International Baccalaureate Syllabus

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
2.4 Critique of maximizing behaviour of consumers and producers (HL only)
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
2.10 Market failure (HL only)
2.11 Market failure – market power (HL only)
2.12 The market’s ability to achieve equity (HL only)

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 (demand-side policies): monetary policy
3.6 Demand management: fiscal policy

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 World Trade Organization (WTO) and trade liberalization
4.5 Trading blocs and bilateral/multilateral trade agreements
4.6 Terms of trade (HL only)
4.7 Exchange rates
4.8 Balance of payments
4.9 Globalization
4.10 Economic development
4.11 Barriers to economic development
4.12 Strategies to promote economic development
4.13 Foreign aid and multilateral development assistance
4.14 Foreign direct investment (FDI), multinational corporations (MNCs) and development
4.15 The role of international debt
4.16 The role of the International Monetary Fund (IMF) and the World Bank
4.17 Development strategies: evaluation and comparison