Unit 1 Introduction to economics

1.1 What is economics?

1.2 How do economists approach the world?

Unit 2 Microeconomics

2.1 Demand

2.2 Supply

2.3 Competitive market equilibrium

2.5 Elasticities of demand

2.6 Elasticity of supply

2.7 Role of government in microeconomics

2.8 Market failure - externalities and common pool or common access resources

2.9 Market failure - public goods

Unit 3 Macroeconomics

3.1 Measuring economic activity and illustrating its variations

3.2 Variations in economic activity - aggregate demand and aggregate supply

3.3 Macroeconomic objectives

3.4 Economics of inequality and poverty

3.5 Demand management - monetary policy

3.6 Demand management - fiscal policy

3.6.1—Fiscal policy

3.6.2—Fiscal policy goals

3.6.3—Expansionary and contractionary fiscal policy

3.6.5—Effectiveness of fiscal policy

3.7 Supply-side policies

Unit 4 The global economy

4.1 Benefits of international trade

4.2 Types of trade protection

4.3 Arguments for and against trade control/protection

4.4 Economic integration

4.5 Exchange rates

4.6 Balance of payments

4.7 Sustainable development

4.8 Measuring development

4.9 Barriers to economic growth and/or economic development

4.10 Economic growth and/or economic development strategies

IB Economics HL 3.6.4 (HL)—Keynesian multiplier Question Bank

• The Keynesian multiplier equals 1 / (1 - MPC) or 1 / (MPS + MPT + MPM)

• MPC is marginal propensity to consume; MPS to save; MPT to tax; MPM to import

• Calculation [HL]: Keynesian multiplier

• Calculation [HL]: effect on GDP from a change in investment, government spending, or exports

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