IB DP Economics: Microeconomics

Explain the difference between a movement along the demand curve and a shift of the demand curve.

Explain two non-price determinants that may affect the demand for rice.

Explain two non-price determinants that may affect the supply of rice.

Explain how a decrease in the price of bus travel might affect the price and output of its substitutes and complements.

With reference to the signalling and incentive functions of the price mechanism, explain how the economic question ‘what to produce’ is answered.

With reference to the concept of excess demand, explain how a decrease in the supply of a good would lead to a new market equilibrium.

Using real-world examples, discuss the view that allocative efficiency is always achieved in competitive markets.

Explain, with reference to the assumptions underlying the law of demand, why the demand curve is downward sloping.

Explain, with reference to the assumptions underlying the law of supply, why the supply curve is upward sloping.

Explain two factors affecting the price elasticity of demand for a good.

Explain how government intervention can be used to support firms and promote equity.

Explain why governments may want to subsidise solar panels.

Using real-world examples, discuss the view that governments should never provide subsidies to firms.

Using real-world examples, discuss the impacts of a price ceiling on different stakeholders.

Using real-world examples, discuss the impact of a price floor on different stakeholders.

Explain why community surplus is maximised when marginal social benefit equals marginal social cost.

Explain why merit goods are underprovided and underconsumed.

Explain why the consumption of demerit goods leads to market failure.

Explain how pollution-emitting firms create market failure in the economy.

Explain why common pool resources are often overexploited by society.

Explain how tradable permits and collective self-governance may address the overexploitation of common access resources.

Using real-world examples, discuss the view that carbon taxes are the most effective method of addressing the use of fossil fuels.

Using real-world examples, discuss the view that an indirect tax on petrol is the best way to reduce market failure caused by cars.

Using real-world examples, discuss whether legislation and regulation are the best ways to resolve negative consumption externalities caused by demerit goods.

Using real-world examples, evaluate the different approaches to managing common access resources.

Explain why public goods are underprovided by the market, leading to market failure.

Using real-world examples, discuss the view that public goods should always be provided by the government.

Explain the concepts of adverse selection and moral hazard.

Using real-world examples, discuss the view that government responses are the best approach to resolving market failure caused by asymmetric information.

Using real-world examples, discuss the advantages and disadvantages of a firm operating in perfect competition.

Explain the characteristics of firms in monopolistic competition.

Explain why allocative efficiency is not achieved in monopolistic competition.

Explain why firms in monopolistic competition can earn abnormal profits in the short run but not in the long run.

Using real-world examples, examine the view that a monopoly is always harmful to society.

Using real-world examples, discuss how governments restrict monopoly power.

Using real-world examples, discuss the view that barriers to entry in a monopoly will always lead to abnormal profits in the long run.

Using real-world examples, discuss the view that oligopolies should collude rather than compete.

Using real-world examples, discuss the advantages and disadvantages of oligopolistic firms.

Using real-world examples, discuss possible strategies to address a high concentration ratio in a market.

Using real-world examples, discuss the view that it is never desirable for large firms to have significant market power.

Using real-world examples, discuss the view that governments should always try to prevent the creation of barriers to entry.