists approach the world?

  • What is the role of positive economics?
  • All the roles of normative economics.
  • What is economic thought?
  • What is the origin of the economic ideas in a historical context?
  • 18th, 19th, 20th, and 21st centuries, etc.

IB Economics Microeconomics latest Content 

1. Demand & 2. Supply

  • The relationship between quantity and price.
  • What are the substitution and income effects? (HL)
  • Diminishing and marginal utility law (HL)
  • The relationship between the market and an individual consumer’s demand.
  • What are non-price determinants of demand?
  • Diminishing marginal returns law (HL)
  • Rising marginal costs (HL)
  • The relationship between market and individual producer’s supply.
  • The supply for non-price determinants.

     3. Competitive market equilibrium

  • How does the supply and demand curve form a market equilibrium?
  • The resource allocation.
  • Rationing.
  • Producer and consumer surplus.
  • The competitive market equilibrium for allocative efficiency.

      4. Analysis of the behavior of producers and consumers

  • Choice of rational consumer (HL)
  • Assumptions and behavioral economics (HL)
  • Biases, imperfect information, bounded rationality, self-control, and selfishness.
  • The action of behavioral economics (HL)
  • Business objectives (HL)

  5.Elasticities of demand

  • The concept of elasticity.
  • Price elasticity of demand (PED)
  • The downward-sloping demand curve for changing PED along a straight line(HL)
  • Determinants of PED.
  • The relationship between total revenue and PED.
  • Income elasticity of demand (YED).
  • Importance of sign
  • Significance of YED (HL)
  • Price elasticity of supply (PES)

    6. What is the role of the government in microeconomics?

  • All the reasons for government intervention in the market.
  • Consumer nudges (HL)
  • Main forms of government intervention in markets.
  • Consumer nudges (HL)
  • The consequences for stakeholders and markets.

  7. Market failure

  • Socially optimum output (marginal social benefit equals marginal social cost)
  • Common pool resourcesGovernment intervention in response to common-pool resources and externalities.
  • Limitations and strengths of government policies to correct approaches and externalities.
  • The significance of international cooperation.
  • Response of government intervention to public goods.
  • Asymmetric information and its responses (HL)
  • Perfect competition, monopoly, imperfect competition, rational producer behavior, etc. (HL)
  • Market power degrees, oligopoly, monopolistic competition, etc. (HL)

    8. The market’s inability to acquire equity (HL only)

  • The result is unequal income and wealth distribution in the free market working economy. (HL)

IB Economics Macroeconomics latest content:

1.Measuring economic activity and demonstrating its variations

  • National income accounting
  • Nominal Gross Domestic Product (GDP) & Gross National Income (GNI) measures national output.
  • Real GNI and real GDP.
  • Business cycle.
  • Substitute measure of well-being.

      2.Variations in economic activity- aggregate demand and supply

  • Aggregate demand curve
  • Components of aggregate demand.
  • SRAS and determinants of SRAS curve.
  • Macroeconomic and short-run equilibrium.

     3.Macroeconomic objectives

  • Economic short-term and long-term growth.
  • Measurement and consequences of the economic growth.
  • Low unemployment.
  • Relative costs of inflation Vs. Unemployment.
  • Sustainable level of national government debt (HL)

  4.Economics of poverty and inequality

  • Linking between equity and equality.
  • What is the crux of economic inequality?
  • How do we measure economic inequality?
  • The proper meaning of poverty.
  • How do we measure poverty?

5. Demand management- monetary policy

  • Monetary policy and its goals.
  • How do commercial banks create money? (HL)
  • Monetary policy effectiveness.

6. Demand management- fiscal policy

  • Fiscal policy and its goals.
  • Keynesian multiplier (HL)
  • MPC, MPS, MPT, and MPM. (HL)

7. Supply-side policies

  • What are the goals of supply-side policies?
  • Market-based and interventionist policies.
  • Supply-side policies effectiveness.

The Global Economy latest content

1. International trade benefits

  • Absolute and comparative advantage. (HL)
  • The theory of comparative advantage limitations. (HL)

  3. Trade protection types

  • Tariffs, quotas, subsidies, and administrative barriers.

   4. Arguments against and for trade protection/control

  • Trade protection Vs. free trade

  5. Economic integration

  • Preferential trade agreements and trading blocs.
  • All the pros and cons of trading blocs.
  • Trade creation and trade diversion. (HL)

6. Exchange rates

  • Currency change in supply and demand.
  • Mixed and managed exchange rates.

7. Payment’s balance

  • The current account, financial account, and capital account.
  • Interlinking between the exchange rate and the current account. (HL)

8. Sustainable development

  • Goals of sustainable developments.
  • The relationship between poverty and sustainability. (HL)

9. Measuring development

  • Single and composite indicators.
  • What is the relationship between economic development and economic growth?

10. Barriers to economic development and economic growth

  • Poverty cycle and economic barriers.
  • What are the social and political barriers?
  • Importance of different barriers.
  • All the strategies to promote economic development and economic growth.
  • Institutional changes, etc.

How to tackle challenges while studying IB Economics?

You don’t need to worry about the new IB Economics syllabus. Just fabricate or organize an effective study schedule with our IB Online Economics Tutors.

  • Write all the methodologies in a separate notebook.
  • Analyze all the subject material.
  • Enhance your writing skills.
  • Use different revision techniques.
  • Memorize topics through concept mapping.
  • Set timer while solving past year’s papers.
  • Take part in different activities to test your knowledge.
  • Make a proper revision plan.
  • Be confident and think positively.
  • Take help from peers and IB Economics tutors.
  • Whether you choose IB HL or SL, you have to put effort into giving your best. Of course, you have to put much more effort into IB HL Economics than IB SL Economics.
  • So, according to it, you must improve your knowledge and skills. And also review each topic timely. And always remember that distraction is the enemy of productivity.
  • Thus, focus on what you learned in your school and your tuition classes. You succeed and gain a perfect 7 score.
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