Economics Economics is in group 3 of the IB diploma, subjects concerned with individuals and societies. As a dynamic social science, Economics deals with the concept of scarcity and the allocation of resources. Using theory as the framework for analysis and evaluation of economic issues and events, the course is a blend of theory and application and acknowledges the interrelationships with other areas of study such as history, geography, psychology, sociology, political studies and so on. The course enables students to embrace the standard methodology of Economics. This involves a progression from problem identification, through to hypothesis formulation and testing, arriving finally at a conclusion. By distinguishing between positive (= True/False) statements and normative (=Right/Wrong) issues, students of Economics should develop a logical and sophisticated approach to understanding and commenting on central questions.