IB Economics HL 2.7.3 Consequences of intervention
IB Economics HL 2.7.3 Consequences of intervention
Students practise evaluating whether interventions achieve stated objectives—weighing efficiency, equity, sustainability, and unintended consequences using text-based evidence.
How this is tested
- evaluate subsidy effectiveness by comparing short-run affordability gains against long-run fiscal strain
- assess price ceilings by linking shortage size to PED and PES in data or case studies
- judge price floor inefficiency by identifying deadweight loss and the volume of excess supply