IB Economics Power Review Pack
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Get ready to peel back the layers of economics and boost your exam score! Our comprehensive test prep course is designed to give you the skills and confidence you need to succeed.
In the International Baccalaureate (IB) Diploma Programme (DP), the economics course provides students with a solid foundation in economic theory and the tools to apply this theory to real-world situations. The course is assessed through a combination of internal and external assessments, both attributed to the overall grade. The assessments for economics are designed to test students’ knowledge and understanding of economic concepts and theories, as well as their ability to apply this knowledge to real-world situations and analyze data.
This course aims to develop students’ comprehensive knowledge and external assessment skills to reach their academic goals.
Predicted Exam Topics 2025
IB Economics 2025 Exam Predictions
Based on previous exam trends and syllabus weightings, the following predictions outline potential topics for each IB Economics 2025 exam paper. While these are not guaranteed, they can serve as a strategic guide for revision.
Paper 1 Predictions (Essay Response – Micro, Macro, Global Economy)
Paper 1 typically includes one microeconomics, one macroeconomics, and one global economy question in each section.
Microeconomics:
📌 Theory of the Firm Focus – Expect a question requiring analysis of market structures (perfect competition, monopoly, monopolistic competition, or oligopoly). A possible evaluation of efficiency, pricing strategies, or contestability in different market structures could be included.
Macroeconomics:
📌 Demand-Side Policies – Fiscal and monetary policy effectiveness in addressing recessionary or inflationary gaps is likely. The evaluation may compare short-term vs. long-term effects and discuss potential limitations such as crowding out, time lags, or impacts on debt levels.
Global Economy:
📌 Trade Liberalization & Development – The impact of free trade agreements, tariff removals, and economic integration on developing economies could be examined. Students may need to evaluate the extent to which trade liberalization promotes or hinders economic growth and development in less developed countries.
Paper 2 Predictions (Data Response – Macro & Global Economy Focus)
Paper 2 tends to feature macro and global economy questions, often linked to real-world data and requiring applied evaluation.
📌 Macroeconomics & Global Economy Topics:
- Strong focus on macroeconomic indicators (growth, employment, inflation) and economic policies
- Evaluation focus: A question requiring a discussion of the effectiveness of demand-side vs. supply-side policies is highly probable
- Development Economics angle: Possible question analyzing barriers to economic development or the impact of a specific policy on income inequality, poverty reduction, or long-term growth prospects
Paper 3 Predictions (Quantitative Paper – Macroeconomics Focus)
Paper 3 often emphasizes macroeconomic calculations and policy applications.
📌 Central Topics:
- Unemployment calculations and evaluation (types of unemployment, natural rate, Phillips curve)
- Inflation calculations and explanations (CPI, real vs. nominal values, inflation targeting)
- Policy recommendations: Likely to be macro-focused, with demand-side or supply-side policy suggestions linked to reducing unemployment and inflation
- Global economy link: May include an evaluation of policy choices in an open economy, such as the role of foreign aid, microfinance, or market-based vs. interventionist approaches to development
Final Notes for Preparation
While these predictions are based on past paper trends, students should ensure they are fully prepared for all syllabus topics. The IB Economics exam often includes unexpected questions and requires strong evaluation skills to score well.
Suggested Focus Areas:
✔ Master diagram explanations (AD/AS, Phillips Curve, trade models, development strategies)
✔ Practice evaluating policies (fiscal, monetary, supply-side, and development policies)
✔ Be ready to apply real-world economic examples
✔ Time management: Paper 1 essays should be structured, Paper 2 requires data interpretation, and Paper 3 should be efficient with calculations
By focusing on these key areas, students will be well-prepared to handle any 2025 IB Economics exam scenario with confidence.
Types of Assessments in IB Econ
The IB DP Economics program is assessed through a combination of internal and external assessments. External assessments are administered and marked by the International Baccalaureate Organization, and are designed to assess students’ understanding of key concepts and their ability to apply economic principles to real-world situations. There are three external assessments in the IB DP Economics program: Paper 1, Paper 2, and Paper 3.
Paper 1 is a free-response question designed to test your knowledge of economic concepts and evaluate an economic decision or intervention. Participants will select one question from three choices, typically one for microeconomics, macroeconomics, and the global economy. These questions provide you with no information to work from but require that you provide all diagrams, knowledge, and examples on your own.
Paper 2 is a data-response examination that tests students’ understanding of all three main economic areas of study. Participants will select one of two questions in this assessment. Each question will provide information in the form of an article, diagram, table, or chart. Following the article, a series of short-answer questions will be asked, concluding with one final evaluation question worth significant marks.
Paper 3 is a ‘Policy Paper’ and is HL only. Participants will be required to answer two compulsory questions with no choice. Similar to paper 2, this assessment will provide you with information in the form of text, diagrams, tables, or charts. Participants will be asked several short answer questions concluding with one weighty question where students must recommend a policy to implement to correct the current economic situation or problem.
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Paper 1 Overview
Writing Paper 1 in IB Economics
Format on exam day:
- 1 hour 15 minutes
- 3 Question Choices
- Each question is comprised of two parts
- Part A (10 marks) = This part will ask you to explain or discuss an economic concept using a diagram.
- Part B (15 marks) = This part will ask you to evaluate an intervention or action.
- Format in your class
- Most likely, your teacher will need to alter your examinations so that it can be done with limited knowledge of the course and to accommodate time constraints. They will most likely alter the exam so that you will only take one part during an exam, either a or b.
Part A
In order to get full marks on part a, a response typically needs to a relevant and accurate diagram, proper use of economic terminology, and proper explanation of the diagram. To be successful at part a, we recommend that you follow the strategy of DEED.
Part B
To get full marks on part b, a response will need a real-world example, a full explanation of economic theory, appropriate use of economic terminology, a relevant diagram if applicable, and most importantly, a full and balanced evaluation.
How to Evaluate?
Learning the evaluation skill will be key in your IB Economics journey as you can use this SAME strategy for Paper 1 part b, Paper 2 part g, and on all of your IA commentaries. We recommend using the strategy “+ – STOP.”
Suggested Structure
Sample Question and Responses.
Sample Response to Part A
The PPC or production possibilities curve is a curve showing the maximum combination of goods and services that an economy or firm can produce in a given time period if all resources are efficiently used, and the state of technology remains fixed. Scarcity is the central concept in economics, which entails the idea that humans have unlimited desires and limited resources to meet those desires. Due to scarcity, consumers, producers, government, and society must make choices as they cannot meet all of their desires. However, not all choices are created equal, which leads to the concept of opportunity cost which is defined as the next best alternative when making a decision.
For this question, let’s assume the country of Somalia is debating between producing more consumer or capital goods.
Figure 1: PPC for Somalia
Somalia would like to produce 8 consumer goods and 15 capital goods in a perfect world with unlimited resources. However, as the PPC demonstrates, this is impossible due to scarcity. Therefore, they must make choices of how they would like to allocate their resources. Any point on the PPC line is deemed efficient and therefore points A,B,C,D, and E are all equally efficient. If we assume Somalia wants a nice mix of consumer and capital goods, they would most likely select between point C or D. Let’s assume that they select the choice to produce at point C, where they produce 8 capital goods and 4 consumer goods. The opportunity cost of producing at point C is producing at point D and therefore, the opportunity cost is 2 consumer goods.
Paper 1 Real World Example Bank
Browse real world examples for microeconomics, macroeconomics, and global economics, which are all found below. 👇
Micro Real World Example Bank
This table provides a structured overview of various microeconomic concepts with real-world examples, each linked to a specific geographical location and time period. Simply browse the concept and get an example. Enjoy!
| Microeconomic Concept | Specific Example | Description | Location | Year |
|---|---|---|---|---|
| Shift of Demand to the Right | COVID-19 Pandemic and PPE | Global surge in demand for personal protective equipment like masks and hand sanitizers due to the COVID-19 pandemic. | Global | Early 2020 |
| Shift of Demand to the Left | Declining Coal Demand in the US | Steady decline in coal demand in the US due to environmental concerns and the rise of alternative energy sources. | United States | From 2010 |
| Shift of Supply to the Left | 2011 Thailand Floods and Hard Drives | Floods in Thailand severely impacted the global supply of hard disk drives, a key component for computers. | Thailand | 2011 |
| Shift of Supply to the Right | Solar Panel Production in China | China’s significant investment in solar technology led to a substantial increase in the global supply of solar panels. | China | From 2010 |
| Consumer Nudges in Action | UK Pension Auto-Enrollment | The UK government introduced an automatic enrollment scheme for employee pensions, significantly increasing participation. | United Kingdom | 2012 |
| Price Elasticity | Gasoline Demand During 2008 Financial Crisis | Notable shifts in consumer behavior regarding gasoline consumption, reflecting its price elasticity during the 2008 crisis. | Global | 2008 |
| Price Floor | Minimum Wage in Seattle | Seattle implemented a $15 per hour minimum wage, a government-mandated price floor ensuring a living wage for workers. | Seattle, USA | 2021 |
| Price Ceiling | Venezuela’s Price Controls | Venezuela imposed price ceilings on basic goods like food and toiletries in 2014, leading to widespread shortages. | Venezuela | 2014 |
| Indirect Tax | GST in India | India’s implementation of the Goods and Services Tax (GST) in 2017, replacing multiple indirect taxes with a single tax. | India | 2017 |
| Ad Valorem Tax | VAT Increase in the UK | The UK increased its Value Added Tax (VAT) from 17.5% to 20% in 2011. | United Kingdom | 2011 |
| Subsidy | US Corn Industry for Ethanol Production | U.S. government subsidies to the corn industry, particularly for ethanol production, especially increased in the early 2000s. | United States | Early 2000s |
| Regulation/Legislation | Affordable Care Act in the US | The Affordable Care Act (ACA), implemented in 2010 in the United States, significantly restructured the healthcare market. | United States | 2010 |
| Negative Externalities | Deepwater Horizon Oil Spill | The Deepwater Horizon oil spill in 2010 in the Gulf of Mexico, causing significant environmental damage. | Gulf of Mexico | 2010 |
| Positive Externalities | Public Wi-Fi in Taipei | Taipei’s implementation of public Wi-Fi since 2014 enhances public internet access, creating positive externalities. | Taipei, Taiwan | From 2014 |
| Perfect Competition | Canadian Wheat Market | The wheat market in Canada, especially in the 2000s, is an example of perfect competition with many producers. | Canada | 2000s |
| Monopoly | De Beers in the Diamond Industry | De Beers’ historical dominance in the diamond industry until the early 2000s. | Global | Until early 2000s |
| Monopolistic Competition | Coffee Shop Market in London | The coffee shop market in London with various brands like Starbucks, Costa Coffee, and local cafes since the 2010s. | London, UK | 2010s |
| Oligopoly | Boeing and Airbus in Aircraft Market | The dominance of Boeing and Airbus in the commercial aircraft market, particularly evident in the 2010s. | Global | 2010s |
Macro Real World Example Bank
This table provides a structured overview of various macroeconomic concepts with real-world examples, each linked to a specific geographical location and time period. Simply browse the concept and get an example. Enjoy!
| Macroeconomic Concept | Specific Example | Description | Location | Year |
|---|---|---|---|---|
| Growth in GDP | Post-2008 Recovery in the USA | Following the 2008 financial crisis, the US experienced significant GDP growth, mainly due to various stimulus measures and regulatory reforms. | United States | 2009 – Onwards |
| Shifts in AD | COVID-19 Pandemic Global Response | The pandemic led to a decrease in aggregate demand due to lockdowns, travel bans, and reduced consumer spending. | Global | 2020 |
| Shifts in SRAS (Supply Shock) | 1973 Oil Crisis | OPEC’s oil embargo led to a significant supply shock, drastically increasing oil prices and reducing SRAS. | Global | 1973 |
| Shifts in LRAS | Technological Advancements in China | China’s investment in technology and education over the past decades has steadily shifted its LRAS to the right. | China | 2000s – Onwards |
| Increase in Inflation | Hyperinflation in Zimbabwe | Excessive money printing and economic mismanagement led to hyperinflation. | Zimbabwe | 2007 – 2008 |
| Deflation | Japan’s Lost Decade | Prolonged economic stagnation in Japan led to deflation, characterized by falling prices and reduced economic activity. | Japan | 1990s |
| Cost-Push Inflation | 1970s Oil Price Shock | Increased oil prices due to the oil crisis led to cost-push inflation globally. | Global | 1970s |
| Demand-Pull Inflation | US Economic Boom in the 1990s | The tech boom and increased consumer spending in the US led to demand-pull inflation. | United States | 1990s |
| Cyclical Unemployment | Global Financial Crisis of 2008 | The financial crisis led to a significant increase in cyclical unemployment due to decreased economic activity. | Global | 2008 – 2009 |
| Frictional Unemployment | Post-COVID-19 Economic Reopening | As economies reopened post-COVID-19, there was an increase in frictional unemployment due to job transitions. | Global | 2021 |
| Structural Unemployment | Automation in the Manufacturing Industry | Increased automation has led to structural unemployment in traditional manufacturing sectors. | Global | 2010s – Onwards |
| Seasonal Unemployment | Tourism Industry in the Maldives | The tourism industry in the Maldives experiences seasonal unemployment due to the nature of the industry. | Maldives | Annually |
| Increases in Income Inequality | Economic Liberalization in India | Post-1991 economic reforms in India led to rapid growth but also increased income inequality. | India | 1991 – Onwards |
| Increase in Income Tax Percentage | Tax Reforms in France | France implemented significant tax reforms, including increases in income tax rates for high earners. | France | 2012 |
| Role of Taxes to Reduce Poverty | Scandinavian Welfare Model | Scandinavian countries use high tax rates to fund extensive social welfare programs, reducing poverty. | Scandinavia | Ongoing |
| Expansionary Monetary Policy | Post-2008 US Quantitative Easing | The US Federal Reserve implemented quantitative easing to stimulate the economy after the 2008 crisis. | United States | 2008 – Onwards |
| Contractionary Monetary Policy | Brazil’s Interest Rate Hikes | Brazil periodically increased interest rates to control inflation and stabilize the economy. | Brazil | 2010s |
| Expansionary Fiscal Policy | New Deal in the 1930s | The New Deal programs under President Roosevelt aimed to stimulate the US economy during the Great Depression. | United States | 1930s |
| Contractionary Fiscal Policy | Greek Austerity Measures | Greece implemented austerity measures, including spending cuts and tax increases, to address its debt crisis. | Greece | 2010s |
| Market-Based Supply-Side Policies | Tax Cuts in the Reagan Era | The Reagan administration’s tax cuts aimed to stimulate economic growth by increasing private sector activity. | United States | 1980s |
| Interventionist Supply-Side Policies | South Korean Industrial Policy | South Korea’s government actively intervened in the economy, focusing on key industries to spur growth. | South Korea | 1960s – 1980s |
Global Real World Example Bank
This table provides a structured overview of various global concepts with real-world examples, each linked to a specific geographical location and time period. Simply browse the concept and get an example. Enjoy!
| Global Concept | Specific Example | Description | Location | Year |
|---|---|---|---|---|
| Countries Trading with Comparative Advantage | China’s Manufacturing Industry | China specializes in manufacturing due to lower labor costs, exemplifying trade based on comparative advantage. | China | Ongoing |
| Tariffs | US-China Trade War (2018) | The US imposed tariffs on Chinese goods, leading to retaliatory tariffs from China, affecting global trade dynamics. | US-China | 2018 |
| Quotas | EU Agricultural Product Quotas | The European Union’s quotas on agricultural products from non-EU countries to protect local farmers. | European Union | Ongoing |
| Subsidy | US Agricultural Subsidies | US government subsidies to its agricultural sector, particularly soybeans and corn, affecting global trade patterns. | United States | Ongoing |
| Administrative Barriers | Japan’s Food Import Regulations | Japan’s stringent standards for food imports act as non-tariff barriers, affecting international trade. | Japan | Ongoing |
| Preferential Trade Agreement | North American Free Trade Agreement | NAFTA (now USMCA) reduced trade barriers between the US, Canada, and Mexico, enhancing regional trade. | North America | 1994 |
| Free Trade Area | ASEAN Free Trade Area | The ASEAN Free Trade Area aims to reduce intra-regional trade barriers among Southeast Asian countries. | Southeast Asia | Ongoing |
| Customs Union | European Union | The EU acts as a customs union with a common external tariff for member states. | European Union | Ongoing |
| Common Market | European Single Market | The European Single Market allows the free movement of goods, services, capital, and labor within the EU. | European Union | Ongoing |
| World Trade Organization Intervention | WTO Rulings on Airbus and Boeing | WTO’s dispute settlement cases, including rulings on unfair trade practices in the Airbus and Boeing cases. | Global | Various Years |
| Floating Exchange Rates (Appreciation) | Euro Appreciation | The Euro’s appreciation over time due to various economic factors, including trade balances and interest rate differentials. | Eurozone | Various Years |
| Floating Exchange Rates (Depreciation) | Turkish Lira Depreciation | The Turkish Lira’s depreciation due to political instability and economic concerns, impacting trade and investment. | Turkey | Various Years |
| Fixed Exchange Rates (Revaluation) | Chinese Yuan Peg to the US Dollar | China’s historical pegging of the yuan to the US dollar, with periodic revaluations affecting global trade. | China | Pre-2000s |
| Fixed Exchange Rates (Devaluation) | Venezuelan Bolivar Devaluation | The devaluation of Venezuela’s currency amid economic crises, leading to significant impacts on imports and inflation. | Venezuela | Various Years |
| Managed Exchange Rate | Singapore’s Exchange Rate Policy | Singapore’s managed exchange rate system, using a trade-weighted basket of currencies to stabilize its currency. | Singapore | Ongoing |
| Low Access to Human Capital (Healthcare) | Sub-Saharan Africa’s Healthcare Challenges | Limited access to healthcare in many Sub-Saharan African countries, affecting human capital development and economic growth. | Sub-Saharan Africa | Ongoing |
| Low Access to Human Capital (Education) | Education Challenges in South Asia | South Asian countries facing challenges in providing widespread access to quality education, impacting economic development. | South Asia | Ongoing |
| Dependence on Primary Sector | African Economies’ Reliance on Raw Materials | Many African economies’ dependence on exporting raw materials like oil and minerals, making them vulnerable to global price fluctuations. | Africa | Ongoing |
| Lack of Access to Infrastructure | Developing Nations’ Infrastructure Gaps | Inadequate infrastructure in many developing countries hampers economic growth and development. | Various Developing Countries | Ongoing |
| Lack of Governance Restricting Economic Development | Venezuelan Economic Crisis | Venezuela’s economic crisis, exacerbated by governance issues, leading to hyperinflation and a collapse in public services. | Venezuela | 2010s |
| Import Substitution | India’s Pre-1991 Economic Policies | India’s focus on import substitution to promote domestic industries before its economic liberalization in the 1990s. | India | Pre-1991 |
| Export Promotion | South Korea’s Economic Growth | South Korea’s rapid growth driven by export-oriented policies, especially in technology and manufacturing sectors. | South Korea | 1960s – Onwards |
| Trade Diversification | United Arab Emirates’ Economy | UAE’s efforts to diversify its economy beyond oil, focusing on sectors like tourism, finance, and construction. | United Arab Emirates | 2000s – Onwards |
| Trade Liberalisation | China’s Economic Reforms | Post-1980s economic reforms in China, leading to an open economy and significant growth through trade liberalisation. | China | 1980s – Onwards |
| Deregulation | US Airline Industry Deregulation | The deregulation of the US airline industry in the 1980s, leading to increased competition and lower fares. | United States | 1980s |
| Progressive Tax Redistribution Policies | Scandinavian Welfare Model | High progressive taxation in Scandinavian countries funding extensive social welfare, reducing income inequality. | Scandinavia | Ongoing |
| Government Provision of Education | Finland’s Education System | Finland’s government-funded education system known for high quality and equity, contributing to economic development. | Finland | Ongoing |
| Government Provision of Healthcare | Canada’s Healthcare System | Canada’s publicly funded healthcare system, providing universal coverage and contributing to overall human capital. | Canada | Ongoing |
| Government Provision of Infrastructure | China’s Infrastructure Investment | Massive government investment in infrastructure development, particularly in transportation and cities. | China | 2000s – Onwards |
| Foreign Aid | USAID Programs Worldwide | The United States’ foreign aid through USAID, focusing on development, health, and humanitarian assistance globally. | Global | Ongoing |
| Foreign Direct Investment | China’s Investments in Africa | China’s extensive foreign direct investment in Africa, particularly in infrastructure, mining, and manufacturing sectors. | Africa | 2000s – Onwards |
| Improved Access to Microfinance | Grameen Bank in Bangladesh | Grameen Bank’s role in providing microfinance services in Bangladesh, enhancing financial inclusion and development. | Bangladesh | 1983 – Onwards |
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Unit 1 Definitions
Economic Foundations Terms to Know |
| Actual growth | Occurs when real output (real GDP) increases through time and is a result of greater or better use of existing resources. In the PPC model it can be illustrated by a movement from a point inside a PPC to another point in the northeast direction. | Leakages | Income not spent on domestic goods and services. It includes savings, taxes and import expenditure. |
| Capital | Physical capital refers to means of production that include machines, tools, equipment and factories; the term may also refer to the infrastructure of a country. Human capital refers to the education, training, skills and experience embodied in the labour force of a country. | Mixed economy | An economy that has elements of a planned economy and elements of a free market economy. In reality, all economies are mixed. What is different is the degree of the mix from country to country. |
| Ceteris paribus | A Latin expression meaning “other things being equal”. | Monetarist/new classical counter revolution | An economic school of thought arguing that the price mechanism along with well-functioning competitive markets are sufficient to lead the economy to full employment. In this school of thought, government intervention is not necessary to manage the level of aggregate demand. |
| Economics | Economics is the study of how to make the best possible use of scarce or limited resources to satisfy unlimited human needs and wants. | Normative economics | Deals with areas of the subject that are open to personal opinion and belief, thus not subject to refutation. |
| Economic well-being | A multidimensional concept relating to the level of prosperity and quality of living standards in a country. | Opportunity cost | The next best alternative foregone when an economic decision is made. |
| Entrepreneurship | Refers to the ability of certain individuals to organize the other factors of production (land, labour, capital) and their willingness to take risks. | Planned economy | An economy where the means of production (land and capital) are owned by the state. The state determines what/how much to produce, how to produce, and for whom to produce. |
| Equity | The concept or idea of fairness. | Positive economics | Deals with areas of the subject that are capable of being falsified, or shown to be correct or not. |
| Factors of production | Resources used in the production of goods and services; include land (natural resources), labour, capital and entrepreneurship. | Potential output | Output produced by an economy when it is at full employment equilibrium, or long-run equilibrium according to the monetarist/new classical model. |
| Foreign sector | In an open economy the term refers to exports and imports. | Production possibilities curve (PPC) | A curve showing the maximum combinations of goods or services that can be produced by an economy in a given time period, if all the resources in the economy are being used fully and efficiently and the state of technology is fixed. |
| Free goods | Goods such as air or sea water that are not considered scarce and thus do not have an opportunity cost. | Productive capacity | The greatest capability of an economy to produce, usually measured by maximum possible output of an economy. |
| Free market economy | An economy where the means of production are privately owned and where market forces determine the answers to the fundamental questions (what/how much, how and for whom) that all economies face. | Refutation | A method used in the natural sciences and social sciences where any proposition must be subjected to an empirical test in order to see if it can be disproven or refuted. If it is disproven or refuted, then the proposition must be rejected. |
| Growth in production possibilities | When the production possibilities of a country increase because of more/better resources and/or better technology becoming available; illustrated by a shift outwards of the PPC. | Resource allocation | Apportioning available resources or factors of production to particular uses for production purposes. |
| Households | Groups of individuals in the economy who share the same living accommodation, who pool their income and jointly decide the set of goods and services to consume. | Scarcity | The limited availability of economic resources relative to society’s unlimited needs and wants of goods and services. |
| Human capital | The education, training, skills, experience and good health embodied in the labour force of a country. | Social sciences | Academic studies of human societies and how people in society interact with each other. |
| Income | A flow of earnings from using factors of production to produce goods and services. Wages and salaries are the factor reward to labour and interest is the flow of income for the ownership of capital. | Stakeholder | An individual or group of individuals who have an interest, or stake, in an economic activity or outcome. |
| Injections | Within the circular flow model these refer to spending on domestic output that does not originate from households and thus includes investment spending by firms, government expenditures and exports. | Sustainability | Refers to the preserving the environment so that it can continue to satisfy needs and wants into the future. Relates to the concept of “sustainable development”. |
| Keynesian revolution | An economic school of thought based upon the works of John Maynard Keynes, challenging the classical (laissez faire) viewpoint and advocating an interventionist role for the government in managing the level of aggregate demand and thus of economic activity. | Utility | A measure of the satisfaction derived from consuming a good or service. |
| Labour | One of the four factors of production that refers to the physical and mental contribution of workers to the production process. | Circular flow of income | A simplified illustration that shows the flows of income and expenditures in an economy. |
| Laissez faire | The view that if market forces are left alone unimpeded by government intervention the outcome will be efficient. | Say’s Law | A proposition stating that the supply of goods creates its own demand. |
| Land | One of the four factors of production that refers to the natural resources with which an economy is endowed; also referred to as “gifts of nature”. |
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Oh no! You dont have access but…
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✅ Step-By-Step IA Guide
✅ Ultimate IB Economics Notes
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Oh no! You dont have access but…
Start your journey to a 7 today. Get access to:
✅ Step-By-Step IA Guide
✅ Ultimate IB Economics Notes
✅ Power Review Pack
✅ EconGraph Pro
Oh no! You dont have access but…
Start your journey to a 7 today. Get access to:
✅ Step-By-Step IA Guide
✅ Ultimate IB Economics Notes
✅ Power Review Pack
✅ EconGraph Pro
Oh no! You dont have access but…
Start your journey to a 7 today. Get access to:
✅ Step-By-Step IA Guide
✅ Ultimate IB Economics Notes
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✅ EconGraph Pro
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