Contents Economics overview... 3 Economics Course Outline... 3 Standard and Higher Level... 3 Assessment... 4 Aims and Objectives...

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1 Economics Course Outline Standard and Higher Level

2 Contents Economics overview... 3 Economics Course Outline... 3 Standard and Higher Level... 3 Assessment... 4 Aims and Objectives Links to Theory of Knowledge Extended Essay Approaches to Learning International Mindedness Learner Profile Year Calendar (Year 1 Economics) Year Calendar (Year 2 Economics)

3 Economics overview Economics is a dynamic social science, forming part of the study of individuals and societies. The study of economics is essentially about the concept of scarcity and the problem of resource allocation. Although economics involves the formulation of theory, it is not a purely theoretical subject: economic theories can be applied to real-world examples. As a social science, economics uses scientific methodologies that include quantitative and qualitative elements and relate to many other fields of study. The IB Diploma Programme economics course emphasizes the economic theories of microeconomics, which deal with economic variables affecting individuals, firms and markets, and the economic theories of macroeconomics, which deal with economic variables affecting countries, governments and societies. These economic theories are not to be studied in a vacuum rather, they are to be applied to real-world issues. Prominent among these issues are fluctuations in economic activity, international trade, economic development and environmental sustainability. The ethical dimensions involved in the application of economic theories and policies permeate throughout the economics course as students are required to consider and reflect on human endgoals and values. The economics course encourages students to develop international perspectives, fosters a concern for global issues, and raises students awareness of their own responsibilities at a local, national and international level. The course also seeks to develop values and attitudes that will enable students to achieve a degree of personal commitment in trying to resolve these issues, appreciating our shared responsibility as citizens of an increasingly interdependent world. Economics Course Outline No particular background in terms of specific subjects studied for national or international qualifications is expected or required and no prior knowledge of economics is necessary for students to undertake a course of study based on this specification. However, a familiarity with economic concepts would be an advantage. Standard and Higher Level Syllabus component Teaching hours SL HL Section 1: Microeconomics 1.1 Competitive markets: demand and supply (some topics HL only) 1.2 Elasticity 1.3 Government intervention (some topics HL extension, plus one topic HL only) 1.4 Market failure (some topics HL only) 1.5 Theory of the firm and market structures (HL only) Section 2: Macroeconomics 2.1 The level of overall economic activity (one topic HL extension)

4 2.2 Aggregate demand and aggregate supply (one topic HL only) 2.3 Macroeconomic objectives (some topics HL extension, plus one topic HL only) 2.4 Fiscal policy 2.5 Monetary policy 2.6 Supply-side policies Section 3: International economics 3.1 International trade (one topic HL extension, plus one topic HL only) 3.2 Exchange rates (some topics HL extension) 3.3 The balance of payments (one topic HL extension, plus some topics HL only) 3.4 Economic integration (one topic HL extension) Section 4: Development economics 4.1 Economic development 4.2 Measuring development 4.3 The role of domestic factors 4.4 The role of international trade (one topic HL extension) 4.5 The role of foreign direct investment (FDI) 4.6 The roles of foreign aid and multilateral development assistance 4.7 The role of international debt 4.8 The balance between markets and intervention Internal assessment Portfolio of three commentaries Total teaching hours Assessment Assessment component External assessment (4 hours) Paper 1 (1 hour and 30 minutes) An extended response paper (50 marks) Assessment objectives 1, 2, 3, 4 Section A Syllabus content: section 1 microeconomics Students answer one question from a choice of two. (25 marks) Section B Syllabus content: section 2 macroeconomics Students answer one question from a choice of two. (25 marks) Paper 2 (1 hour and 30 minutes) A data response paper (40 marks) Assessment objectives 1, 2, 3, 4 Section A Syllabus content: section 3 international economics Students answer one question from a choice of two. (20 marks) Section B Syllabus content: section 4 development economics Students answer one question from a choice of two. (20 marks) Use of calculators are not permitted in Weighting 80% 30% 30% 20% 4

5 Paper 1 and paper 2 (SL/HL) Paper 3 (1 hour) HL extension paper (50 marks) Assessment objectives 1, 2 and 4 Syllabus content, including HL extension material: sections 1 to 4 microeconomics, macroeconomics, international economics, development economics Students answer two questions from a choice of three. (25 marks per question) Internal assessment (20 teaching hours) This component is internally assessed by the teacher and externally moderated by the IB at the end of the course. Students produce a portfolio of three commentaries, based on different sections of the syllabus and on published extracts from the news media. Maximum 750 words x 3 (45 marks) 20% Detail of External Assessment Higher Level Paper 1 Duration: 1 hour 30 minutes Weighting: 30% The structure of this paper is the same as SL paper 1. However, the questions that require extended responses may be the same as, or different from, the SL paper 1 questions. Please see the section External assessment details SL, for further details. Paper 2 Duration: 1 hour 30 minutes Weighting: 30% The structure of this paper is the same as SL paper 2. However, these data response questions may be the same as, or different from, the SL paper. The texts/data used may not be the same as at SL. Please see the section External assessment details SL, for further details. Paper 3 Duration: 1 hour Weighting: 20% Students answer two questions in total, from a choice of three questions. The questions are each subdivided into a number of parts. The number of parts will vary. STANDARD LEVEL Assessment component External assessment (3 hours) Paper 1 (1 hour and 30 minutes) An extended response paper (50 marks) Assessment objectives 1, 2, 3, 4 Section A Syllabus content: section 1 microeconomics Students answer one question from a choice of two. (25 marks) Section B Syllabus content: section 2 macroeconomics Students answer one question from a choice of two. (25 marks) Paper 2 (1 hour and 30 minutes) A data response paper (40 marks) Assessment objectives 1, 2, 3, 4 Weighting 80% 40% 40% 5

6 Section A Syllabus content: section 3 international economics Students answer one question from a choice of two. (20 marks) Section B Syllabus content: section 4 development economics Students answer one question from a choice of two. (20 marks) Internal assessment (20 teaching hours) This component is internally assessed by the teacher and externally moderated by the IB at the end of the course. 20% Students produce a portfolio of three commentaries, based on different sections of the syllabus and on published extracts from the news media. Maximum 750 words x 3 (45 marks) Detail of External Assessment Standard Level Paper 1 Duration: 1 hour 30 minutes Weighting: 40% The structure of this paper is the same as HL paper 1 but the questions that require extended responses may be the same as, or different from, the HL paper 1 questions. Students answer two questions in total, one from section A and one from section B. In each section, students are required to answer one question from a choice of two. The questions are each subdivided into two parts, (a) and (b). Section A The principal focus is on section 1 of the syllabus microeconomics. While the principal focus of the questions is on section 1, it is likely that students will be required to draw on other sections of the syllabus. The command terms used in each question, or part thereof, indicate the depth required. Part (a) of each question requires knowledge and understanding, application and analysis and the selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 10 marks. Part (b) of each question requires knowledge and understanding, application and analysis, synthesis and evaluation, and the selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 15 marks. The section A question is worth a total of 25 marks. Section B The principal focus is on section 2 of the syllabus macroeconomics. While the principal focus of the questions is on section 2, it is likely that students will be required to draw on other sections of the syllabus. The command terms used in each question, or part thereof, indicate the depth required. Part (a) of each question requires knowledge and understanding, application and analysis, and the selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 10 marks. Part (b) of each question requires knowledge and understanding, application and analysis, synthesis and evaluation, and the selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 15 marks. The section B question is worth a total of 25 marks. 6

7 Responses are assessed with an analytic markscheme specific to the question paper, which indicates the required responses, any particular breakdown of marks and the markbands used to allocate marks. Overall, the maximum for paper 1 is 50 marks. Paper 2 Duration: 1 hour 30 minutes Weighting: 40% The structure of this paper is the same as HL paper 2. However, these data response questions may be the same as, or different from, those used for the HL paper. The text/data used may not be the same at SL and at HL. Students answer two questions in total, one from section A and one from section B. In each section, students are required to answer one question from a choice of two. The questions are each subdivided into four parts, (a), (b), (c) and (d). Section A The principal focus is on section 3 of the syllabus international economics. While the principal focus of the questions is on section 3, it is likely that students will be required to draw on other sections of the syllabus. The command terms used in each question, or part thereof, indicate the depth required. Part (a) of each question requires knowledge and understanding. It is subdivided into (i) and (ii). The maximum for each of these is 2 marks, with a combined maximum of 4 marks. Part (b) of each question requires knowledge and understanding, application and analysis, and selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 4 marks. Part (c) of each question requires knowledge and understanding, application and analysis, and selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 4 marks. Part (d) of each question requires knowledge and understanding, application and analysis, and synthesis and evaluation. The maximum for this part is 8 marks. The section A question is worth a total of 20 marks. Section B The principal focus is on section 4 of the syllabus development economics. While the principal focus of the questions is on section 4, it is likely that students will be required to draw on other sections of the syllabus. The command terms used in each question, or part thereof, indicate the depth required. Part (a) of each question requires knowledge and understanding. It is subdivided into (i) and (ii). The maximum for each of these is 2 marks, with a combined maximum of 4 marks. Part (b) of each question requires knowledge and understanding, application and analysis, and selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 4 marks. Part (c) of each question requires knowledge and understanding, application and analysis, and selection, use and application of a variety of appropriate skills and techniques. The maximum for this part is 4 marks. Part (d) of each question requires knowledge and understanding, application and analysis, and synthesis and evaluation. The maximum for this part is 8 marks. The section B question is worth a total of 20 marks. Responses are assessed with an analytic markscheme specific to the question paper, which indicates the required responses, any particular breakdown of marks and the markbands used to allocate marks. Overall, the maximum for paper 2 is 40 marks. 7

8 Internal assessment details SL and HL Portfolio Duration: 20 hours Weighting: 20% Rationale Internal assessment in economics enables students to demonstrate the application of their knowledge and understanding of economic theory to real-world situations. Requirements Both SL and HL economics students produce a portfolio of three commentaries based on articles from published news media. Each article must be based on a different section of the syllabus (microeconomics, macroeconomics, international economics and development economics). Final submission of portfolio (two copies) is in Students are expected to hand-in their internal assessments at 8.40 am on the due date. Students who hand in their assessments after the due date, without any prior notice or reasonable explanation (see below), will be at risk of not gaining the diploma. The following documentations are accepted as part of reasonable explanation: Medical Certificate issued on the due date of assessment Other documents that are outlined in School Policy(s). The following documentations are accepted as part of prior notice : Official Form signed by subject teacher and the Head of Department for official school activity ONE week prior to the internal assessment. Any other document/s that are outlined in School Policy(s). If students are unable to hand in the internal assessments due to self interest leave (such as holiday leave), then they must hand in their internal assessment prior to their departure otherwise they will fail the subject. There is no re-assessment opportunity for the Internal Assessment. Assessment Setter/s must fill in the Internal Assessment cover sheet and any other required documentation/s once internal assessments are marked, and moderated by moderator/s. The school is required to keep your internal assessment projects. This is for auditing of the results, should that be deemed necessary. You are advised to keep a hard copy yourself. School policies apply regarding disputes of any internal assessment results. The school s IB Examination Policies and Procedures, overseen by Mrs Buist, will apply to all Economics assessment situations. Articles The articles may be from a newspaper, a journal or the internet, but must not be from television or radio broadcasts. If a student includes a relatively lengthy article, which is very much discouraged, the student must highlight the section(s) of the article upon which the commentary is based. The article on which the commentary is based should, where possible, be in the same language as the commentary. If an extract in another language is used, the student must provide an accurate translation of the whole article. Students must also include the original article in their portfolio. Individual work Students must select their own articles to discuss. It may happen that more than one student bases his or her commentary on the same article, but the article must not be given to the class by the teacher, and the production of the commentary must be each student s individual work. A commentary must not be prepared collaboratively. Focus Each commentary must: 8

9 explain the linkages between the article and economic theory taken from the section of the syllabus on which the article is based demonstrate economic insights into the implications of the article (that is, it should provide evidence of the student s ability to discuss current events from the point of view of an economist). On each commentary students must record: the title of the article the source of the article (including date of access to the site if from the internet) the date the article was published the date the commentary was written the word count of the commentary the section of the syllabus to which the article relates. Each commentary in the portfolio is assessed individually against the internal assessment criteria. The teacher will initially assess each student s work. Please note that internal standardization must take place when more than one teacher is assessing. A sample of the work will then be moderated by the IB moderator. Rubric requirements If students do not adhere to the following requirements, they can lose marks under criterion F: Rubric requirements. 1. Word limit Students must produce a portfolio of three commentaries. Each commentary must not exceed 750 words. Note: Moderators will not read beyond 750 words for each commentary. The following are not included in the word count. Acknowledgments Contents page Diagrams Labels of five words or fewer Headings on diagrams of 10 words or fewer Tables of statistical data Equations, formulae and calculations Citations (which, if used, must be in the body of the commentary) References (which, if used, must be in the footnotes/endnotes) Please note that footnotes/endnotes may be used for references only. Definitions of economic terms and quotations, if used, must be in the body of the work and are included in the word count. Please note that a citation is a shorthand method of making a reference in the body of the commentary, which is then linked to the full reference in the footnotes/endnotes. 2. Articles Each article must be based on a different section of the syllabus. 3. Sources Students must use a different source for each commentary. 4. Contemporary articles Students need to look for articles relating to current events and these must be published no earlier than one year before the writing of the commentary. 5. Contents Each portfolio must contain: a summary portfolio coversheet a commentary coversheet for each commentary three commentaries, accompanied in each case by the relevant article. 9

10 Overview There are five internal assessment criteria for each commentary. Criterion A Diagrams 3 marks Criterion B Terminology 2 marks Criterion C Application 2 marks Criterion D Analysis 3 marks Criterion E Evaluation 4 marks Total 14 marks There is one internal assessment criterion for the whole portfolio. Criterion f Rubric requirements 3 marks Each commentary is assessed individually for the first five assessment criteria (criteria A E) and then criterion F is applied to the whole portfolio. The maximum for the portfolio is 45 marks: (14 marks x 3 commentaries) + 3 marks = marks. The assessment criteria are related to the assessment objectives. Criterion A: AO2 and AO4 Criterion B: AO1 Criterion C: AO2 Criterion D: AO2 Criterion E: AO3 Criterion F: AO4 Time allocation It is recommended that approximately 20 hours of class time is allocated for the portfolio at both higher level and standard level. This should include: time for the teacher to explain to candidates the requirements for the portfolio class time for candidates to work on their commentaries time for discussion between the teacher and the candidate time for the teacher to review progress and to check authenticity. Assessment of the portfolio At the end of the course, the portfolio as a whole must be assessed against the internal assessment criteria. Aims and Objectives The aims of the economics course at higher level and standard level are to: provide students with a core knowledge of economics encourage students to think critically about economics promote an awareness and understanding of internationalism in economics encourage students' development as independent learners enable students to distinguish between positive and normative economics enable students to recognize their own tendencies for bias. The overall aim of the course is to give students a deeper understanding of the nature and scope of economics. The different parts of the course are designed to complement each other enabling students to develop a range of fundamental economic skills. The objectives of the economics course: Having followed the Diploma Programme course in economics, candidates will be expected to: 1. have an understanding and knowledge of economic concepts and theories 2. apply economic theory to a range of circumstances and a variety of situations 10

11 3. analyse information through the use of economic concepts and theories 4. evaluate concepts and theories from different economic perspectives Links to Theory of Knowledge Internationalism in the economics course Although complete knowledge is impossible, students can search for understanding through a wide range of different aspects of the global economy. Nature of the subject Economics is a dynamic social science, forming part of the study of individuals and societies. The study of economics is essentially about the concept of scarcity and the problem of resource allocation. Although economics involves the formulation of theory, it is not a purely theoretical subject: economic theories can be applied to real-world examples. Neither is economics a discrete subject, since economics incorporates elements of history, geography, psychology, sociology, political studies and many other related fields of study. Economics does not exist in a vacuum, because it naturally must consider how economic theory is to be applied in an international context. The scientific approach characterizes the standard methodology of economics. This methodology can be summarized as a progression from problem identification, through hypothesis formulation and testing, arriving finally at a conclusion. Alongside the empirical observations of positive economics, students of the subject are asked to formulate normative questions. Encouraging students to explore such questions forms the central focus of the economics course. Extended Essay The extended essay is an independent, self-directed piece of research, culminating in a 4,000- word paper. As a required component, it provides: practical preparation for the kinds of undergraduate research required at tertiary level an opportunity for students to engage in an in-depth study of a topic of interest within a chosen subject. Emphasis is placed on the research process: formulating an appropriate research question of an economic issue engaging in a personal exploration of the topic based on sound economic theories communicating ideas developing an argument. Participation in this process develops the capacity to: analyse synthesize, and evaluate knowledge. Students are supported throughout the process with advice and guidance from a supervisor (a teacher at the school). 11

12 Approaches to Learning In an Economics classroom one can expect to see the following taking place: Communication and Social Skills: During the course, students will have opportunities to articulate their ideas and develop communication and social skills. They will work in teams to discuss pertinent economic concepts and issues, to participate in class discussions and debates, to carry out research work and to present their ideas in class and hone their presentation techniques. Thinking: in the microeconomic and macroeconomic topics, students will have to apply critical thinking skills to develop a deeper understanding of how economic theories apply and how economic models are applied in the real world. In the international and development economics topics, students will learn how to apply key economic concepts to real-world scenarios and gain an appreciation of the global economic issues. The internal assessment portfolio provides opportunities for students to learn questioning, analysing and critical thinking skills. Self-Management: Through this course students will learn to self manage as the programme is over two years. The students will have to manage their time in meeting deadlines for written work, assignments, prepares for presentations, tests and examinations. They also need to keep up-todate with content and notes as well as seeking assistance when unsure. Research Skills Students will learn and acquire research and presentation skills across the four topics of economics. Discussions and essay around the impact of economic interactions between nations and the development issues facing nations will entail research and investigative work. Students also have to find relevant and recent articles to present to the class with accurate information. International Mindedness Internationalism can be defined as the ideal or practice of cooperation and understanding among countries. Economics has an important role to play in promoting such international cooperation and mutual understanding because of its focus on global issues. Students are taught to understand the impact of economics can both improve cooperation and understanding between countries and, unfortunately, cause extensive damage. Trade agreements, trading bloc, international aids and development projects are some of the key topics in this course where students learn about real international issues especially in trade, development and sustainability. If all participants in the global economy are to achieve a better quality of life for their populations, there must be economic cooperation between all countries. This does not mean that developed countries must control the destinies of less-developed countries. Instead, it means sharing concepts across cultures, against a background of economic awareness. To achieve this understanding, students will be taught to consider economic theories, ideas and happenings from the points of view of different individuals, nations and cultures in the world economy. Although complete knowledge is impossible, students can search for understanding through a wide range of different aspects of the global economy. Students are given individual research and write a case study of a developing country or countries Their search may inspire a lifelong interest in the promotion of international understanding. 12

13 Learner Profile IB Programmes aim to develop internationally minded people who display a range of personal qualities. Economics students develop and demonstrate the Learner Profile in the following ways: Inquirers - Students develop their natural curiosity. They acquire the skills necessary to conduct inquiry and research and show independence in learning in selecting and researching their own topic for the Extended Essay. Students actively enjoy learning and this love of learning is supported in class discussions, debates and projects. Knowledgeable Students explore concepts, ideas and issues that have local and global significance and given news duty to broadcast to the class each week. In so doing, they acquire in-depth knowledge and develop understanding across a broad and balanced range of disciplines. Thinkers Students exercise initiative in applying thinking skills critically and creatively to recognize and approach complex problems, and make reasoned, ethical decisions especially in building their IA Portfolio. Communicators Students understand and express ideas and information confidently and creatively in more than one language and in a variety of modes of communication such as power point presentation, class debate and oral presentation. They work effectively and willingly in collaboration with others. Principled - Students act with integrity and honesty, with a strong sense of fairness, justice and respect for the dignity of the individual, groups and communities. Students will practice academic honesty by citing research sources and acknowledge the work of others. They take responsibility for their own actions and the consequences that accompany them. Open-minded Students will respond appreciatively and respectfully when they are a part of a working group respect the dignity and equality of those around them irrespective of cultures and belief systems. Students are open to ideas of others and willing to go beyond their own realm of experience and enter into unfamiliar ground to explore new ideas, new roles and new cultures without prejudice. Caring Students show empathy, compassion and respect towards the needs and feelings of others. They have a personal commitment to service which focus on giving and service to others in completing their CAS programme. Risk-takers - Students approach unfamiliar situations and uncertainty with courage and forethought, and have the independence of spirit to explore new roles, ideas and strategies. They are brave and articulate in defending their beliefs. Students are keen to try new ideas or explore the unfamiliar to challenge themselves. Balanced Students understand the importance of intellectual, physical and emotional balance to achieve personal well-being for themselves and others. Students of economics understand how to empathise and see things from alternative viewpoints and developed a balanced approach to problem solving. Reflective Students give thoughtful consideration to their own learning and experience. They are able to assess and understand their strengths and limitations in order to support their learning and personal development and to ask questions to help them move forward in their development. 13

14 Year Calendar (Year 1 Economics) Term 1 Week 0 Course Confirmation (Wed) Feb Feb Waitangi Day Full timetable Intro social sciences - scarcity, choice, opportunity cost Feb Economic models - PPF, trade cycle, circular flow, demand and supply Feb Athletics day 21 Tues Demand and supply with linear functions Mar EOTC week Mar Section One : MICRO ECONOMICS general graph consumer and producer surplus. DWL. AE Mar Mentor Day- goal setting day Fri Government intervention tax, subsidies Mar Government intervention price controls Apr Summer Tournament Week Government intervention price controls Apr Elasticity Apr Good Friday Elasticity Term May May Market failure May Market failure May Section 2 : MACROECONOMICS - Measuring national income Jun Measuring economic development Jun Queen s Bday AD & AS Jun AD, AS Jun Multiplier equation Jul Inflation - monetary policy Jul Reports issued last day term Inflation fiscal policy / Fiscal budget Term Aug Inflation supply side polices Aug TOD (29 th Monday) HL only Market structure cost, revenue, profit Aug MC = MR analysis / profits maximisation HL only Aug Perfect competition vs Monopoly HL only Sep Monopoly HL only Price discrimination Sep Monopolistic competition HL only Sep REVISION : School Examinations Sep Exams Oct Oligopoly HL only Oct Growth PPF, fiscal policy Oct Labour day Oct 24 Growth Nov Unemployment Nov Unemployment draft point 1 Portfolio Nov Distribution of income / equity Nov Distribution of income- fiscal policy tax system Dec INTERNAL Dec Check point One-internal Internal due 9 Term 4 ends 14

15 Year Calendar (Year 2 Economics) Term 1 Dates TBC Week 0 Revisit Handbook/ course requirement Week Feb Section 3 International economics Comparative, absolute Free trade protectionism Anniversary Day Week Feb Free trade protectionism WTO free trade agreement, trading block Week Feb Exchange rate Draft 2 IA due Week Feb Exchange rate Athletics day 21 Tues Week Mar EOTC Week Mar Balance of Payment Week Mar Balance of Payment Year 9-13 Goal setting interviews Yr 7/8 special programme Week Mar Economic integration Internal Checkpoint 2 Week Apr Terms of trade Summer Tournament Week Week Apr Section 4 : Development Economics Economic development Week Apr Development vs growth Term 2 Term 2 Week 1 1-7May Domestic factors Week May Domestic factors Draft IA 2 due Week May INTERNAL Week May International trade Week Jun Foreign direct investment Final hand in portfolio Week Jun Foreign aid Queen s Bday Week Jun International debt Week Jun Balance between markets and intervention Week Jul Balance Week Jul Term 2 ends Reports issued Term 3 Week Aug Section One HL topics only Week Aug Section One revision Week Aug Section Two HL topics only Week Aug Section Two revision Week Sep Section Three - revision Week Sep Section Four revision Week Sep Revision Week Sep EXAMS Week Oct Feedback Term 3 ends Labour day Oct 24 Term 4 Week Oct Revision Week Oct Revision Week, Nov IB EXAMS Week4 6-12Nov 15

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