Economics

Courses offered:

Economics (HL) Economics (SL)

High School Economics is not a pre-requisite for universities courses. Those wanting to take Economics at university however should be aware that a few universities do require HL Mathematics. An IB Diploma containing Economics and Business and Management needs to be carefully considered, as some universities prefer a broad balance of subjects. However, Economics is an excellent complement to the other Humanities.

In order to undertake HL Economics students are expected to achieve at least a B in IGCSE International Maths and their IGCSE Humanities.

1. What is the nature of Economics at IB level?

The course attempts to provide students with the concepts and intellectual skills required to interpret the complex economic world, as well as offering an insight into the economic interdependence of nations and the specific economic challenges confronting mankind. The aim at both higher and standard levels is that students should gain a clear understanding of elementary micro- and macro-economic topics.

Students learn to appreciate the limitations of economic theory and economic models. They learn in particular to distinguish statements of fact from value-judgments.

The course should provide a basis for further study of Economics at university, but it also serves as a good general introduction to economic issues for those who do not intend to continue the subject beyond school.

2. What is the approach to learning?

Learning is active and students are encouraged to develop a capacity for independent study.

3. What is the subject content?

HL & SL

Unit 1 Introduction to economics

1.1 What is economics? 1.2 How do economists approach the world?

Unit 2 Macroeconomics

2.1 Demand (includes HL only sub-topics) 2.2 Supply (includes HL only sub-topics) 2.3 Competitive market equilibrium 2.4 Critique of the maximizing behaviour of consumers and producers 2.5 Elasticity of demand (includes HL only sub-topics) 2.6 Elasticity of supply (includes HL only sub-topics) 2.7 Role of government in microeconomics (includes HL only calculation) 2.8 Market failure—externalities and common pool or common access resources (includes HL only calculation) 2.9 Market failure—public goods 2.10 Market failure—asymmetric information (HL only) 2.11 Market failure—market power

2.12 The market’s inability 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 (includes HL only calculation) 3.4 Economics of inequality and poverty (includes HL only calculation) 3.5 Demand management (demand side policies)—monetary policy (includes HL only sub-topics) 3.6 Demand management—fiscal policy (includes HL only sub-topics) 3.7 Supply-side policies

Unit 4 The global economy

4.1 Benefits of international trade (includes HL only subtopics and calculation) 4.2 Types of trade protection (includes HL only calculations) 4.3 Arguments for and against trade control/protection 4.4 Economic integration 4.5 Exchange rates (includes HL only sub-topic) 4.6 Balance of payments (includes HL only sub-topics) 4.7 Sustainable development (includes HL only sub-topic) 4.8 Measuring development 4.9 Barriers to economic growth and/or economic development 4.10 Economic growth and/or economic development strategies.

At SJII, all sections involve a study of relevant elements of the economy of Singapore and other countries.

4. What is the nature of assessment?

During the course there is regular assessment using a variety of methods. The final assessment consists of the following external examinations and internal assessment:

HL External assessment consists of three examinations worth 80% in total. 20% 1 hour 15 minutes Paper 1

An extended response (essay) on a topic from the syllabus content (25 marks) Students answer one question from a choice of three.

30% 1 hour and 45 minutes Paper 2

A data response paper on all syllabus content (40 marks) Students answer one question from a choice of two.

30% 1 hour 45 minutes Paper

A policy paper (60 marks) Students answer two compulsory questions on all syllabus content. (30 marks per question)

20% Internal Assessment

Students are required to produce a portfolio of three commentaries on extracts from current news topics (derived from print or internet sources) during the year.

SL External assessment consists of two examinations worth 70% in total. 30% 1 hour 15 minutes Paper 1

An extended response or essay paper on a topic from the syllabus content (25 marks) Students answer one question from a choice of three.

40% 1 hour and 45 minutes Paper 2

A data response paper on all syllabus content (40 marks) Students answer one question from a choice of two.

30% Internal Assessment

Students are required to produce a portfolio of three commentaries on extracts from current news topics (derived from print or internet sources) during the year.