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Units 1-2: Microeconomicsfree27 February 2020

This section of the Inthinking website is devoted to materials that support the new curriculum - that is, the curriculum that will first be assessed in May 2022, as well as the existing one assessed for... more

Unit 2.3: Competitive market equilibrium19 October 2021

When you combine the two variables of supply and demand, for any good or service, you arrive at the market equilibrium. This page also contains a number of examination style questions, as well as short... more

Paper 2 style examination questions12 October 2021

This section of the site contains 21 paper two style questions, written by the authors according to the new syllabus, starting August 2020. Each question is designed to be completed in around 85 minutes.... more

Paper 1 style examination questions11 July 2021

This section of the site provides you with the opportunity to set examination style questions for the new syllabus, starting August 2020. The following questions are all IB paper 1 in type and include... more

Unit 1-2.10: Microeconomics questions12 October 2021

This page contains 10 paper one style questions for the new syllabus. The questions were written by myself based on the information contained in the new curriculum document.1. (a) Explain how the burden... more

Unit 2.5: Price elasticity of demandfree25 October 2021

Until now your students will have largely worked on the assumption that demand is linear and that the relationship between selling price and quantity demanded was the same or at least similar for most... more

Paper 3 questions (HL only)13 September 2021

This page contains direct links to the paper three type questions on the site. Each question is marked out of 30 and include a policy response question to reflect the new syllabus requirements. more

Unit 2.1: Demandfree7 October 2021

Having completed the introductory units you will now be ready to begin the main part of the microeconomics course, with an understanding of markets. Start by explaining to your students that the market... more

Unit 2.5: Income elasticity of demand (YED)24 September 2021

This lesson focuses on the third type of elasticity in economics - income elasticity of demand or YED. I find that many IB students will confuse this concept with price elasticity of demand. You will... more

Unit 2.2: Supply free18 September 2021

This is the second part of the section on market equilibrium. I find that it is better to cover both demand and supply at the same time, rather than focus on each separately as the two concepts come... more

Unit 2.3: Competitive market equilibrium24 October 2021

Equilibrium in markets occurs where demand equals supply and the market-clearing price and output are established. The equilibrium price is known as the market-clearing price because at that moment in... more

Producer and consumer surplus26 October 2021

This is a short section on consumer and producer surplus. A simple way to introduce this topic is to write the name of a popular brand on the white board. This could be a basic food item or popular... more

Behavioural economics: Consumer biases / nudge theory (HL only)22 January 2021

This topic is new to the syllabus and recognises that the choices that consumers and producers choose is the outcome of complex decision making. Given the recent covid-19 related events this is also an... more

Unit 2.1-2.3: Competitive markets - demand and supplyfree16 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the first 3 microeconomics units, competitive markets. Under the previous... more

Unit 2.1-2.3: Multiple choice quiz7 December 2020

This quiz is also available as a PDF file at: Quiz on demand and supply more

Unit 2.1: Demand theory22 October 2021

Unit 2.1 is the first section in microeconomics. In our introduction to Economics, we considered the question of how resources are allocated in society and the first step to answering this question is... more

Paper 1: Extended response paper6 August 2021

This paper contributes 20% towards the final grade for HL students and 30% of the grade in SL. Candidates complete 1 question from a choice of 3, in an extended time of 1 hour and 15 minutes. Responses... more

Demand and supply, markets, resource allocation and market failure (HL and SL)free27 October 2021

This case study focuses on the impact of advances in technology on demand and supply, markets, resource allocation and market failure. This paper can be completed as a homework or classwork exercise and... more

Unit 2.5(1): Price elasticity of demand (PED)25 October 2021

Elasticity is an economic concept based on change. It measures how consumers and producers respond to changes in variables that affect demand and supply. Elasticity is important because it allows us to... more

Unit 2.4: Consumer and producer behaviour (HL only)free11 January 2021

Under the previous curriculum this page would have been included in the section on consumer utility and can also be used as the basis for a TOK exercise. Under the new syllabus this section has been... more

Textbook5 April 2021

textThe aim of this book is to support students and teachers as they follow the new IB Economics course specification which starts in 2020 and has its first assessment examinations in 2022. more

Absolute and comparative advantage (HL only)18 October 2021

This page contains exercises on comparative and absolute advantage. These are paper three type in style and provide good practise for your classes. Students will often get the two terms confused and... more

Unit 2.5-2.6: Elasticityfree16 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the microeconomics unit,2.5-2.6: Elasticity. You will notice that under... more

Unit 2.6: Price elasticity of supplyfree13 October 2021

This lesson focuses on the price elasticity of supply. You will have already established that there is a direct relationship between the price of a product and the level of quantity supplied. However,... more

Inequality3 September 2021

This lesson focuses on the level of income equality in the country. A good way to start this lesson off is with the simple question: 'has income inequality, within your country, got better or worse in... more

Unit 4.2-4.3: Trade protectionfree21 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the global economics unit, unit 4.2: Types of trade protection and 4.3:... more

Unit 2.4(1): Behavioural economics (HL)25 October 2021

Behavioural economics considers consumer behaviour in a more complex way than classical economic theory. It introduces human psychology into the buyer decision-making process and considers how factors... more

Chapter 2: Microeconomics8 January 2021

This chapter includes the remaining units in microeconomics. Demand and supply make up the market equilibrium section, while the units (1.3-1.5) covered under the old syllabus, are now covered by units... more

Barriers to tradefree12 October 2021

This lesson focuses on the different types of trade protectionism which a government may employ. The page is effectively decided into two parts, the first looks at justifications for trade protection... more

Unit 3.2: Variations in economic activity—aggregate demand and aggregate supplyfree21 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the macroeconomics unit, unit 3.2: Aggregate demand and supply. Typically... more

Unit 2.2: Supply theory22 October 2021

In this chapter, we examine the way supply affects the allocation of resources in the economy. Supply is the resource element of the central economic problem of scarcity and the allocation of the factors... more

Unit 1.1: Introduction to Economics18 October 2021

This unit is an introduction to Economics. It starts by looking at the fundamental economic problem of scarcity and develops this by considering how scarcity leads to choice and opportunity cost. The... more

Benefits of international tradefree18 October 2021

This lesson introduces the concept of international benefit and looks at the benefits of international trade. I would advise you to begin this lesson by starting with the question: how do your students... more

Veblen goods and super luxury goods15 October 2019

Until now on the IB economics course it has been assumed that the relationship between the price and quantity demanded of all products is inverse. While this is true for the vast majority of goods and... more

Paper 2: Data response paper29 June 2021

Paper two makes up 30% of the final grade at Higher level and 40% at Standard level. This paper now contains just two questions and candidates are required to answer one of these in one hour and 45 minutes. more

Unit 4.1: Benefits of international tradefree21 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the first global economics unit, unit 4.1: International trade. more

Unit 3.3: Macroeconomic objectivesfree21 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the macroeconomics unit, unit 3.3. Typically each lesson plan includes... more

Unit 3.4: Economics of inequality and povertyfree21 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the macroeconomics unit, unit 3.4. Under the new syllabus the economics... more

Unit 3: Macroeconomics 2 July 2021

This page contains 5 paper one style questions for the new syllabus on macroeconomics. The questions were written by myself based on the information contained in the new curriculum document. All questions... more

Price controls − maximum price 16 July 2021

This lesson focuses on the impact of a maximum price on the market for a good or service. At first glance many of your students may be supportive of a maximum price on certain goods and services. This... more

Paper 1: Extended response paper HL (a)free11 July 2021

This section includes a sample question for the new paper 1 examination, the extended data response paper. This question was completed as an exercise in 75 minutes. Read through the response and provide... more

Unit 4.5: Exchange ratesfree21 July 2021

This is a link page to sub-pages, containing lesson plans and learning activities, which provide activities and lesson plans for the global economics unit, 4.5: Exchange rates. Typically each lesson plan... more

Inflation free9 January 2021

This lesson compares two different types of inflation and examines the tools available to a government, to help reduce inflationary pressures in the economy. There is also a short activity which considers... more

The role of spending and taxation on inequality 23 September 2021

This lesson continues to focus on the level of income inequality within a country, focusing on the role that progressive taxes play in reducing the level of inequality in the economy. This is a good... more

Demand, utility, PED and the price mechanism (HL)20 October 2021

This case study focuses on demand theory, utility, PED and resource allocation through the price mechanism. The paper can be completed as a homework or classwork exercise and should take around 105 minutes.... more

Floating exchange rates5 July 2021

This lesson introduces exchange rates, which can be described as the price of one currency relative to another. Your students also need an understanding that the exchange rate of a country impacts on... more

Unit 1: Introduction to economicsfree26 October 2021

This is the link page to sub-pages, containing lesson plans and learning activities for the first unit of the IB economics course. Under the new syllabus there is now a specific section entitled 'introduction... more

Mark scheme Q1 microeconomics13 April 2021

This exam style question was written by me for the new syllabus, taking into consideration the guidance received during the recent economics upskilling workshop. Section B questions now require candidates... more

Fiscal policy 2 May 2021

This page considers the way that governments collect tax revenue as well as how they spend that revenue on a range current expenditures, capital expenditures and transfer payments.How do changes to government... more

Unit 4.2/4.3 Trade protectionism6 October 2021

Whilst most economists see a very strong case for free trade between countries, most countries use trade barriers to restrict free trade. The following types of trade barriers are covered in this chapter:... more