Economics

Course summary

Economics is an exciting, dynamic subject that allows students to develop an understanding of the complexities and interdependence of economic activities in a rapidly changing world. At the heart of economic theory is the problem of scarcity and choice. Much of what we study in economics is about problems solving and decision making. While the world’s population has unlimited needs and wants, there are limited resources to satisfy these needs and wants. As a result of this scarcity, choices have to be made. Many of the issues we look at in economics are controversial, for example, the extent to which we want to provide for our needs and wants through state intervention or through the market system. We also look at markets that fail, and how these problems can be rectified. We look at different approaches to development and reducing inequality. At both SL and HL, the course uses economic theories to examine the ways in which these choices are made: • at the level of producers and consumers in individual markets (microeconomics). • at the level of the government and the national economy (macroeconomics). • at an international level where countries are becoming increasingly interdependent through international trade and the movement of labour and capital (the global economy). You will produce three IA’s over the course of the two years, in the past students have looked at issues like the impact and causes of the energy crisis and the impact of climate change.