IB Economics

Units to be covered
Grade 11
Section 1: Microeconomics
Section 2: Macroeconomics
Grade 12
Section 3: International economics
Section 4: Development economics

Assessment- [Internal and external]

(a) External assessment
Paper 1: Essay type questions from
section 1 and 2 of the syllabus.
Paper 2 : Data response questions from
section 3
and 4 of the syllabus.
Paper 3[HL] : Extension and numeracy
paper from all the 4 sections.

Paper 1 in details

Time allowed (1 hour and 30 minutes)

An extended response paper with two sections
Section A
Syllabus content: section 1 microeconomics
Students answer one question from a choice of
two. (25 marks)
Section B
Syllabus content: section 2 macroeconomics
Students answer one question from a choice of
two. (25 marks)

Paper 1 type question

1. (a) Explain how taxes and subsidies
differ in their effect on the market
price and quantity of a good.
[10 marks]

(b) It is essential that a government

supports its farmers by subsidizing
agricultural output. Evaluate this
view.
[15 marks]

Paper 2 in details

Time allowed (1 hour and 30 minutes)

A data response paper
(40 marks)
Section A
Syllabus content: section 3 International economics
Students answer one question from a choice of two.
(20 marks)
Section B
Syllabus content: section 4 development
economics
Students answer one question from a choice of two.
(20 marks)

Paper 2 type question

1. Study the extracts below and answer the questions that follow.
Europe risks trade war with China over tariff on Chinese car wheels
(1) The European Commission (EC) has imposed a 20.6 % tariff on car wheels imported from China in an attempt to
end a decline in sales and production by European companies. The EC launched an investigation into Chinese wheel
manufacturers after a complaint by the Association of European Wheel Manufacturers in June 2009 of dumping by
the Chinese. Chinese officials denied the claims and warned that any anti-dumping duties imposed could raise the
cost of repairs for consumers and slow the recovery of the European automotive sector.

(2) The EC claims that the recession, imports from Turkey and competition between manufacturers had all
negatively affected European manufacturers, but that dumped imports had caused a significant decrease of
production and sales as well as lower prices leading to losses for European Union (EU) firms.
Questions:

(a) Define the following terms indicated in bold in the text:

(i) dumping (extract 1, paragraph (1)) [2 marks]

(ii) recession (extract 1, paragraph (2)). [ 2 marks]

(b) Using an appropriate diagram, explain the effects on the market for car wheels in Europe if the European Union
(EU) had chosen to impose a quota instead of a tariff on car wheels imported from China. [ 4 marks]

(c) Using an appropriate demand and supply diagram, explain why the recession had negatively affected European
car wheel manufacturers (extract 1, paragraph (2)). [4 marks]

(d) Using information from the text/data and your knowledge of economics, evaluate the possible effects on
European economies of imposing tariffs on Chinese goods. [8 marks]

Paper 3 [HL only]

Time allowed
(1 hour)
HL extension paper
(50 marks)
Entire Syllabus content, including HL
extension material.
Students answer two questions from a
choice of three.
(25 marks per
question)

Paper 3 type question

1. The weekly supply and demand curves for oranges in a country are
given by:
Qd = 20 2P Qs = -4 + 2P
Where Qd and Qs are quantities in thousands of kilos and P is the
price per kilo in US$.
(a)Construct the supply and demand curve on the graph below.
Identify the Q intercept for the demand curve and the P intercept
for the supply curve in the diagram. [4 marks]
(b)Calculate the equilibrium price and quantity and identify them on
the graph constructed in (a). [4 marks]
(c)Calculate the Qd and Qs at the price of US$ 4 per kilo. Illustrate the
quantity of excess demand or excess supply in the graph. [2 marks]

(b) Internal Assessment

(IA)
This component is internally assessed by the
teacher and externally moderated by the IB at the
end of the course.
Students produce a portfolio of three
commentaries, based on different sections of the
syllabus and on published extracts from the news
media.
Maximum 750 words x 3 commentaries (45
marks)
Total weight = 20% of IB marks
Details on how to write IA will be provided
later

Summary of assessment [HL]

Assessment type

Weight (%)

P1 : Essay type: Micro and

Macro

30%
30%

P2 : Data response:
International
and Development
20%
P3 : Extension paper
20%
IA : 3 commentaries
TOTAL

100%

Summary of assessment
[SL] Weight (%)
Assessment type
P1 : Essay type:
Micro and Macro
P2 : Data response:
International and
Development

40%

40%

IA : 3 commentaries
20%
TOTAL
100%

Differences between HL and

SL
1. HL extensions in several core topics.
2. HL only topics mostly in
Microeconomics.
3. Paper 3 is HL only

An introduction to
Microeconomics
http://www.jrcs.bardaglea.org.uk/We
bsites/jorichardson/files/Content/2
058769/AS_Economics_Section_1_Micro
economics.pdf

You will retain:

10% of what you HEAR

30% of what you SEE
90% of what you DO
Therefore, Look, Listen
and Do!!!