Year 10 IB Diploma Preparation Course Guide 2023

ECONOMICS

Year 10 IB Diploma Preparation Course

SUBJECT OUTLINE The IB Diploma Economics Preparation Course 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 . 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. The economics 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). In all areas of economic activity, the economic agents can be divided up into the private sector (consumers and producers) and the public sector (governments). To different extents and with different outcomes, the public sector in any economy assumes some responsibility for monitoring and regulating the behaviour of the private sector. This government intervention is a significant concept that appears throughout the course and students are expected to critically evaluate the balance between the market forces of the private sector and intervention by governments. PATHWAYS The IB Diploma Economics Preparation Course prepares students to study Year 11 and 12 International Baccalaureate Diploma Economics in Years 11 and 12. Studying Economics prepares students for Economics, Business, Accounting, Commerce, Finance, Tourism and Law at university.

WHY STUDY THIS SUBJECT Economics is the science of resource allocation. Resource allocation is a skill used by all people, businesses and governments in their everyday activities. For example, a business needs to decide if they should allocate their $80000 cash at bank resource to hire a new staff member or spend the $80000 on advertising to increase sales. Economics provides people, businesses and governments with the framework and systems to help make the best decisions in these everyday situations. Economics is suitable to students who would like to gain a broad understanding of their role as citizens, as consumers, as workers, wealth builders and as creative participants in the community. The course is divided into a series of units which offer preparatory studies towards Year 11 and 12 IB Diploma Economics with an emphasis on current issues, local, national and global issues.

IB DIPLOMA AIMS FOR ECONOMICS

The aims of the Year 10 Economics IB Diploma Preparation Course are to encourage and enable students to:

• develop a critical understanding of a range of economic theories, models, ideas and tools in the areas of microeconomics, macroeconomics and the global economy • apply economic theories, models, ideas and tools and analyse economic data to understand and engage with real-world economic issues and problems facing individuals and societies develop a conceptual understanding of individuals’ and societies’ economic choices, interactions, challenges and consequences of economic decision-making. •

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