Economics

Course summary

Economics is a social science concerned with the challenges common to all societies, in searching for acceptable levels of economic well-being. The quest is of particular relevance not only because of the vast gulf separating the poorest and the richest inhabitants of the planet but also because of the limits of resources, time and human effort. Although the subject can be studied at two different levels, both higher and standard-level courses aim to encourage students to think critically about economics and the real-world issues they will face. Students will gain knowledge of economic principles, and develop analytical and critical thinking skills. They will also learn to appreciate the difference between positive and normative statements in decision-making. The core syllabus for both levels involves the study of individual markets; why markets fail to be efficient; business decision-making; macroeconomic issues and policy e.g. unemployment, inflation, GDP growth and the balance of payments. Both levels focus on the roles of interest rate and tax policy, and the importance of international economics. There is in addition a special consideration of the economics of development. In the new syllabus, there is extra depth and breadth required in certain areas at the Higher Level. Both SL and HL students develop quantitative skills, but HL students will need to further develop these as appropriate, in analysing and evaluating economic relationships to provide informed policy advice. These skills are specifically assessed in HL Paper 3.