Practise 4.4.9 (HL) Monetary union evaluation in IB Economics HL by reviewing the concepts and applying them to marked questions.
Using real-world examples, discuss whether a country would benefit from joining other countries in a monetary union.
Answers may include:
- Terminology: monetary union.
- Diagram: AD/AS diagrams to illustrate the impacts of monetary union membership on the economy, trade protection diagram, which identifies the advantages and disadvantages of monetary union membership, PPC diagram, or any other relevant diagram.
- Theory: may include consideration of the benefits arising from monetary union membership, including greater access to markets, free movement of labour and greater employment possibilities, stronger bargaining power at the global level, and reduced uncertainty over the exchange rate.
- Synthesis (discuss): costs of monetary union membership, including the loss of independent monetary policy, loss of exchange rate policy, restricted independence over fiscal policy, loss of sovereignty, and challenge to multilateral trading negotiations. Consideration of whether the benefits outweigh the costs of monetary union membership;
a consideration that some members of the monetary union may experience more benefits/costs from monetary union membership than other members. Overall assessment.
- Example(s): candidates are likely to consider the European Union (EU).
Assessment Criteria
Marks
Level descriptor
0
- The work does not reach a standard described by the descriptors below.
1-3
- The response indicates little understanding of the specific demands of the question.
- Economic theory is stated but it is not relevant.
- Economic terms are stated but they are not relevant.
- The response contains no evidence of synthesis or evaluation.
- A real-world example(s) is identified but it is irrelevant.
4-6
- The response indicates some understanding of the specific demands of the question.
- Relevant economic theory is described.
- Some relevant economic terms are included.
- The response contains evidence of superficial synthesis or evaluation.
- A relevant real-world example(s) is identified.
7-9
- The response indicates understanding of the specific demands of the question, but these demands are only partially addressed.
- Relevant economic theory is partly explained.
- Some relevant economic terms are used appropriately.
- Where appropriate, relevant diagram(s) are included.
- The response contains evidence of appropriate synthesis or evaluation but lacks balance.
- A relevant real-world example(s) is identified and partly developed in the context of the question.
10-12
- The specific demands of the question are understood and addressed.
- Relevant economic theory is explained.
- Relevant economic terms are used mostly appropriately.
- Where appropriate, relevant diagram(s) are included and explained.
- The response contains evidence of appropriate synthesis or evaluation that is mostly balanced.
- A relevant real-world example(s) is identified and developed in the context of the question.
13-15
- The specific demands of the question are understood and addressed.
- Relevant economic theory is fully explained.
- Relevant economic terms are used appropriately throughout the response.
- Where appropriate, relevant diagram(s) are included and fully explained.
- The response contains evidence of effective and balanced synthesis or evaluation.
- A relevant real-world example(s) is identified and fully developed to support the argument.