Economics HL Skill Progression Mastery Tracker

Easy — Foundations

• 1Economics as a social scienceDescribe the study of how societies allocate scarce resources among competing uses.ApplicationFrames every later topic as a question about allocation.Easy
• 2ScarcityExplain limited resources set against unlimited wants.ApplicationThe single condition that creates the need for economics.Easy
• 3The factors of productionIdentify land, labour, capital and entrepreneurship and their rewards.ApplicationExplains the origin of rent, wages, interest and profit.Easy
• 4Choice and the basic economic questionsIdentify what, how and for whom to produce.ApplicationThe three questions every economic system must answer.Easy
• 5Opportunity costDefine the value of the next best alternative forgone.ApplicationTurns every decision into a comparison rather than a wish list.Easy
• 6The production possibilities curveDescribe maximum combinations of two goods with fixed resources.ApplicationThe first diagram used to show scarcity, choice and efficiency.Easy

Medium — Applications

• 7Efficiency and unattainable points on the curveExplain points on, inside and beyond the frontier.ApplicationDistinguishes unemployment of resources from impossibility.Medium
• 8The shape of the production possibilities curveExplain increasing opportunity cost as resources are reallocated.ApplicationExplains why the curve is concave rather than a straight line.Medium
• 9Shifts in the production possibilities curveExplain growth from more or better resources.ApplicationLinks the model directly to long-run economic growth.Medium
• 10Capital goods against consumer goodsExplain the trade-off between present and future consumption.ApplicationExplains why investment lowers living standards today.Medium
• 11Free goods and economic goodsDistinguish goods with and without an opportunity cost.ApplicationClarifies exactly what economics concerns itself with.Medium
• 12Economic systemsCompare free market, planned and mixed allocation of resources.ApplicationPlaces any real economy on a spectrum of intervention.Medium

Hard — Structured IB Questions

• 13Applying opportunity cost to a policy decisionIdentify what a government forgoes by choosing one programme.ApplicationThe reasoning examiners expect in every evaluation.Hard
• 14Analysing movement along the frontierCalculate opportunity cost between two points on the curve.ApplicationThe standard quantitative task using this model.Hard
• 15Distinguishing actual from potential outputExplain the gap between current production and capacity.ApplicationSeparates a recession from a fall in productive capacity.Hard
• 16Evaluating the production possibilities modelAssess the two-good and fixed-technology assumptions.ApplicationA required critique whenever the model is used.Hard
• 17Analysing growth using the frontierExplain how investment today shifts the curve outward tomorrow.ApplicationConnects microeconomic choice to macroeconomic growth.Hard
• 18Evaluating scarcity in a specific contextAssess which resource genuinely constrains a named outcome.ApplicationPrevents vague assertions that everything is scarce.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated argument about scarcity and choiceLink scarcity, opportunity cost and efficiency in one explanation.ApplicationThe foundation of every well-structured economics answer.Very Hard
• 20Evaluating economic systems against each otherJudge market and planned allocation on efficiency and equity.ApplicationIntroduces the efficiency and equity trade-off used throughout.Very Hard
• 21Assessing sustainability using the frontierEvaluate output that erodes the resource base over time.ApplicationConnects Chapter 1 to sustainable development in 4.7.Very Hard
• 22Evaluating opportunity cost in environmental decisionsAssess trade-offs between output and environmental quality.ApplicationApplies core theory to a contemporary policy problem.Very Hard
• 23Evaluating the limits of rational allocationAssess whether decisions are actually made on cost-benefit grounds.ApplicationLinks foundations to behavioural economics in 2.4.Very Hard
• 24Synthesis: scarcity, allocation and economic reasoningIntegrate scarcity, choice, cost and systems into one framework.ApplicationA capstone model reused in every remaining chapter.Very Hard

Easy — Foundations

• 1Positive and normative statementsDistinguish testable claims from value judgements.ApplicationDetermines whether a statement can be settled by evidence.Easy
• 2Economic modelsDescribe simplified representations used to explain behaviour.ApplicationExplains why models omit most of the real world deliberately.Easy
• 3The ceteris paribus assumptionExplain holding other variables constant to isolate one effect.ApplicationThe assumption behind every demand and supply diagram.Easy
• 4Microeconomics and macroeconomicsDistinguish individual markets from whole-economy analysis.ApplicationPlaces any question in the correct analytical framework.Easy
• 5Economic data and its usesIdentify time series, cross-section and index number data.ApplicationThe evidence base for testing economic claims.Easy
• 6Correlation and causationDistinguish association between variables from cause and effect.ApplicationPrevents the most common error in data interpretation.Easy

Medium — Applications

• 7Classical economic thoughtDescribe self-correcting markets and limited government.ApplicationThe intellectual origin of free-market policy positions.Medium
• 8Keynesian economic thoughtDescribe demand deficiency and an active role for government.ApplicationThe intellectual basis of demand management policy.Medium
• 9Monetarist thoughtDescribe the emphasis on money supply growth and inflation.ApplicationExplains the shift to inflation-targeting central banks.Medium
• 10New classical and supply-side thoughtDescribe expectations, incentives and productive capacity.ApplicationThe basis of supply-side policy in 3.7.Medium
• 11Behavioural challenges to economic assumptionsDescribe evidence that agents do not always maximise.ApplicationIntroduces the critique developed fully in 2.4.Medium
• 12The role of assumptions in economic reasoningExplain how an assumption shapes a model's conclusion.ApplicationExplains why economists disagree about the same evidence.Medium

Hard — Structured IB Questions

• 13Identifying positive and normative claims in a textClassify statements accurately from an extract.ApplicationA frequently examined skill in Paper 1 and Paper 2.Hard
• 14Evaluating an economic modelAssess whether its assumptions fit the situation analysed.ApplicationThe standard evaluative line for any diagram used.Hard
• 15Analysing competing schools on one policy questionContrast classical and Keynesian responses to a recession.ApplicationExplains genuine policy disagreement rather than error.Hard
• 16Interpreting economic data criticallyAssess sample, definition and time period before concluding.ApplicationPrevents overconfident conclusions from a single statistic.Hard
• 17Evaluating the ceteris paribus assumptionAssess the consequences when other variables do not stay constant.ApplicationExplains why predicted outcomes often fail to occur.Hard
• 18Assessing the use of index numbersInterpret base years, weighting and real against nominal values.ApplicationEssential for reading inflation and output data correctly.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated methodological critiqueCombine assumptions, evidence and value judgements in one assessment.ApplicationThe full evaluative structure for a theory question.Very Hard
• 20Evaluating the objectivity of economicsJudge how far value judgements shape economic conclusions.ApplicationA high-level conclusion that lifts an evaluation.Very Hard
• 21Assessing the predictive power of economic modelsEvaluate forecasting failures and their causes.ApplicationExplains scepticism about economic prediction.Very Hard
• 22Evaluating pluralism in economic thoughtAssess the value of retaining competing schools of analysis.ApplicationJustifies studying more than one theoretical framework.Very Hard
• 23Assessing economics and real world complexityEvaluate model simplification against explanatory usefulness.ApplicationThe central methodological trade-off in the subject.Very Hard
• 24Synthesis: method, models and economic judgementIntegrate assumptions, evidence and theory into one framework.ApplicationA capstone framework for evaluating any economic claim.Very Hard

Easy — Foundations

• 1Demand definedDescribe quantity consumers are willing and able to buy at each price.ApplicationDistinguishes economic demand from mere desire.Easy
• 2The law of demandState the inverse relationship between price and quantity demanded.ApplicationThe foundation of every demand diagram.Easy
• 3The demand curveDraw a downward-sloping curve with correctly labelled axes.ApplicationThe diagram examiners expect in almost every micro answer.Easy
• 4The income effectExplain how a price fall raises real purchasing power.ApplicationOne of the two explanations for the law of demand.Easy
• 5The substitution effectExplain switching towards a good that has become relatively cheaper.ApplicationThe second explanation for the downward slope.Easy
• 6Movements along the demand curveDistinguish extensions and contractions caused by price changes.ApplicationPrevents the most frequently penalised diagram error.Easy

Medium — Applications

• 7Shifts in the demand curveExplain changes caused by non-price determinants.ApplicationSeparates a change in demand from a change in quantity demanded.Medium
• 8Income as a determinant of demandExplain demand changes for normal and inferior goods.ApplicationLinks demand analysis to income elasticity in 2.5.Medium
• 9Prices of related goodsExplain substitutes and complements as demand determinants.ApplicationExplains linked market effects in extended answers.Medium
• 10Tastes, preferences and advertisingExplain how consumer attitudes shift the curve.ApplicationExplains demand change without any price or income change.Medium
• 11Number of consumers and demographic changeExplain market size effects on total demand.ApplicationExplains long-run demand growth in specific markets.Medium
• 12Expectations of future pricesExplain how anticipated changes alter demand today.ApplicationExplains speculative buying and stockpiling behaviour.Medium

Hard — Structured IB Questions

• 13Deriving market demand from individual demandSum individual quantities horizontally at each price.ApplicationExplains how individual choices produce a market curve.Hard
• 14Analysing a shift caused by a specific eventIdentify the determinant involved and the direction of shift.ApplicationThe core applied task in demand questions.Hard
• 15Distinguishing shifts from movements in an event chainClassify each effect correctly in a multi-step change.ApplicationThe most common source of lost marks in micro answers.Hard
• 16Analysing linked marketsTrace how a price change in one market shifts demand in another.ApplicationProduces the depth expected in extended response.Hard
• 17Evaluating the law of demand exceptionsAssess Veblen and Giffen cases against the standard law.ApplicationAdds a critical dimension to a descriptive topic.Hard
• 18Analysing demand from a data setConstruct a demand curve from a schedule and interpret it.ApplicationA frequently examined quantitative task.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated demand analysisCombine determinants, direction and magnitude into one explanation.ApplicationThe complete structure for a demand question.Very Hard
• 20Evaluating the assumptions behind the demand curveAssess ceteris paribus and rational choice assumptions.ApplicationConnects demand theory to behavioural economics in 2.4.Very Hard
• 21Assessing demand analysis for policy predictionEvaluate the reliability of demand forecasts for a tax change.ApplicationLinks demand theory to government intervention in 2.7.Very Hard
• 22Evaluating advertising as a demand determinantAssess persuasive influence against informational value.ApplicationIntroduces an efficiency and welfare dimension.Very Hard
• 23Assessing demand change and consumer welfareEvaluate the effect of a demand shift on consumer surplus.ApplicationConnects 2.1 directly to welfare analysis in 2.3.Very Hard
• 24Synthesis: demand, determinants and market outcomesIntegrate price, determinants and shifts into one model.ApplicationA capstone framework for all microeconomic analysis.Very Hard

Easy — Foundations

• 1Supply definedDescribe quantity producers are willing and able to sell at each price.ApplicationEstablishes the producer side of every market model.Easy
• 2The law of supplyState the positive relationship between price and quantity supplied.ApplicationThe foundation of every supply diagram.Easy
• 3The supply curveDraw an upward-sloping curve with correctly labelled axes.ApplicationThe second essential diagram in microeconomics.Easy
• 4The profit motive explanationExplain higher prices making additional output profitable.ApplicationThe behavioural reason behind the law of supply.Easy
• 5Increasing marginal costsExplain rising costs of producing extra units.ApplicationThe cost-based reason for the upward slope.Easy
• 6Movements along the supply curveDistinguish extensions and contractions caused by price.ApplicationPrevents the mirror image of the demand diagram error.Easy

Medium — Applications

• 7Shifts in the supply curveExplain changes caused by non-price determinants.ApplicationSeparates a change in supply from a change in quantity supplied.Medium
• 8Costs of factors of productionExplain wage, raw material and energy cost effects on supply.ApplicationThe most frequently examined supply determinant.Medium
• 9Technology and productivityExplain how improved methods increase supply at every price.ApplicationExplains long-run falls in real prices.Medium
• 10Indirect taxes and subsidies on supplyExplain the vertical shift each causes.ApplicationLinks supply directly to intervention analysis in 2.7.Medium
• 11Prices of related goods in productionExplain competitive and joint supply relationships.ApplicationExplains linked supply effects across markets.Medium
• 12Expectations, shocks and number of firmsExplain supply changes from entry, exit and disruption.ApplicationExplains sudden supply shifts in commodity markets.Medium

Hard — Structured IB Questions

• 13Deriving market supply from individual supplySum individual quantities horizontally at each price.ApplicationExplains how firm decisions produce a market curve.Hard
• 14Analysing a supply shift caused by a specific eventIdentify the determinant and the direction of shift.ApplicationThe core applied task in supply questions.Hard
• 15Analysing the effect of an indirect tax on supplyShow the shift and the vertical distance representing the tax.ApplicationA diagram examined repeatedly in Paper 1 and Paper 3.Hard
• 16Distinguishing supply shocks from price responsesClassify each effect correctly in a multi-step change.ApplicationEssential accuracy in extended market analysis.Hard
• 17Analysing supply in the short run and long runExplain why supply is more responsive over longer periods.ApplicationLinks supply analysis to elasticity in 2.6.Hard
• 18Analysing supply from a data setConstruct a supply curve from a schedule and interpret it.ApplicationA frequently examined quantitative task.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated supply analysisCombine determinants, direction and magnitude into one explanation.ApplicationThe complete structure for a supply question.Very Hard
• 20Evaluating the assumptions behind the supply curveAssess profit maximisation and cost behaviour assumptions.ApplicationConnects supply theory to firm objectives in 2.4.Very Hard
• 21Assessing supply responses to environmental regulationEvaluate cost increases against emission reduction.ApplicationApplies supply analysis to a contemporary policy issue.Very Hard
• 22Evaluating supply chain disruptionAssess the market consequences of a sudden input shortage.ApplicationExplains commodity price spikes with theory.Very Hard
• 23Assessing supply change and producer welfareEvaluate the effect of a supply shift on producer surplus.ApplicationConnects 2.2 directly to welfare analysis in 2.3.Very Hard
• 24Synthesis: supply, costs and market outcomesIntegrate price, cost and determinants into one supply model.ApplicationA capstone framework for producer-side analysis.Very Hard

Easy — Foundations

• 1Market equilibriumDescribe the price at which quantity demanded equals quantity supplied.ApplicationThe point every market model is built to locate.Easy
• 2Excess demandExplain shortage when price is below equilibrium.ApplicationExplains upward price pressure and queues.Easy
• 3Excess supplyExplain surplus when price is above equilibrium.ApplicationExplains discounting and unsold inventory.Easy
• 4The signalling function of pricesExplain how prices communicate information to producers.ApplicationOne of the three roles that make markets allocate.Easy
• 5The incentive function of pricesExplain how prices reward reallocation of resources.ApplicationExplains why producers respond to changing demand.Easy
• 6The rationing function of pricesExplain how prices allocate scarce goods among buyers.ApplicationCompletes the account of the price mechanism.Easy

Medium — Applications

• 7Consumer surplusCalculate the area between the demand curve and the price.ApplicationMeasures consumer welfare gained from trading.Medium
• 8Producer surplusCalculate the area between the price and the supply curve.ApplicationMeasures producer welfare gained from trading.Medium
• 9Social surplus and allocative efficiencyExplain maximised total welfare at competitive equilibrium.ApplicationThe benchmark against which market failure is judged.Medium
• 10Effects of a demand shift on equilibriumPredict new price and quantity after a demand change.ApplicationThe standard comparative statics task.Medium
• 11Effects of a supply shift on equilibriumPredict new price and quantity after a supply change.ApplicationThe mirror task for producer-side changes.Medium
• 12Simultaneous shifts in demand and supplyExplain determinate and indeterminate outcomes.ApplicationExplains why one of price or quantity becomes ambiguous.Medium

Hard — Structured IB Questions

• 13Calculating equilibrium from linear functionsSolve demand and supply equations for price and quantity.ApplicationA core HL Paper 3 quantitative skill.Hard
• 14Calculating consumer and producer surplus from functionsCompute areas using intercepts and equilibrium values.ApplicationA frequently examined HL calculation.Hard
• 15Analysing a market disturbance step by stepTrace shortage, price adjustment and new equilibrium.ApplicationDemonstrates the adjustment process rather than the endpoint.Hard
• 16Analysing welfare changes after a market shiftCalculate the gain or loss in total surplus.ApplicationTurns diagram analysis into quantified welfare conclusions.Hard
• 17Evaluating the speed of market adjustmentAssess how quickly markets clear in practice.ApplicationExplains persistent shortages despite theory.Hard
• 18Analysing simultaneous shifts with dataDetermine the net outcome using relative shift magnitudes.ApplicationA demanding applied task examiners use to discriminate.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated market analysisCombine shifts, adjustment and welfare into one explanation.ApplicationThe complete structure for a market question.Very Hard
• 20Evaluating the price mechanism as an allocative deviceAssess efficiency against equity and market failure.ApplicationThe central evaluation of microeconomics.Very Hard
• 21Assessing the assumptions behind allocative efficiencyEvaluate competition, information and externality assumptions.ApplicationSets up the market failure analysis in 2.8 to 2.11.Very Hard
• 22Evaluating equilibrium analysis in volatile marketsAssess the usefulness of a static model in unstable conditions.ApplicationA required critique of comparative statics.Very Hard
• 23Assessing distributional consequences of price changesEvaluate who gains and loses from a price rise.ApplicationConnects efficiency analysis to equity in 2.12.Very Hard
• 24Synthesis: equilibrium, surplus and market efficiencyIntegrate adjustment, welfare and allocation into one model.ApplicationA capstone framework for the whole of Chapter 2.Very Hard

Easy — Foundations

• 1Assumptions of rational consumer choiceDescribe consistent preferences and utility maximisation.ApplicationThe behavioural foundation of the demand curve.Easy
• 2Utility and marginal utilityExplain satisfaction gained and the fall in extra satisfaction.ApplicationExplains why demand curves slope downward.Easy
• 3Perfect information assumptionExplain the assumption that consumers know prices and quality.ApplicationSets up the asymmetric information analysis in 2.10.Easy
• 4Self-interest and utility maximisationExplain the assumption that agents pursue their own welfare.ApplicationThe standard behavioural model in microeconomics.Easy
• 5Bounded rationalityExplain limited information, time and processing capacity.ApplicationThe first major challenge to the standard model.Easy
• 6Bounded self-controlExplain the gap between intention and actual behaviour.ApplicationExplains under-saving and health-related choices.Easy

Medium — Applications

• 7Bounded selfishnessExplain fairness, reciprocity and altruism in decisions.ApplicationExplains behaviour in experimental games.Medium
• 8Imperfect information and rules of thumbExplain heuristics used in place of full calculation.ApplicationExplains systematic and predictable decision errors.Medium
• 9Choice architecture and nudgesDescribe framing and default settings that shape choices.ApplicationThe basis of behavioural policy in 2.7.Medium
• 10Profit maximisation as a firm objectiveExplain producing where marginal cost equals marginal revenue.ApplicationThe standard assumption in market structure analysis.Medium
• 11Alternative firm objectivesIdentify growth, market share, satisficing and revenue maximisation.ApplicationExplains firm behaviour the standard model cannot.Medium
• 12Corporate social responsibility as an objectiveExplain firms pursuing social and environmental goals.ApplicationExplains decisions that reduce short-run profit.Medium

Hard — Structured IB Questions

• 13Applying behavioural insights to a real choiceExplain observed behaviour using a specific bias.ApplicationConverts theory recall into applied analysis.Hard
• 14Analysing the effect of default optionsPredict outcomes when the default setting changes.ApplicationThe most tested behavioural policy application.Hard
• 15Evaluating nudges against traditional interventionCompare cost, effectiveness and freedom of choice.ApplicationA frequently set evaluation in behavioural questions.Hard
• 16Analysing firm behaviour under alternative objectivesPredict price and output when profit is not maximised.ApplicationExplains outcomes that contradict standard predictions.Hard
• 17Evaluating rational choice theoryAssess predictive success against documented anomalies.ApplicationThe central evaluation in this topic.Hard
• 18Assessing the ethics of choice architectureEvaluate paternalism against autonomy in policy design.ApplicationA high-level evaluation examiners reward.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated behavioural analysisCombine bounded rationality, framing and policy in one argument.ApplicationThe complete structure for a behavioural question.Very Hard
• 20Evaluating behavioural policy effectivenessAssess evidence on the durability of nudge effects.ApplicationPrevents overstating the power of behavioural policy.Very Hard
• 21Assessing firm objectives and market outcomesEvaluate how objectives change efficiency and consumer welfare.ApplicationConnects 2.4 directly to market structures in 2.11.Very Hard
• 22Evaluating behavioural economics as a replacement or supplementJudge whether it revises or overturns standard theory.ApplicationA conceptual conclusion that lifts an evaluation.Very Hard
• 23Assessing behavioural insights in environmental policyEvaluate nudges against taxation for reducing emissions.ApplicationConnects 2.4 to externality correction in 2.8.Very Hard
• 24Synthesis: rationality, behaviour and economic predictionIntegrate assumptions, anomalies and policy into one framework.ApplicationA capstone model for evaluating economic behaviour.Very Hard

Easy — Foundations

• 1Price elasticity of demand definedDescribe responsiveness of quantity demanded to a price change.ApplicationQuantifies the demand relationship for decision-making.Easy
• 2Calculating price elasticity of demandCompute percentage change in quantity over percentage change in price.ApplicationThe most frequently examined elasticity calculation.Easy
• 3Interpreting elasticity valuesClassify elastic, inelastic and unitary demand from a coefficient.ApplicationConverts a number into an economic conclusion.Easy
• 4Perfectly elastic and perfectly inelastic demandDescribe the extreme cases and their curve shapes.ApplicationProvides the boundaries for elasticity reasoning.Easy
• 5Determinants of price elasticity of demandIdentify substitutes, necessity, income share and time.ApplicationExplains why elasticity differs across goods.Easy
• 6Elasticity along a straight-line demand curveExplain why elasticity varies at every point.ApplicationPrevents the error of labelling a whole curve elastic.Easy

Medium — Applications

• 7Elasticity and total revenueExplain revenue changes following a price change.ApplicationThe key application for firms setting prices.Medium
• 8Income elasticity of demand definedDescribe responsiveness of demand to a change in income.ApplicationDistinguishes normal, inferior and luxury goods.Medium
• 9Calculating income elasticity of demandCompute percentage change in quantity over percentage change in income.ApplicationA regularly examined HL calculation.Medium
• 10Interpreting income elasticity valuesClassify goods using the sign and size of the coefficient.ApplicationPredicts sectoral change as an economy grows.Medium
• 11Elasticity and indirect taxationExplain how elasticity determines tax revenue and incidence.ApplicationExplains why governments tax inelastic goods.Medium
• 12Elasticity and primary commoditiesExplain low elasticity and price volatility in agriculture.ApplicationConnects elasticity to development issues in Chapter 4.Medium

Hard — Structured IB Questions

• 13Calculating and applying elasticity to a pricing decisionRecommend a price change using a calculated coefficient.ApplicationThe applied task examiners set most often.Hard
• 14Analysing tax incidence using elasticityDetermine the split of a tax between consumers and producers.ApplicationA core HL diagram and calculation combined.Hard
• 15Evaluating a firm's pricing strategy using elasticityAssess revenue consequences of raising or cutting price.ApplicationTurns a calculation into a justified recommendation.Hard
• 16Analysing income elasticity for sectoral forecastingPredict which sectors grow fastest as incomes rise.ApplicationLinks microeconomic tools to structural change.Hard
• 17Evaluating the reliability of elasticity estimatesAssess data, time period and ceteris paribus problems.ApplicationA required critique in every elasticity evaluation.Hard
• 18Analysing elasticity and government revenueEvaluate which goods generate stable tax revenue.ApplicationConnects elasticity to fiscal policy in 3.6.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated elasticity analysisCombine calculation, determinants and application in one answer.ApplicationThe complete structure for an elasticity question.Very Hard
• 20Evaluating elasticity in policy designAssess how elasticity determines whether a tax changes behaviour.ApplicationExplains why some sin taxes fail to reduce consumption.Very Hard
• 21Assessing elasticity and the burden on low-income consumersEvaluate the regressive effect of taxing inelastic necessities.ApplicationConnects elasticity to equity analysis in 2.12.Very Hard
• 22Evaluating elasticity for primary producersAssess income instability caused by inelastic demand.ApplicationExplains the case for commodity price support schemes.Very Hard
• 23Assessing elasticity change over timeEvaluate how substitutes emerge and raise elasticity.ApplicationExplains why short-run policy effects fade.Very Hard
• 24Synthesis: elasticity, revenue and policy effectivenessIntegrate measurement, determinants and application into one model.ApplicationA capstone framework for applied microeconomics.Very Hard

Easy — Foundations

• 1Price elasticity of supply definedDescribe responsiveness of quantity supplied to a price change.ApplicationQuantifies how quickly producers can react.Easy
• 2Calculating price elasticity of supplyCompute percentage change in quantity over percentage change in price.ApplicationA routinely examined quantitative task.Easy
• 3Interpreting elasticity of supply valuesClassify elastic, inelastic and unitary supply from a coefficient.ApplicationConverts the coefficient into an economic conclusion.Easy
• 4Perfectly elastic and perfectly inelastic supplyDescribe the extreme cases and their curve shapes.ApplicationProvides the boundaries for supply responsiveness.Easy
• 5Time as a determinant of supply elasticityExplain momentary, short-run and long-run responsiveness.ApplicationThe most important determinant in every application.Easy
• 6Spare capacity and stock levelsExplain how unused capacity raises supply elasticity.ApplicationExplains why supply responds faster in a recession.Easy

Medium — Applications

• 7Mobility of factors of productionExplain how factor flexibility affects supply response.ApplicationExplains low elasticity in specialised industries.Medium
• 8Ease of entry into an industryExplain how barriers to entry reduce supply responsiveness.ApplicationLinks supply elasticity to market structure in 2.11.Medium
• 9Supply elasticity of primary commoditiesExplain low responsiveness caused by production lags.ApplicationExplains price volatility in agricultural markets.Medium
• 10Supply elasticity of manufactured goodsExplain higher responsiveness from flexible production.ApplicationExplains price stability in industrial markets.Medium
• 11Supply elasticity and price volatilityExplain why inelastic supply amplifies price swings.ApplicationConnects elasticity to commodity market instability.Medium
• 12Supply elasticity and government interventionExplain how elasticity shapes the effect of a subsidy.ApplicationLinks supply elasticity to intervention analysis in 2.7.Medium

Hard — Structured IB Questions

• 13Calculating and applying supply elasticityUse a computed coefficient to predict a market outcome.ApplicationThe core applied task in this topic.Hard
• 14Analysing tax incidence using supply elasticityDetermine the burden split when supply is relatively inelastic.ApplicationCompletes the incidence analysis begun in 2.5.Hard
• 15Evaluating the effect of a subsidy given supply elasticityAssess how much output actually rises.ApplicationPrevents assuming subsidies always expand supply.Hard
• 16Analysing commodity price instabilityExplain volatility using inelastic supply and demand together.ApplicationExplains a central problem in development economics.Hard
• 17Evaluating buffer stock schemesAssess price stabilisation against storage and cost problems.ApplicationConnects supply elasticity to policy in Chapter 4.Hard
• 18Analysing supply elasticity across time periodsEvaluate how a market response changes over months and years.ApplicationExplains why short-run and long-run outcomes differ.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated supply elasticity analysisCombine calculation, determinants and application in one answer.ApplicationThe complete structure for a supply elasticity question.Very Hard
• 20Evaluating supply-side policy through elasticityAssess whether policies genuinely raise responsiveness.ApplicationConnects microeconomic tools to macro policy in 3.7.Very Hard
• 21Assessing the reliability of supply elasticity estimatesEvaluate data limitations and changing production conditions.ApplicationA required critique in every elasticity evaluation.Very Hard
• 22Evaluating elasticity and the effect of price controlsAssess shortage size given inelastic supply.ApplicationConnects supply elasticity to price ceilings in 2.7.Very Hard
• 23Assessing supply elasticity in the green transitionEvaluate the speed at which renewable capacity can expand.ApplicationApplies theory to a contemporary policy debate.Very Hard
• 24Synthesis: supply responsiveness, volatility and policyIntegrate determinants, measurement and application into one model.ApplicationA capstone framework for producer-side policy analysis.Very Hard

Easy — Foundations

• 1Reasons for government interventionIdentify efficiency, equity, revenue and merit good objectives.ApplicationThe motive list every intervention question begins from.Easy
• 2Indirect taxesDistinguish specific and ad valorem taxes on producers.ApplicationThe main tool for discouraging consumption.Easy
• 3Diagram of a specific indirect taxShow the parallel upward shift of the supply curve.ApplicationThe diagram examined most often in this topic.Easy
• 4Diagram of an ad valorem taxShow the pivoting shift of the supply curve.ApplicationDistinguishes percentage taxes from fixed-amount taxes.Easy
• 5SubsidiesDescribe payments to producers to lower cost and raise output.ApplicationThe main tool for encouraging beneficial consumption.Easy
• 6Price ceilingsDescribe a maximum price set below equilibrium.ApplicationExplains shortages, queues and parallel markets.Easy

Medium — Applications

• 7Price floorsDescribe a minimum price set above equilibrium.ApplicationExplains surpluses in agriculture and labour markets.Medium
• 8Minimum wages as a price floorExplain the effect on employment and earnings.ApplicationConnects price controls to labour market outcomes.Medium
• 9Direct provision of goods and servicesDescribe government supply of education, health and infrastructure.ApplicationExplains public sector output in a mixed economy.Medium
• 10Regulation and legislationDescribe rules that restrict or require specific behaviour.ApplicationThe most common non-price intervention in practice.Medium
• 11Behavioural nudges as policyDescribe defaults and framing used to change choices.ApplicationConnects behavioural theory in 2.4 to real policy.Medium
• 12Government revenue and expenditure from interventionCalculate tax revenue and subsidy cost areas on a diagram.ApplicationLinks microeconomic policy to the budget in 3.6.Medium

Hard — Structured IB Questions

• 13Calculating the welfare effects of an indirect taxCompute consumer loss, producer loss, revenue and deadweight loss.ApplicationA central HL Paper 3 quantitative task.Hard
• 14Calculating the welfare effects of a subsidyCompute gains, government cost and efficiency loss.ApplicationThe mirror calculation to indirect taxation.Hard
• 15Analysing tax incidence with different elasticitiesDetermine the burden split from curve gradients.ApplicationCombines 2.5, 2.6 and 2.7 in one analysis.Hard
• 16Analysing the consequences of a price ceilingExplain shortage, rationing and welfare loss.ApplicationThe standard applied task for maximum prices.Hard
• 17Analysing the consequences of a price floorExplain surplus, disposal cost and welfare loss.ApplicationThe standard applied task for minimum prices.Hard
• 18Evaluating the effectiveness of an indirect taxAssess behaviour change given elasticity and substitutes.ApplicationExplains why some taxes raise revenue but change little.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated intervention evaluationCombine diagram, welfare calculation and stakeholder effects.ApplicationThe complete structure for an intervention question.Very Hard
• 20Evaluating price controls against alternative policiesJudge controls against subsidies and direct provision.ApplicationRequires comparison rather than isolated assessment.Very Hard
• 21Assessing the distributional effects of interventionEvaluate which income groups gain and lose from a policy.ApplicationConnects intervention to equity analysis in 2.12.Very Hard
• 22Evaluating government failureAssess unintended consequences, information gaps and capture.ApplicationThe essential counterweight to market failure arguments.Very Hard
• 23Assessing nudges against taxation and regulationEvaluate cost, effectiveness and freedom of choice.ApplicationA contemporary evaluation examiners consistently reward.Very Hard
• 24Synthesis: intervention, efficiency and equityIntegrate objectives, tools and consequences into one framework.ApplicationA capstone model for all policy questions.Very Hard

Easy — Foundations

• 1Market failure definedDescribe allocation that fails to maximise social welfare.ApplicationThe organising concept for topics 2.8 to 2.12.Easy
• 2Private, external and social costsDistinguish the three cost concepts precisely.ApplicationThe vocabulary every externality diagram depends on.Easy
• 3Private, external and social benefitsDistinguish the three benefit concepts precisely.ApplicationCompletes the framework for welfare analysis.Easy
• 4Negative production externalitiesDescribe spillover costs from production such as pollution.ApplicationExplains overproduction relative to the social optimum.Easy
• 5Negative consumption externalitiesDescribe spillover costs from consumption such as smoking.ApplicationExplains overconsumption of demerit goods.Easy
• 6Positive production externalitiesDescribe spillover benefits such as research diffusion.ApplicationExplains underproduction relative to the social optimum.Easy

Medium — Applications

• 7Positive consumption externalitiesDescribe spillover benefits such as vaccination.ApplicationExplains underconsumption of merit goods.Medium
• 8Welfare loss from externalitiesIdentify the deadweight loss triangle on the diagram.ApplicationQuantifies the cost of the misallocation.Medium
• 9Common access resourcesDescribe rival but non-excludable resources such as fisheries.ApplicationExplains depletion despite obvious collective interest.Medium
• 10The tragedy of the commonsExplain individually rational overuse of a shared resource.ApplicationThe central model in environmental economics.Medium
• 11Sustainability and resource depletionExplain consumption that reduces future productive capacity.ApplicationConnects externalities to development in 4.7.Medium
• 12International agreements on shared resourcesDescribe treaties and carbon trading schemes.ApplicationExplains the response to global externality problems.Medium

Hard — Structured IB Questions

• 13Drawing and labelling externality diagramsConstruct the correct diagram for each of the four cases.ApplicationThe most frequently examined diagram set in Chapter 2.Hard
• 14Calculating welfare loss from a diagramCompute the deadweight loss area from given values.ApplicationA core HL quantitative task.Hard
• 15Analysing carbon taxesExplain internalising the external cost through a tax.ApplicationThe leading policy response to climate externalities.Hard
• 16Analysing tradable permit schemesExplain how a market in permits prices the externality.ApplicationExplains cap-and-trade systems in practice.Hard
• 17Analysing subsidies for positive externalitiesExplain correcting underconsumption through subsidy.ApplicationExplains public support for education and vaccination.Hard
• 18Evaluating market-based against regulatory correctionCompare taxes and permits with direct regulation.ApplicationThe central evaluation in externality questions.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated externality analysisCombine diagram, welfare loss and policy in one answer.ApplicationThe complete structure for a market failure question.Very Hard
• 20Evaluating the difficulty of valuing externalitiesAssess measurement problems in setting a corrective tax.ApplicationExplains why optimal correction is rarely achieved.Very Hard
• 21Assessing the distributional effects of environmental taxesEvaluate the regressive burden on low-income households.ApplicationConnects externality policy to equity in 2.12.Very Hard
• 22Evaluating international cooperation on externalitiesAssess free-riding and enforcement problems.ApplicationExplains slow progress on global environmental policy.Very Hard
• 23Assessing non-government responses to externalitiesEvaluate voluntary action, pressure groups and social norms.ApplicationWidens the answer beyond government intervention.Very Hard
• 24Synthesis: externalities, welfare and correctionIntegrate cause, measurement and policy into one framework.ApplicationA capstone model for environmental economics.Very Hard

Easy — Foundations

• 1Public goods definedDescribe goods that are non-excludable and non-rivalrous.ApplicationExplains why markets fail to supply them at all.Easy
• 2Non-excludabilityExplain the impossibility of preventing use once provided.ApplicationThe characteristic that creates the free-rider problem.Easy
• 3Non-rivalryExplain that one person's use does not reduce availability.ApplicationExplains why the marginal cost of an extra user is zero.Easy
• 4The free-rider problemExplain incentives to consume without contributing.ApplicationThe core reason for market non-provision.Easy
• 5Private goods contrasted with public goodsCompare excludable rival goods with public goods.ApplicationPlaces any good in the correct analytical category.Easy
• 6Quasi-public goodsDescribe goods partially excludable or partially rival.ApplicationExplains roads, beaches and congested public facilities.Easy

Medium — Applications

• 7Merit goods and public goods distinguishedSeparate underconsumption from non-provision.ApplicationPrevents the most common conceptual error in this topic.Medium
• 8Examples of pure public goodsIdentify national defence, street lighting and flood defence.ApplicationProvides accurate examples for written answers.Medium
• 9Direct government provisionExplain tax-funded supply of public goods.ApplicationThe standard policy response to non-provision.Medium
• 10Contracting out provisionDescribe government funding with private production.ApplicationExplains public-private delivery of public services.Medium
• 11Financing public goods through taxationExplain compulsory contribution replacing voluntary payment.ApplicationLinks public goods to fiscal policy in 3.6.Medium
• 12Determining the optimal quantity of a public goodExplain summing individual valuations vertically.ApplicationExplains why efficient provision is hard to identify.Medium

Hard — Structured IB Questions

• 13Classifying goods using excludability and rivalryPlace a named good correctly in the four-way matrix.ApplicationThe applied task examined most often.Hard
• 14Analysing why a specific market underprovidesExplain non-provision using free-riding and zero price.ApplicationConverts definition into applied analysis.Hard
• 15Analysing the welfare consequences of non-provisionExplain the loss when a valuable good is not supplied.ApplicationJustifies intervention on efficiency grounds.Hard
• 16Evaluating direct provision against subsidised private supplyCompare cost, quality and accountability.ApplicationA frequently set evaluation in this topic.Hard
• 17Analysing technological change and excludabilityExplain how technology converts public into private goods.ApplicationExplains encryption, tolling and paywalls.Hard
• 18Evaluating the difficulty of valuing public goodsAssess preference revelation problems in provision decisions.ApplicationExplains over and under provision by governments.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated public goods analysisCombine characteristics, failure and policy in one answer.ApplicationThe complete structure for a public goods question.Very Hard
• 20Evaluating government provision efficiencyAssess bureaucracy, incentives and cost control.ApplicationThe government failure counterweight in this topic.Very Hard
• 21Assessing public goods and equityEvaluate who benefits and who pays for provision.ApplicationConnects provision decisions to distribution in 2.12.Very Hard
• 22Evaluating global public goodsAssess climate stability and disease control as shared goods.ApplicationExplains the international cooperation problem.Very Hard
• 23Assessing public goods in developing economiesEvaluate provision constrained by weak tax capacity.ApplicationConnects 2.9 to development obstacles in 4.9.Very Hard
• 24Synthesis: non-excludability, provision and welfareIntegrate characteristics, failure and policy into one framework.ApplicationA capstone model for public sector economics.Very Hard

Easy — Foundations

• 1Asymmetric information definedDescribe unequal information between buyers and sellers.ApplicationExplains failure even in competitive markets.Easy
• 2Adverse selectionExplain hidden information before a transaction occurs.ApplicationExplains market collapse in used goods and insurance.Easy
• 3Moral hazardExplain changed behaviour after a transaction is agreed.ApplicationExplains excessive risk-taking once insured.Easy
• 4The market for used goodsExplain quality uncertainty driving good sellers out.ApplicationThe classic illustration of adverse selection.Easy
• 5Insurance markets and informationExplain selection and behaviour problems facing insurers.ApplicationExplains screening, excesses and premium loading.Easy
• 6Credit markets and informationExplain lender uncertainty about borrower quality.ApplicationExplains collateral requirements and credit rationing.Easy

Medium — Applications

• 7Consequences of asymmetric informationExplain underprovision, overpricing and market failure.ApplicationThe welfare argument for intervention.Medium
• 8SignallingExplain informed parties credibly conveying quality.ApplicationExplains qualifications, warranties and certification.Medium
• 9ScreeningExplain uninformed parties inducing information revelation.ApplicationExplains insurance questionnaires and credit checks.Medium
• 10Government responses to information gapsIdentify regulation, disclosure rules and licensing.ApplicationThe standard policy toolkit for this failure.Medium
• 11Private responses to information gapsIdentify brands, reviews, guarantees and intermediaries.ApplicationShows markets partially solving their own failure.Medium
• 12Information gaps and behavioural bias combinedExplain how limited processing worsens information problems.ApplicationConnects 2.10 directly to behavioural economics in 2.4.Medium

Hard — Structured IB Questions

• 13Identifying the type of information failure in a caseClassify a described problem as adverse selection or moral hazard.ApplicationThe applied distinction examiners test most often.Hard
• 14Analysing the welfare loss from asymmetric informationExplain missing trades and inefficient allocation.ApplicationQuantifies the cost of the information gap.Hard
• 15Analysing signalling in labour marketsExplain qualifications as a signal of unobserved ability.ApplicationA frequently examined application.Hard
• 16Evaluating mandatory disclosure policiesAssess information provision against processing capacity.ApplicationExplains why labelling alone often changes little.Hard
• 17Analysing moral hazard in financial marketsExplain risk-taking under expectations of rescue.ApplicationExplains a central cause of financial instability.Hard
• 18Evaluating regulation against private solutionsCompare government rules with reputation and certification.ApplicationThe central evaluation in this topic.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated information failure analysisCombine classification, welfare loss and policy in one answer.ApplicationThe complete structure for an information question.Very Hard
• 20Evaluating the limits of information provisionAssess overload, complexity and comprehension problems.ApplicationPrevents assuming more information always improves outcomes.Very Hard
• 21Assessing information gaps in healthcare marketsEvaluate patient dependence on provider expertise.ApplicationExplains regulation and licensing in medicine.Very Hard
• 22Evaluating digital platforms and informationAssess reviews and ratings as solutions and as new problems.ApplicationA contemporary application examiners reward.Very Hard
• 23Assessing information asymmetry and inequalityEvaluate how information gaps disadvantage poorer consumers.ApplicationConnects 2.10 to equity analysis in 2.12.Very Hard
• 24Synthesis: information, trust and market efficiencyIntegrate cause, consequence and correction into one framework.ApplicationA capstone model for information economics.Very Hard

Easy — Foundations

• 1Characteristics of market structuresIdentify number of firms, product type, entry and information.ApplicationThe classification framework for the whole topic.Easy
• 2Total, average and marginal revenueCalculate the three revenue concepts from data.ApplicationThe revenue side of every firm diagram.Easy
• 3Total, average and marginal costCalculate the three cost concepts from data.ApplicationThe cost side of every firm diagram.Easy
• 4Economies and diseconomies of scaleExplain falling and rising long-run average cost.ApplicationExplains minimum efficient scale and concentration.Easy
• 5The profit maximisation ruleState production where marginal cost equals marginal revenue.ApplicationThe decision rule used in every structure diagram.Easy
• 6Perfect competition characteristicsDescribe many firms, identical products and free entry.ApplicationThe efficiency benchmark for all other structures.Easy

Medium — Applications

• 7Perfect competition in the short and long runExplain abnormal profit erosion through entry.ApplicationExplains the long-run normal profit outcome.Medium
• 8Monopoly characteristics and barriers to entryDescribe single seller protection from competition.ApplicationExplains persistent abnormal profit.Medium
• 9Monopoly price and output outcomesExplain higher price and lower output than competition.ApplicationThe core welfare criticism of monopoly.Medium
• 10Oligopoly and interdependenceDescribe few firms whose decisions depend on rivals.ApplicationExplains price rigidity and strategic behaviour.Medium
• 11Collusion and game theoryExplain cartels and the prisoner's dilemma outcome.ApplicationExplains why collusion is profitable but unstable.Medium
• 12Monopolistic competitionDescribe many firms with differentiated products.ApplicationExplains branding and excess capacity in retail markets.Medium

Hard — Structured IB Questions

• 13Drawing firm diagrams for each market structureConstruct accurate cost and revenue diagrams.ApplicationThe most heavily weighted diagram skill in Chapter 2.Hard
• 14Calculating profit and identifying profit areasCompute abnormal profit and shade it correctly.ApplicationA core HL quantitative and diagram task.Hard
• 15Analysing allocative and productive efficiencyCompare outcomes against price equals marginal cost and minimum average cost.ApplicationThe efficiency criteria used to judge every structure.Hard
• 16Analysing price discriminationExplain conditions and welfare effects of charging different prices.ApplicationA frequently examined HL application.Hard
• 17Evaluating monopoly against perfect competitionAssess efficiency, innovation and economies of scale.ApplicationThe central evaluation in market structure questions.Hard
• 18Analysing oligopoly outcomes using game theoryDetermine equilibrium in a simple payoff matrix.ApplicationA regularly examined HL analytical task.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated market structure evaluationCombine diagrams, efficiency and policy in one answer.ApplicationThe complete structure for a market power question.Very Hard
• 20Evaluating competition policyAssess regulation, break-up and merger control.ApplicationThe policy response to market power.Very Hard
• 21Assessing natural monopoly and regulationEvaluate price capping against efficiency and investment.ApplicationExplains regulation of utilities and networks.Very Hard
• 22Evaluating market power in digital marketsAssess network effects and data as barriers to entry.ApplicationA contemporary application examiners increasingly expect.Very Hard
• 23Assessing market power and income distributionEvaluate how abnormal profit affects the distribution of income.ApplicationConnects 2.11 to equity analysis in 2.12.Very Hard
• 24Synthesis: structure, conduct and economic performanceIntegrate concentration, behaviour and efficiency into one framework.ApplicationA capstone model for industrial economics.Very Hard

Easy — Foundations

• 1Efficiency and equity distinguishedSeparate maximising output from distributing it fairly.ApplicationThe central trade-off in normative economics.Easy
• 2Sources of incomeIdentify wages, rent, interest, profit and transfers.ApplicationExplains where household income actually comes from.Easy
• 3Wealth and income distinguishedSeparate a stock of assets from a flow of earnings.ApplicationPrevents a frequently penalised conceptual error.Easy
• 4Causes of unequal income distributionIdentify skills, capital ownership, discrimination and inheritance.ApplicationThe explanatory list for inequality questions.Easy
• 5Market outcomes and inequalityExplain how competitive markets can produce unequal results.ApplicationShows efficiency and fairness are separate criteria.Easy
• 6The Lorenz curveDescribe cumulative income plotted against cumulative population.ApplicationThe standard graphical measure of inequality.Easy

Medium — Applications

• 7The Gini coefficientDescribe the ratio measuring deviation from perfect equality.ApplicationThe standard numerical measure of inequality.Medium
• 8Poverty distinguished from inequalitySeparate absolute deprivation from relative distribution.ApplicationPrevents conflating two different policy problems.Medium
• 9Labour market explanations of wage differencesExplain productivity, education and bargaining power.ApplicationExplains persistent earnings gaps between groups.Medium
• 10Discrimination in marketsExplain unequal outcomes unrelated to productivity.ApplicationA market failure with distributional consequences.Medium
• 11Inheritance and capital ownershipExplain the persistence of wealth across generations.ApplicationExplains why inequality can be self-reinforcing.Medium
• 12The limits of market allocation for equityExplain why markets have no fairness objective.ApplicationJustifies redistribution as a separate policy aim.Medium

Hard — Structured IB Questions

• 13Constructing and interpreting a Lorenz curvePlot the curve from data and interpret its position.ApplicationA regularly examined applied task.Hard
• 14Calculating and interpreting a Gini coefficientCompute the coefficient and compare across countries.ApplicationTurns a diagram into a quantified comparison.Hard
• 15Analysing the causes of inequality in a specific economyIdentify the dominant cause from supplied evidence.ApplicationDirects policy recommendation at the actual cause.Hard
• 16Analysing the efficiency and equity trade-offExplain how redistribution can affect incentives.ApplicationThe central tension in every redistribution question.Hard
• 17Evaluating market outcomes on fairness groundsAssess whether an efficient outcome is socially acceptable.ApplicationIntroduces normative judgement explicitly.Hard
• 18Analysing inequality and economic growthEvaluate evidence that inequality helps or harms growth.ApplicationA contested empirical question examiners reward.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated inequality analysisCombine measurement, causes and consequences in one answer.ApplicationThe complete structure for a distribution question.Very Hard
• 20Evaluating the limitations of inequality measuresAssess what the Gini coefficient and Lorenz curve omit.ApplicationA required critique of any inequality statistic.Very Hard
• 21Assessing inequality of opportunity against outcomeEvaluate which form of equality policy should target.ApplicationA high-level normative distinction.Very Hard
• 22Evaluating market power and distributional outcomesAssess how concentration shifts income towards profit.ApplicationConnects 2.11 and 2.12 into one argument.Very Hard
• 23Assessing global inequality against national inequalityEvaluate distribution within and between countries.ApplicationConnects Chapter 2 to development in Chapter 4.Very Hard
• 24Synthesis: markets, distribution and social welfareIntegrate efficiency, equity and measurement into one framework.ApplicationA capstone model closing the whole of Chapter 2.Very Hard

Easy — Foundations

• 1National income definedDescribe the total income earned by a country's factors of production.ApplicationThe starting point for all macroeconomic measurement.Easy
• 2The circular flow of incomeDescribe the flow of income and spending between households and firms.ApplicationThe model underlying every national accounting identity.Easy
• 3Injections and leakagesIdentify investment, government spending and exports against saving, tax and imports.ApplicationExplains why national income rises or falls.Easy
• 4The three approaches to measuring outputExplain the output, income and expenditure methods.ApplicationShows why the three measures must give the same total.Easy
• 5Gross domestic productDescribe the value of final output produced within a country.ApplicationThe headline measure of economic activity.Easy
• 6Gross national incomeDescribe income earned by residents wherever it is generated.ApplicationDistinguishes domestic production from national income.Easy

Medium — Applications

• 7Nominal and real valuesExplain adjustment of money values for price changes.ApplicationPrevents mistaking inflation for genuine growth.Medium
• 8GDP per capitaCalculate national output divided by population.ApplicationConverts total output into an indicator of living standards.Medium
• 9Purchasing power parity adjustmentExplain conversion using relative price levels.ApplicationMakes international income comparisons meaningful.Medium
• 10The business cycleDescribe expansion, peak, contraction and trough.ApplicationPlaces any economy at a point in the cycle.Medium
• 11Limitations of national income as a welfare measureIdentify omitted output, distribution and environmental costs.ApplicationExplains why higher GDP need not mean better lives.Medium
• 12Alternative measures of well-beingIdentify happiness indices, green accounting and composite measures.ApplicationProvides alternatives to GDP in evaluation.Medium

Hard — Structured IB Questions

• 13Calculating GDP from expenditure componentsCompute output from consumption, investment, government and net exports.ApplicationA routinely examined quantitative task.Hard
• 14Converting nominal to real GDPDeflate a nominal series using a price index.ApplicationA core HL calculation examiners set repeatedly.Hard
• 15Calculating growth rates from dataCompute percentage change and interpret its significance.ApplicationTurns raw data into an economic conclusion.Hard
• 16Analysing an economy's position in the business cycleUse output, unemployment and inflation data together.ApplicationThe diagnostic task preceding any policy recommendation.Hard
• 17Evaluating GDP as an indicator of living standardsAssess distribution, informal activity and environmental damage.ApplicationA required evaluation in every measurement question.Hard
• 18Analysing GDP per capita against total GDPExplain divergence when population growth is rapid.ApplicationExplains why fast-growing economies can stagnate per person.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated assessment of economic performanceCombine growth, employment, inflation and distribution evidence.ApplicationThe complete structure for a performance question.Very Hard
• 20Evaluating alternative indicators against GDPAssess composite measures on coverage and comparability.ApplicationRequires balance rather than dismissal of GDP.Very Hard
• 21Assessing measurement problems in developing economiesEvaluate informal sectors and weak statistical capacity.ApplicationConnects measurement to development analysis in 4.8.Very Hard
• 22Evaluating green accounting adjustmentsAssess deducting resource depletion from national income.ApplicationConnects measurement to sustainability in 4.7.Very Hard
• 23Assessing the business cycle and policy timingEvaluate the difficulty of identifying turning points in real time.ApplicationExplains why stabilisation policy is often mistimed.Very Hard
• 24Synthesis: measurement, growth and living standardsIntegrate output, income and welfare into one framework.ApplicationA capstone model for the whole of Chapter 3.Very Hard

Easy — Foundations

• 1Aggregate demand definedDescribe total planned spending on domestic output at each price level.ApplicationThe demand side of every macroeconomic diagram.Easy
• 2Components of aggregate demandIdentify consumption, investment, government spending and net exports.ApplicationThe structure used to analyse any demand shock.Easy
• 3Why aggregate demand slopes downwardExplain wealth, interest rate and international trade effects.ApplicationDistinguishes the macro curve from a market demand curve.Easy
• 4Determinants of consumptionExplain income, confidence, interest rates and wealth effects.ApplicationThe largest and most examined component of demand.Easy
• 5Determinants of investmentExplain interest rates, expectations, technology and business confidence.ApplicationThe most volatile component of aggregate demand.Easy
• 6Determinants of government spending and net exportsExplain fiscal choices, exchange rates and foreign income.ApplicationCompletes the analysis of demand determinants.Easy

Medium — Applications

• 7Short-run aggregate supplyDescribe output supplied when factor prices are fixed.ApplicationExplains the inflation and output trade-off in the short run.Medium
• 8Determinants of short-run aggregate supplyExplain wage costs, raw material prices and indirect taxes.ApplicationExplains cost-push shocks to the economy.Medium
• 9The monetarist long-run aggregate supply curveDescribe vertical supply at the full employment level.ApplicationExplains why demand policy affects only prices in the long run.Medium
• 10The Keynesian aggregate supply curveDescribe the three-section curve with spare capacity.ApplicationExplains why demand policy works below full employment.Medium
• 11Determinants of long-run productive capacityExplain quantity and quality of factors and technology.ApplicationLinks macro supply to supply-side policy in 3.7.Medium
• 12Macroeconomic equilibriumDescribe the price level and output where demand meets supply.ApplicationThe outcome every macro diagram is drawn to find.Medium

Hard — Structured IB Questions

• 13Drawing and labelling aggregate demand and supply diagramsConstruct accurate monetarist and Keynesian diagrams.ApplicationThe most heavily weighted macro diagram skill.Hard
• 14Analysing a demand-side shockTrace the effect of a fall in confidence on output and prices.ApplicationThe standard applied task in macro questions.Hard
• 15Analysing a supply-side shockTrace the effect of an oil price rise on output and prices.ApplicationExplains stagflation using the model.Hard
• 16Analysing deflationary and inflationary gapsIdentify the gap between equilibrium and full employment output.ApplicationThe diagnostic step before recommending policy.Hard
• 17Comparing monetarist and Keynesian predictionsContrast the outcomes of a demand expansion in each model.ApplicationExplains genuine disagreement over stimulus policy.Hard
• 18Analysing the effect of investment on both curvesExplain short-run demand and long-run capacity effects.ApplicationA sophisticated point examiners reward highly.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated macroeconomic analysisCombine diagram, mechanism and outcome in one explanation.ApplicationThe complete structure for a macro question.Very Hard
• 20Evaluating the Keynesian model against the monetarist modelAssess evidence on wage flexibility and self-correction.ApplicationThe central theoretical evaluation in macroeconomics.Very Hard
• 21Assessing the speed of automatic adjustmentEvaluate how quickly an economy returns to full employment.ApplicationDetermines whether intervention is necessary.Very Hard
• 22Evaluating the model's treatment of expectationsAssess how anticipation alters policy effectiveness.ApplicationExplains why announced policy can fail.Very Hard
• 23Assessing aggregate supply and sustainabilityEvaluate capacity growth that depletes natural resources.ApplicationConnects macro capacity to sustainable development.Very Hard
• 24Synthesis: demand, supply and macroeconomic outcomesIntegrate shocks, adjustment and equilibrium into one model.ApplicationA capstone framework for all policy analysis.Very Hard

Easy — Foundations

• 1Economic growth definedDescribe increases in real output over time.ApplicationThe first of the major macroeconomic objectives.Easy
• 2Actual and potential growthDistinguish using spare capacity from expanding capacity.ApplicationDetermines which type of policy is appropriate.Easy
• 3Consequences of economic growthExplain effects on incomes, employment, inflation and environment.ApplicationPrevents treating growth as unambiguously good.Easy
• 4Unemployment defined and measuredDescribe those willing and able to work without a job.ApplicationThe second major macroeconomic objective.Easy
• 5Types of unemploymentIdentify structural, frictional, seasonal and cyclical unemployment.ApplicationDetermines which policy will actually reduce it.Easy
• 6Consequences of unemploymentExplain lost output, fiscal cost and social effects.ApplicationJustifies employment as a policy priority.Easy

Medium — Applications

• 7Inflation defined and measuredDescribe a sustained rise in the general price level.ApplicationThe third major macroeconomic objective.Medium
• 8Demand-pull and cost-push inflationDistinguish the two causes using the macro model.ApplicationDetermines which policy response is appropriate.Medium
• 9Consequences of inflation and deflationExplain effects on savers, competitiveness and expectations.ApplicationExplains why both extremes are undesirable.Medium
• 10Sustainable government debtDescribe debt levels an economy can service over time.ApplicationThe fourth objective added in the current syllabus.Medium
• 11Measuring debt and deficitsDistinguish the annual deficit from accumulated debt.ApplicationPrevents a frequently penalised conceptual error.Medium
• 12Conflicts between macroeconomic objectivesExplain trade-offs between growth, inflation and debt.ApplicationThe central evaluative theme of Chapter 3.Medium

Hard — Structured IB Questions

• 13Calculating unemployment and inflation ratesCompute rates from labour force and price index data.ApplicationA regularly examined quantitative task.Hard
• 14Interpreting a consumer price indexExplain weighting, base year and index construction.ApplicationEssential for handling inflation data correctly.Hard
• 15Diagnosing the type of unemployment from evidenceClassify unemployment using the described circumstances.ApplicationDirects policy at the actual cause.Hard
• 16Analysing the Phillips curve relationshipExplain the short-run trade-off between inflation and unemployment.ApplicationThe classic illustration of conflicting objectives.Hard
• 17Analysing the long-run Phillips curveExplain the natural rate and the failure of the trade-off.ApplicationExplains the shift away from demand-side fine tuning.Hard
• 18Evaluating growth against environmental limitsAssess output expansion alongside emission and resource constraints.ApplicationA contemporary conflict between objectives examiners reward.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated evaluation of objectivesCombine measurement, conflicts and priorities in one answer.ApplicationThe complete structure for an objectives question.Very Hard
• 20Evaluating the measurement of unemploymentAssess hidden unemployment, underemployment and participation.ApplicationA required critique of official statistics.Very Hard
• 21Assessing the costs of inflation against unemploymentEvaluate which objective should take priority.ApplicationThe central policy judgement in macroeconomics.Very Hard
• 22Evaluating debt sustainability for a specific economyAssess debt ratios, growth and interest rates together.ApplicationA contemporary application using real data.Very Hard
• 23Assessing objectives in a developing economy contextEvaluate differing priorities where incomes are low.ApplicationConnects Chapter 3 to development in Chapter 4.Very Hard
• 24Synthesis: objectives, conflicts and policy prioritiesIntegrate the four goals and their tensions into one framework.ApplicationA capstone model for every policy evaluation.Very Hard

Easy — Foundations

• 1Absolute povertyDescribe income below a level needed for basic necessities.ApplicationThe measure used for international poverty comparisons.Easy
• 2Relative povertyDescribe income below a proportion of the national median.ApplicationThe measure used in higher-income economies.Easy
• 3The international poverty lineDescribe the threshold used to measure extreme poverty.ApplicationEnables comparison of deprivation across countries.Easy
• 4Measuring poverty with multiple indicatorsDescribe composite measures covering health and education.ApplicationRecognises poverty as more than low income.Easy
• 5Causes of povertyIdentify unemployment, low pay, ill health and lack of education.ApplicationThe explanatory list for poverty questions.Easy
• 6Causes of income inequalityIdentify skills, capital ownership, discrimination and inheritance.ApplicationDistinguishes distributional causes from poverty causes.Easy

Medium — Applications

• 7The Lorenz curve and Gini coefficient in macro contextInterpret inequality measures across whole economies.ApplicationProvides the quantitative basis for policy evaluation.Medium
• 8Progressive, proportional and regressive taxationDistinguish how each affects the distribution of income.ApplicationThe main fiscal instrument for redistribution.Medium
• 9Direct and indirect taxes and equityExplain the differing distributional effects of each.ApplicationExplains why the tax mix matters for inequality.Medium
• 10Transfer paymentsDescribe cash benefits redistributing income to households.ApplicationThe most direct redistributive policy instrument.Medium
• 11Provision of essential servicesExplain how free education and healthcare reduce effective inequality.ApplicationExplains redistribution in kind rather than in cash.Medium
• 12Universal basic incomeDescribe an unconditional payment to all citizens.ApplicationA contemporary policy proposal examiners now expect.Medium

Hard — Structured IB Questions

• 13Calculating poverty and inequality measuresCompute headcount ratios and Gini values from data.ApplicationA regularly examined quantitative task.Hard
• 14Analysing the distributional effect of a tax changeDetermine whether a reform is progressive or regressive.ApplicationThe core applied task in this topic.Hard
• 15Analysing the poverty cycleExplain self-reinforcing low income, low saving and low investment.ApplicationThe central model of persistent deprivation.Hard
• 16Evaluating progressive taxationAssess redistribution against incentives and avoidance.ApplicationThe efficiency and equity trade-off in practice.Hard
• 17Analysing transfer payments and work incentivesEvaluate benefit withdrawal rates and effective marginal tax.ApplicationExplains the poverty trap in welfare systems.Hard
• 18Evaluating universal basic incomeAssess cost, simplicity, incentives and political feasibility.ApplicationA demanding contemporary evaluation.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated anti-poverty strategyCombine tax, transfer and service provision in one plan.ApplicationThe complete structure for a redistribution question.Very Hard
• 20Evaluating the limitations of poverty measuresAssess thresholds, price differences and non-income deprivation.ApplicationA required critique of any poverty statistic.Very Hard
• 21Assessing inequality and macroeconomic performanceEvaluate effects on demand, stability and growth.ApplicationConnects distribution to the wider economy.Very Hard
• 22Evaluating redistribution against economic growthJudge whether equity policies reduce output over time.ApplicationThe central evaluation in redistribution questions.Very Hard
• 23Assessing poverty reduction in developing economiesEvaluate constraints on redistribution with weak tax capacity.ApplicationConnects 3.4 to development strategy in 4.10.Very Hard
• 24Synthesis: poverty, distribution and policy effectivenessIntegrate measurement, causes and policy into one framework.ApplicationA capstone model for distributional analysis.Very Hard

Easy — Foundations

• 1Aims of monetary policyIdentify price stability, growth and employment objectives.ApplicationEstablishes what monetary policy is trying to achieve.Easy
• 2The role of the central bankDescribe independence, mandate and policy responsibility.ApplicationExplains who actually sets interest rates.Easy
• 3Interest rates as a policy toolExplain the policy rate influencing borrowing and saving.ApplicationThe primary instrument of modern monetary policy.Easy
• 4The monetary transmission mechanismExplain the chain from policy rate to aggregate demand.ApplicationThe mechanism every monetary answer must trace.Easy
• 5Expansionary monetary policyExplain lower rates raising consumption and investment.ApplicationThe standard response to a deflationary gap.Easy
• 6Contractionary monetary policyExplain higher rates reducing spending and inflation.ApplicationThe standard response to an inflationary gap.Easy

Medium — Applications

• 7Inflation targetingDescribe a published target guiding central bank decisions.ApplicationExplains the framework used by most central banks.Medium
• 8Minimum reserve requirementsDescribe rules on the reserves banks must hold.ApplicationA less used but examinable monetary tool.Medium
• 9Open market operationsDescribe buying and selling government bonds to change liquidity.ApplicationExplains how the policy rate is actually implemented.Medium
• 10Quantitative easingDescribe large-scale asset purchases when rates are near zero.ApplicationExplains policy after the global financial crisis.Medium
• 11The liquidity trapExplain the failure of rate cuts at very low interest rates.ApplicationThe key limitation of conventional monetary policy.Medium
• 12Monetary policy and exchange ratesExplain how rate changes affect currency demand.ApplicationConnects monetary policy to Chapter 4.Medium

Hard — Structured IB Questions

• 13Analysing an interest rate change using the macro modelTrace the effect through demand to output and prices.ApplicationThe core applied task in monetary questions.Hard
• 14Analysing monetary policy in a Keynesian and monetarist modelCompare the predicted outcomes in each framework.ApplicationExplains disagreement over monetary effectiveness.Hard
• 15Analysing time lags in monetary policyExplain recognition, implementation and effect lags.ApplicationExplains why policy can worsen the cycle.Hard
• 16Evaluating monetary policy effectiveness in a recessionAssess confidence, credit conditions and the zero bound.ApplicationExplains the limits of rate cuts in a slump.Hard
• 17Analysing quantitative easing outcomesEvaluate effects on asset prices, lending and inequality.ApplicationA contemporary application examiners reward.Hard
• 18Evaluating central bank independenceAssess credibility against democratic accountability.ApplicationA high-level institutional evaluation.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated monetary policy evaluationCombine mechanism, diagram, lags and limitations.ApplicationThe complete structure for a monetary question.Very Hard
• 20Evaluating monetary against fiscal policyAssess speed, targeting and political constraints.ApplicationThe central comparison in demand management.Very Hard
• 21Assessing monetary policy and financial stabilityEvaluate low rates encouraging excessive risk-taking.ApplicationConnects monetary policy to moral hazard in 2.10.Very Hard
• 22Evaluating inflation targeting as a frameworkAssess its performance against supply-side shocks.ApplicationExplains difficulty in responding to cost-push inflation.Very Hard
• 23Assessing monetary policy in developing economiesEvaluate weak transmission and dollarisation constraints.ApplicationConnects 3.5 to development obstacles in 4.9.Very Hard
• 24Synthesis: monetary policy, credibility and stabilisationIntegrate tools, mechanism and limitations into one framework.ApplicationA capstone model for demand management.Very Hard

Easy — Foundations

• 1Aims of fiscal policyIdentify demand management, redistribution and provision objectives.ApplicationEstablishes the multiple purposes of the budget.Easy
• 2Government revenue sourcesIdentify direct taxes, indirect taxes and other receipts.ApplicationThe income side of the government budget.Easy
• 3Government expenditure categoriesIdentify current spending, capital spending and transfers.ApplicationThe spending side of the government budget.Easy
• 4Budget deficits and surplusesExplain the relationship between revenue and expenditure.ApplicationThe headline indicator of the fiscal stance.Easy
• 5Expansionary fiscal policyExplain higher spending or lower taxes raising demand.ApplicationThe standard response to a deflationary gap.Easy
• 6Contractionary fiscal policyExplain lower spending or higher taxes reducing demand.ApplicationThe standard response to an inflationary gap.Easy

Medium — Applications

• 7Automatic stabilisersDescribe tax and benefit changes that occur without new decisions.ApplicationExplains built-in dampening of the business cycle.Medium
• 8The Keynesian multiplierExplain an initial injection producing a larger income change.ApplicationThe core mechanism amplifying fiscal policy.Medium
• 9Calculating the multiplierCompute the multiplier from marginal propensities.ApplicationA core HL quantitative task.Medium
• 10Marginal propensities to consume, save, tax and importDefine each and explain its effect on the multiplier.ApplicationDetermines the size of any fiscal impact.Medium
• 11Crowding outExplain government borrowing raising interest rates and reducing investment.ApplicationThe main criticism of expansionary fiscal policy.Medium
• 12Fiscal policy and long-run capacityExplain infrastructure and education spending raising potential output.ApplicationLinks fiscal policy to supply-side effects in 3.7.Medium

Hard — Structured IB Questions

• 13Calculating the effect of a fiscal injectionApply the multiplier to compute the change in income.ApplicationThe applied calculation examined most often.Hard
• 14Analysing a fiscal expansion using the macro modelTrace the shift in demand to output and prices.ApplicationThe core applied task in fiscal questions.Hard
• 15Analysing the effect of the multiplier sizeExplain how leakages reduce fiscal effectiveness.ApplicationExplains why identical policies have different effects.Hard
• 16Analysing time lags in fiscal policyExplain political, implementation and effect lags.ApplicationExplains mistimed stimulus arriving after recovery.Hard
• 17Evaluating fiscal policy in a recessionAssess multiplier size, debt cost and confidence effects.ApplicationThe central evaluation in fiscal questions.Hard
• 18Analysing debt sustainability after fiscal expansionEvaluate debt ratios given growth and interest rates.ApplicationConnects fiscal policy to the debt objective in 3.3.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated fiscal policy evaluationCombine mechanism, multiplier, diagram and limitations.ApplicationThe complete structure for a fiscal question.Very Hard
• 20Evaluating crowding out evidenceAssess whether it occurs when there is spare capacity.ApplicationPrevents mechanical repetition of the criticism.Very Hard
• 21Assessing austerity policiesEvaluate deficit reduction against output and employment costs.ApplicationA contested contemporary policy debate.Very Hard
• 22Evaluating fiscal policy and income distributionAssess how tax and spending choices alter inequality.ApplicationConnects 3.6 directly to redistribution in 3.4.Very Hard
• 23Assessing fiscal space in developing economiesEvaluate constraints from narrow tax bases and debt costs.ApplicationConnects 3.6 to development finance in 4.10.Very Hard
• 24Synthesis: fiscal policy, multipliers and sustainabilityIntegrate tools, mechanism and constraints into one framework.ApplicationA capstone model for government demand management.Very Hard

Easy — Foundations

• 1Supply-side policy definedDescribe policies raising the productive potential of an economy.ApplicationTargets long-run capacity rather than short-run demand.Easy
• 2Market-based supply-side policiesIdentify deregulation, privatisation and labour market flexibility.ApplicationThe intervention-reducing approach to capacity.Easy
• 3Interventionist supply-side policiesIdentify education, infrastructure and research spending.ApplicationThe government-led approach to capacity.Easy
• 4Labour market reformsExplain reduced union power, flexible contracts and lower benefits.ApplicationExplains employment effects of deregulation.Easy
• 5Incentive-related tax reformsExplain lower income and corporate tax rates raising effort and investment.ApplicationThe core market-based supply-side argument.Easy
• 6Education and training policyExplain human capital investment raising productivity.ApplicationThe most widely supported interventionist policy.Easy

Medium — Applications

• 7Infrastructure investmentExplain transport, energy and communications raising capacity.ApplicationExplains the long-run return on public capital.Medium
• 8Research and development supportExplain subsidies and tax credits raising innovation.ApplicationConnects supply-side policy to positive externalities.Medium
• 9Competition and deregulation policyExplain lower barriers raising efficiency and entry.ApplicationLinks supply-side policy to market structures in 2.11.Medium
• 10PrivatisationExplain transferring state assets to private ownership.ApplicationA contested market-based supply-side measure.Medium
• 11Supply-side policy in the macro modelShow a rightward shift of long-run aggregate supply.ApplicationThe diagram every supply-side answer requires.Medium
• 12Supply-side policy and other objectivesExplain simultaneous effects on growth, inflation and employment.ApplicationThe strongest argument in favour of supply-side policy.Medium

Hard — Structured IB Questions

• 13Analysing a supply-side policy using the macro modelTrace capacity expansion to output and price outcomes.ApplicationThe core applied task in this topic.Hard
• 14Analysing supply-side and demand-side effects togetherExplain how investment shifts both curves.ApplicationA sophisticated point examiners reward highly.Hard
• 15Analysing time lags in supply-side policyExplain the long delay before capacity effects appear.ApplicationThe main practical limitation of these policies.Hard
• 16Evaluating market-based against interventionist policiesCompare effectiveness, cost and distributional effects.ApplicationThe central evaluation in supply-side questions.Hard
• 17Analysing the opportunity cost of supply-side spendingEvaluate the fiscal cost against alternative uses.ApplicationConnects supply-side policy to the budget constraint.Hard
• 18Evaluating labour market flexibilityAssess employment gains against job security and inequality.ApplicationA contested policy with clear distributional effects.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated supply-side evaluationCombine diagram, mechanism, timescale and cost.ApplicationThe complete structure for a supply-side question.Very Hard
• 20Evaluating supply-side policy effectiveness evidenceAssess mixed empirical results on productivity growth.ApplicationPrevents uncritical acceptance of theoretical claims.Very Hard
• 21Assessing supply-side policy and inequalityEvaluate distributional consequences of deregulation and tax cuts.ApplicationConnects 3.7 to equity analysis in 3.4.Very Hard
• 22Evaluating supply-side policy against demand managementJudge which approach suits a specific economic problem.ApplicationThe complete policy comparison examiners expect.Very Hard
• 23Assessing supply-side policy and environmental sustainabilityEvaluate capacity growth against resource and emission limits.ApplicationConnects long-run growth to sustainability in 4.7.Very Hard
• 24Synthesis: capacity, productivity and long-run performanceIntegrate policy, mechanism and constraints into one framework.ApplicationA capstone model closing the whole of Chapter 3.Very Hard

Easy — Foundations

• 1International trade definedDescribe the exchange of goods and services across borders.ApplicationThe starting point for the whole of Chapter 4.Easy
• 2Specialisation between countriesExplain concentrating production where a country is most efficient.ApplicationThe source of the gains from trade.Easy
• 3Absolute advantageDescribe producing more output with the same resources.ApplicationThe simplest explanation of why trade occurs.Easy
• 4Comparative advantageDescribe a lower opportunity cost of producing a good.ApplicationThe rigorous explanation of the gains from trade.Easy
• 5Opportunity cost ratios in tradeCalculate the cost of one good in terms of another.ApplicationThe calculation underlying comparative advantage.Easy
• 6Terms of tradeDescribe the ratio of export prices to import prices.ApplicationDetermines how the gains from trade are shared.Easy

Medium — Applications

• 7Benefits of free tradeIdentify lower prices, greater choice and efficiency gains.ApplicationThe core case in favour of open markets.Medium
• 8Trade and economies of scaleExplain larger markets lowering average costs.ApplicationA dynamic gain beyond static comparative advantage.Medium
• 9Trade and competitionExplain how imports discipline domestic market power.ApplicationConnects trade theory to market structures in 2.11.Medium
• 10Trade and technology transferExplain how trade spreads production knowledge.ApplicationA long-run growth benefit of openness.Medium
• 11Assumptions of comparative advantageIdentify constant costs, no transport cost and factor immobility.ApplicationThe basis of every critique of the theory.Medium
• 12Winners and losers from tradeExplain gains for consumers alongside losses for some producers.ApplicationExplains political resistance to trade liberalisation.Medium

Hard — Structured IB Questions

• 13Calculating comparative advantage from dataDetermine which country should specialise in which good.ApplicationA routinely examined HL quantitative task.Hard
• 14Constructing a production possibilities analysis of tradeShow gains using pre-trade and post-trade combinations.ApplicationDemonstrates the gains rather than asserting them.Hard
• 15Analysing the terms of trade for a countryCalculate the index and interpret improvement or deterioration.ApplicationLinks trade theory to national income effects.Hard
• 16Analysing the distributional effects of tradeExplain which sectors and workers gain and lose.ApplicationExplains support for and opposition to trade deals.Hard
• 17Evaluating the assumptions of comparative advantageAssess transport costs, increasing costs and immobility.ApplicationThe required critique in every trade theory question.Hard
• 18Analysing trade and structural changeExplain the reallocation of resources following liberalisation.ApplicationExplains adjustment costs and regional decline.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated evaluation of free tradeCombine gains, losses and adjustment costs in one answer.ApplicationThe complete structure for a trade question.Very Hard
• 20Evaluating free trade for developing economiesAssess commodity dependence and terms of trade decline.ApplicationConnects trade theory to development in 4.9.Very Hard
• 21Assessing trade and environmental consequencesEvaluate transport emissions and production relocation.ApplicationAdds the sustainability dimension examiners expect.Very Hard
• 22Evaluating trade and employment effectsAssess job creation against displacement in import-competing sectors.ApplicationThe central political argument about trade.Very Hard
• 23Assessing global supply chains and vulnerabilityEvaluate efficiency gains against disruption risk.ApplicationA contemporary application examiners now expect.Very Hard
• 24Synthesis: specialisation, exchange and global welfareIntegrate advantage, gains and distribution into one framework.ApplicationA capstone model for the whole of Chapter 4.Very Hard

Easy — Foundations

• 1Trade protection definedDescribe measures restricting imports to favour domestic producers.ApplicationThe policy set analysed throughout this topic.Easy
• 2TariffsDescribe a tax placed on imported goods.ApplicationThe most common and most examined trade barrier.Easy
• 3The tariff diagramShow domestic and world price, quantities and welfare areas.ApplicationThe diagram examined most often in Chapter 4.Easy
• 4Effects of a tariff on stakeholdersIdentify producer gain, consumer loss and government revenue.ApplicationThe structure for every tariff evaluation.Easy
• 5Import quotasDescribe a physical limit on the quantity imported.ApplicationA restriction operating on volume rather than price.Easy
• 6The quota diagramShow restricted imports, price rise and the absence of tariff revenue.ApplicationDistinguishes quota effects from tariff effects.Easy

Medium — Applications

• 7Export subsidiesDescribe payments enabling producers to sell abroad more cheaply.ApplicationExplains disputes over agricultural trade.Medium
• 8The export subsidy diagramShow increased domestic production and government cost.ApplicationCompletes the diagram set for trade barriers.Medium
• 9Administrative barriersDescribe standards, licensing and customs procedures restricting trade.ApplicationExplains protection that is difficult to measure or challenge.Medium
• 10Non-tariff barriers in practiceIdentify health, safety and environmental standards used protectively.ApplicationExplains modern protection despite falling tariffs.Medium
• 11Exchange rate manipulation as protectionExplain currency undervaluation supporting exports.ApplicationConnects trade policy to exchange rates in 4.5.Medium
• 12Welfare loss from protectionIdentify production and consumption efficiency losses.ApplicationQuantifies the cost of trade barriers.Medium

Hard — Structured IB Questions

• 13Calculating welfare effects of a tariffCompute consumer loss, producer gain, revenue and deadweight loss.ApplicationA central HL Paper 3 quantitative task.Hard
• 14Calculating the effects of a quotaCompute price, quantity and the distribution of the quota rent.ApplicationThe parallel calculation for volume restrictions.Hard
• 15Analysing tariff effects on stakeholdersExplain gains and losses for each affected group.ApplicationThe core applied task in this topic.Hard
• 16Comparing tariffs with quotasAnalyse revenue, transparency and administrative differences.ApplicationA frequently set comparison question.Hard
• 17Analysing export subsidies and world pricesExplain the effect on producers in other countries.ApplicationExplains developing country complaints about agriculture.Hard
• 18Evaluating administrative barriersAssess legitimate standards against disguised protection.ApplicationRequires judgement rather than description.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated analysis of a trade barrierCombine diagram, calculation and stakeholder effects.ApplicationThe complete structure for a protection question.Very Hard
• 20Evaluating the welfare cost of protectionAssess deadweight loss against distributional objectives.ApplicationThe efficiency and equity trade-off in trade policy.Very Hard
• 21Assessing retaliation and trade warsEvaluate the escalation risk of imposing barriers.ApplicationExplains outcomes worse than the original problem.Very Hard
• 22Evaluating protection in developing economiesAssess infant industry arguments against efficiency costs.ApplicationConnects trade policy to development strategy in 4.10.Very Hard
• 23Assessing the political economy of protectionEvaluate concentrated benefits against dispersed costs.ApplicationExplains why inefficient protection persists.Very Hard
• 24Synthesis: barriers, welfare and trade policyIntegrate instruments, effects and evaluation into one framework.ApplicationA capstone model for trade policy questions.Very Hard

Easy — Foundations

• 1The infant industry argumentExplain temporary protection while an industry develops.ApplicationThe strongest theoretical case for protection.Easy
• 2Protecting employmentExplain barriers used to preserve jobs in declining sectors.ApplicationThe most politically powerful protection argument.Easy
• 3Strategic industry protectionExplain safeguarding sectors essential to national security.ApplicationExplains protection of food, energy and defence.Easy
• 4Diversification of the economyExplain protection reducing dependence on a few exports.ApplicationA central development argument for protection.Easy
• 5Protection against dumpingExplain barriers against goods sold below cost.ApplicationThe main legally accepted reason for anti-dumping duties.Easy
• 6Government revenue from tariffsExplain tariffs as a revenue source for low-income states.ApplicationExplains reliance on trade taxes where administration is weak.Easy

Medium — Applications

• 7Correcting a current account deficitExplain protection reducing imports to improve the balance.ApplicationConnects trade policy to external balance in 4.6.Medium
• 8Arguments for freer tradeIdentify efficiency, choice, competition and growth benefits.ApplicationThe counterweight required in every evaluation.Medium
• 9Trade and consumer welfareExplain lower prices and greater variety from imports.ApplicationThe clearest gain from liberalisation.Medium
• 10Trade and productive efficiencyExplain competitive pressure reducing costs.ApplicationLinks trade openness to firm-level efficiency.Medium
• 11Costs of protection to producersExplain higher input costs for firms using imported components.ApplicationExplains business opposition to tariffs.Medium
• 12Protection and resource misallocationExplain resources retained in inefficient sectors.ApplicationThe core efficiency criticism of protection.Medium

Hard — Structured IB Questions

• 13Evaluating the infant industry argumentAssess selection difficulty and removal of protection later.ApplicationThe standard evaluation of the strongest case.Hard
• 14Analysing employment effects of protectionEvaluate jobs saved against jobs lost in other sectors.ApplicationPrevents one-sided employment arguments.Hard
• 15Evaluating anti-dumping measuresAssess genuine dumping against protectionist misuse.ApplicationRequires judgement about the evidence.Hard
• 16Analysing protection and consumer pricesQuantify the cost per job protected where data allows.ApplicationTurns a qualitative argument into a numerical one.Hard
• 17Evaluating protection against structural adjustment policiesCompare barriers with retraining and regional support.ApplicationRecommends alternatives rather than only criticising.Hard
• 18Analysing the long-run effects of protectionEvaluate innovation and competitiveness under shelter.ApplicationExplains long-run decline in protected industries.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated evaluation of protectionCombine arguments, counterarguments and evidence in one answer.ApplicationThe complete structure for a protection debate.Very Hard
• 20Evaluating free trade against managed tradeJudge whether openness should be qualified in some sectors.ApplicationA nuanced conclusion examiners reward highly.Very Hard
• 21Assessing protection and income distributionEvaluate which groups gain and lose within a country.ApplicationConnects trade policy to distribution in 3.4.Very Hard
• 22Evaluating trade policy and environmental standardsAssess barriers justified on environmental grounds.ApplicationA contemporary and contested application.Very Hard
• 23Assessing protection in the context of global value chainsEvaluate tariffs on intermediate goods in fragmented production.ApplicationExplains why modern tariffs harm domestic producers.Very Hard
• 24Synthesis: openness, protection and national interestIntegrate theory, evidence and distribution into one framework.ApplicationA capstone model for trade policy evaluation.Very Hard

Easy — Foundations

• 1Economic integration definedDescribe increasing economic linkage between countries.ApplicationThe organising concept for this topic.Easy
• 2Preferential trade agreementsDescribe reduced barriers between selected partners.ApplicationThe weakest form of formal integration.Easy
• 3Free trade areasDescribe removal of internal barriers with independent external tariffs.ApplicationExplains rules of origin requirements.Easy
• 4Customs unionsDescribe free internal trade plus a common external tariff.ApplicationDistinguishes deeper integration from a free trade area.Easy
• 5Common marketsDescribe free movement of goods, services, capital and labour.ApplicationExplains factor mobility within an integrated area.Easy
• 6Monetary unionsDescribe a shared currency and single monetary policy.ApplicationExplains the loss of independent interest rate policy.Easy

Medium — Applications

• 7Trade creationExplain new trade generated by removing internal barriers.ApplicationThe efficiency gain from integration.Medium
• 8Trade diversionExplain trade shifted from efficient outsiders to members.ApplicationThe efficiency loss from preferential arrangements.Medium
• 9Benefits of economic integrationIdentify market size, competition, investment and cooperation.ApplicationThe case in favour of joining a bloc.Medium
• 10Costs of economic integrationIdentify lost sovereignty, adjustment costs and asymmetric shocks.ApplicationThe counterweight required in evaluation.Medium
• 11The World Trade OrganizationDescribe its role in negotiating and enforcing trade rules.ApplicationThe institutional framework for global trade.Medium
• 12Dispute settlement and trade rulesDescribe how trade conflicts are formally resolved.ApplicationExplains constraints on unilateral protection.Medium

Hard — Structured IB Questions

• 13Analysing trade creation and diversionDetermine the net welfare effect of joining a bloc.ApplicationThe core applied task in this topic.Hard
• 14Analysing the effects of a common external tariffExplain consequences for members and non-members.ApplicationDistinguishes customs union effects precisely.Hard
• 15Analysing monetary union constraintsExplain the loss of exchange rate and interest rate policy.ApplicationExplains adjustment difficulties within a currency area.Hard
• 16Evaluating the case for joining a trading blocAssess market access against sovereignty and adjustment.ApplicationA frequently set evaluation question.Hard
• 17Analysing integration and factor mobilityEvaluate labour and capital movement between members.ApplicationExplains migration and investment flows within blocs.Hard
• 18Evaluating the effectiveness of the World Trade OrganizationAssess enforcement, membership and stalled negotiations.ApplicationA contemporary institutional evaluation.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated evaluation of integrationCombine creation, diversion, sovereignty and adjustment.ApplicationThe complete structure for an integration question.Very Hard
• 20Evaluating regional integration against multilateral tradeJudge whether blocs help or hinder global liberalisation.ApplicationA high-level conceptual conclusion.Very Hard
• 21Assessing integration and developing economiesEvaluate regional blocs among lower-income countries.ApplicationConnects integration to development in 4.10.Very Hard
• 22Evaluating asymmetric shocks in a monetary unionAssess adjustment when members face different conditions.ApplicationExplains crises within currency areas.Very Hard
• 23Assessing integration and income convergenceEvaluate whether membership narrows income differences.ApplicationA measurable long-run test of integration benefits.Very Hard
• 24Synthesis: integration, trade diversion and welfareIntegrate forms, effects and evaluation into one framework.ApplicationA capstone model for regional economics.Very Hard

Easy — Foundations

• 1Exchange rate definedDescribe the price of one currency in terms of another.ApplicationThe link between domestic and international prices.Easy
• 2The foreign exchange marketDescribe demand and supply determining a floating rate.ApplicationThe model underlying every exchange rate diagram.Easy
• 3Appreciation and depreciationDistinguish rises and falls in a floating currency value.ApplicationThe correct terminology for floating systems.Easy
• 4Revaluation and devaluationDistinguish deliberate changes in a fixed rate.ApplicationPrevents a frequently penalised terminology error.Easy
• 5Determinants of currency demandExplain exports, investment inflows and speculation.ApplicationThe demand side of the exchange rate diagram.Easy
• 6Determinants of currency supplyExplain imports, investment outflows and speculation.ApplicationThe supply side of the exchange rate diagram.Easy

Medium — Applications

• 7Floating exchange rate systemsDescribe rates determined entirely by market forces.ApplicationExplains automatic external adjustment.Medium
• 8Fixed exchange rate systemsDescribe rates maintained by central bank intervention.ApplicationExplains the use of reserves and interest rates.Medium
• 9Managed exchange rate systemsDescribe intervention within a floating framework.ApplicationDescribes the system most countries actually use.Medium
• 10Effects of depreciation on the economyExplain export competitiveness, import prices and inflation.ApplicationThe core transmission mechanism examined here.Medium
• 11Effects of appreciation on the economyExplain cheaper imports and reduced export competitiveness.ApplicationThe mirror analysis for a rising currency.Medium
• 12Exchange rates and monetary policyExplain how interest rate changes move the currency.ApplicationConnects Chapter 4 directly to monetary policy in 3.5.Medium

Hard — Structured IB Questions

• 13Drawing and analysing exchange rate diagramsConstruct the market diagram and shift the correct curve.ApplicationThe essential diagram skill in this topic.Hard
• 14Calculating exchange rate conversionsConvert values between currencies accurately.ApplicationA routinely examined quantitative task.Hard
• 15Analysing the causes of a currency movementIdentify the determinant responsible from case evidence.ApplicationThe core applied task in exchange rate questions.Hard
• 16Analysing depreciation and the trade balanceExplain the effect on export and import values.ApplicationSets up the Marshall-Lerner analysis in 4.6.Hard
• 17Evaluating fixed against floating exchange ratesAssess stability, policy independence and reserve requirements.ApplicationThe central evaluation in this topic.Hard
• 18Analysing central bank interventionEvaluate reserve use and interest rate defence of a currency.ApplicationExplains currency crises and reserve depletion.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated exchange rate analysisCombine diagram, mechanism and macroeconomic consequences.ApplicationThe complete structure for an exchange rate question.Very Hard
• 20Evaluating depreciation as a policy toolAssess competitiveness gains against imported inflation.ApplicationA frequently set policy evaluation.Very Hard
• 21Assessing exchange rate volatility and investmentEvaluate uncertainty effects on trade and capital flows.ApplicationThe main argument for managed or fixed systems.Very Hard
• 22Evaluating currency undervaluation strategiesAssess export-led growth against trading partner retaliation.ApplicationConnects exchange rates to trade policy in 4.2.Very Hard
• 23Assessing exchange rates in developing economiesEvaluate constraints from debt denominated in foreign currency.ApplicationConnects 4.5 to development obstacles in 4.9.Very Hard
• 24Synthesis: exchange rates, competitiveness and adjustmentIntegrate determination, systems and effects into one framework.ApplicationA capstone model for open economy macroeconomics.Very Hard

Easy — Foundations

• 1The balance of payments definedDescribe the record of all transactions with the rest of the world.ApplicationThe accounting framework for external economic relations.Easy
• 2The current accountIdentify trade in goods, trade in services, income and transfers.ApplicationThe account examined most often in this topic.Easy
• 3The balance of trade in goods and servicesCalculate exports less imports for each category.ApplicationThe largest component of most current accounts.Easy
• 4Primary and secondary incomeDistinguish factor income flows from transfers.ApplicationCompletes the structure of the current account.Easy
• 5The capital accountDescribe transfers of capital and non-produced assets.ApplicationThe smallest but examinable account.Easy
• 6The financial accountIdentify direct investment, portfolio investment and reserve assets.ApplicationRecords how a current account balance is financed.Easy

Medium — Applications

• 7The balance of payments identityExplain why the accounts must sum to zero.ApplicationThe relationship linking the accounts together.Medium
• 8Causes of a current account deficitExplain competitiveness, exchange rates, income and structural factors.ApplicationThe diagnostic list for a deficit question.Medium
• 9Consequences of a persistent deficitExplain debt accumulation, currency pressure and reduced demand.ApplicationExplains why persistent deficits matter.Medium
• 10Causes and consequences of a current account surplusExplain undervaluation, low demand and partner tension.ApplicationPrevents assuming surpluses are automatically desirable.Medium
• 11The Marshall-Lerner conditionState that elasticities must sum above one for depreciation to work.ApplicationDetermines whether depreciation improves the balance.Medium
• 12The J-curve effectDescribe short-run deterioration before long-run improvement.ApplicationExplains why depreciation appears to fail initially.Medium

Hard — Structured IB Questions

• 13Calculating current account componentsCompute balances from supplied transaction data.ApplicationA routinely examined quantitative task.Hard
• 14Analysing the relationship between the accountsExplain how a current account deficit is financed.ApplicationThe core conceptual task in this topic.Hard
• 15Analysing depreciation using Marshall-LernerDetermine whether a depreciation improves the balance.ApplicationA central HL analytical application.Hard
• 16Analysing the J-curve using time series dataExplain the pattern of the trade balance after depreciation.ApplicationLinks theory to observed data.Hard
• 17Evaluating expenditure-switching policiesAssess depreciation and protection for correcting a deficit.ApplicationOne half of the standard correction toolkit.Hard
• 18Evaluating expenditure-reducing policiesAssess deflationary fiscal and monetary policy for a deficit.ApplicationThe other half, with clear output costs.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated deficit correction strategyCombine switching, reducing and supply-side measures.ApplicationThe complete structure for a balance of payments question.Very Hard
• 20Evaluating the sustainability of a current account deficitAssess financing, growth and debt composition.ApplicationDistinguishes a benign deficit from a dangerous one.Very Hard
• 21Assessing surpluses and global imbalancesEvaluate the international consequences of persistent surpluses.ApplicationExplains tension between major trading economies.Very Hard
• 22Evaluating supply-side correction of external imbalanceAssess competitiveness policies against short-run measures.ApplicationConnects 4.6 to supply-side policy in 3.7.Very Hard
• 23Assessing capital flows and financial stabilityEvaluate the risk of sudden reversals in portfolio investment.ApplicationExplains balance of payments crises.Very Hard
• 24Synthesis: external balance, adjustment and sustainabilityIntegrate accounts, causes and correction into one framework.ApplicationA capstone model for open economy analysis.Very Hard

Easy — Foundations

• 1Sustainable development definedDescribe meeting present needs without compromising future ones.ApplicationThe organising principle for this topic.Easy
• 2Economic growth and economic development distinguishedSeparate rising output from improving living standards.ApplicationThe central conceptual distinction in Chapter 4.Easy
• 3The Sustainable Development GoalsDescribe the international framework of development targets.ApplicationThe reference framework examiners expect to be cited.Easy
• 4Environmental sustainabilityExplain resource use within regenerative limits.ApplicationThe ecological dimension of sustainability.Easy
• 5Poverty and environmental degradationExplain how deprivation drives unsustainable resource use.ApplicationThe link between two apparently separate problems.Easy
• 6Renewable and non-renewable resourcesDistinguish resources by their capacity to regenerate.ApplicationDetermines whether current use can continue.Easy

Medium — Applications

• 7Climate change as an economic problemExplain emissions as a global negative externality.ApplicationConnects sustainability to market failure in 2.8.Medium
• 8Intergenerational equityExplain fairness between present and future generations.ApplicationThe normative basis of sustainability arguments.Medium
• 9Trade-offs between growth and sustainabilityExplain output expansion that depletes natural capital.ApplicationThe central tension in development policy.Medium
• 10Green growth and decouplingDescribe growth achieved with falling resource use.ApplicationThe optimistic response to the growth trade-off.Medium
• 11International agreements on sustainabilityDescribe climate accords and emissions commitments.ApplicationExplains the collective action framework.Medium
• 12Circular economy approachesDescribe designing out waste through reuse and recycling.ApplicationA contemporary policy direction examiners now expect.Medium

Hard — Structured IB Questions

• 13Analysing progress against the development goalsInterpret indicator data for a specific country.ApplicationThe applied task in sustainability questions.Hard
• 14Analysing the poverty and sustainability relationshipExplain the mechanisms linking deprivation and degradation.ApplicationConverts a stated link into genuine analysis.Hard
• 15Analysing climate change using externality theoryApply the market failure model to global emissions.ApplicationConnects Chapter 4 to Chapter 2 rigorously.Hard
• 16Evaluating growth against environmental objectivesAssess whether the two can be reconciled.ApplicationThe central evaluation in this topic.Hard
• 17Analysing the free-rider problem in climate policyExplain why international agreements are hard to enforce.ApplicationExplains slow global progress on emissions.Hard
• 18Evaluating carbon pricing for sustainabilityAssess taxes and permits against regulation.ApplicationApplies microeconomic policy tools to a global problem.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated sustainability evaluationCombine measurement, trade-offs and policy in one answer.ApplicationThe complete structure for a sustainability question.Very Hard
• 20Evaluating the decoupling hypothesisAssess evidence on growth without rising emissions.ApplicationPrevents uncritical acceptance of green growth claims.Very Hard
• 21Assessing the distribution of climate costsEvaluate burdens falling on low-income countries.ApplicationConnects sustainability to global equity.Very Hard
• 22Evaluating sustainability targets and enforcementAssess voluntary commitments against binding obligations.ApplicationA high-level institutional evaluation.Very Hard
• 23Assessing sustainability in development strategyEvaluate whether poorer economies can prioritise the environment.ApplicationThe central fairness argument in climate negotiations.Very Hard
• 24Synthesis: sustainability, equity and long-run developmentIntegrate environment, poverty and policy into one framework.ApplicationA capstone model for development economics.Very Hard

Easy — Foundations

• 1Economic development definedDescribe improvement in living standards and capabilities.ApplicationEstablishes what development indicators try to capture.Easy
• 2Single indicators of developmentIdentify income, health, education and infrastructure measures.ApplicationThe building blocks of development measurement.Easy
• 3Health indicatorsIdentify life expectancy, infant mortality and access to care.ApplicationMeasures the most fundamental dimension of welfare.Easy
• 4Education indicatorsIdentify literacy, enrolment and years of schooling.ApplicationMeasures human capital and future capacity.Easy
• 5Income indicatorsIdentify GNI per capita adjusted for purchasing power.ApplicationThe economic dimension of development measurement.Easy
• 6The Human Development IndexDescribe the composite of income, health and education.ApplicationThe most widely cited composite development measure.Easy

Medium — Applications

• 7Calculating the Human Development IndexCompute dimension indices and the overall value.ApplicationA regularly examined HL calculation.Medium
• 8Inequality-adjusted development measuresDescribe indices discounted for unequal distribution.ApplicationCorrects a major weakness of average measures.Medium
• 9The Multidimensional Poverty IndexDescribe deprivation measured across several dimensions.ApplicationCaptures poverty beyond low income.Medium
• 10Gender-related development measuresDescribe indices capturing gender inequality.ApplicationAdds a dimension averages conceal.Medium
• 11Happiness and well-being indicesDescribe subjective measures of life satisfaction.ApplicationProvides an alternative to objective indicators.Medium
• 12Limitations of composite indicatorsExplain weighting choices, data quality and omitted dimensions.ApplicationThe required critique of every composite measure.Medium

Hard — Structured IB Questions

• 13Interpreting development data for a countryAnalyse several indicators together to form a judgement.ApplicationThe core applied task in this topic.Hard
• 14Analysing divergence between income and other indicatorsExplain high income alongside poor health outcomes.ApplicationDemonstrates why income alone is inadequate.Hard
• 15Comparing countries using composite measuresEvaluate rankings and their sensitivity to weighting.ApplicationPrevents overconfident conclusions from a single index.Hard
• 16Analysing inequality-adjusted measuresExplain the fall in the index when distribution is unequal.ApplicationQuantifies the welfare cost of inequality.Hard
• 17Evaluating the Human Development IndexAssess coverage, weighting and omitted dimensions.ApplicationThe standard evaluation in this topic.Hard
• 18Analysing data reliability in developing economiesEvaluate informal activity and weak statistical capacity.ApplicationConnects measurement problems to development context.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated development assessmentCombine multiple indicators into one reasoned judgement.ApplicationThe complete structure for a measurement question.Very Hard
• 20Evaluating composite against single indicatorsJudge which approach better informs policy.ApplicationRequires balance rather than dismissal of either.Very Hard
• 21Assessing subjective well-being measuresEvaluate reliability and comparability across cultures.ApplicationA contemporary measurement debate.Very Hard
• 22Evaluating measurement and policy prioritiesAssess how indicator choice shapes government targets.ApplicationExplains why what is measured gets managed.Very Hard
• 23Assessing development measurement and sustainabilityEvaluate whether indicators capture environmental depletion.ApplicationConnects 4.8 directly to sustainability in 4.7.Very Hard
• 24Synthesis: measurement, comparison and development judgementIntegrate indicators, limitations and interpretation into one framework.ApplicationA capstone model for development analysis.Very Hard

Easy — Foundations

• 1The poverty trapExplain self-reinforcing low income, saving and investment.ApplicationThe central model of persistent underdevelopment.Easy
• 2Low levels of human capitalExplain how poor health and education limit productivity.ApplicationOne of the most binding development constraints.Easy
• 3Inadequate infrastructureExplain how transport and energy gaps raise costs.ApplicationExplains why investment fails to raise output.Easy
• 4Weak institutions and governanceExplain how corruption and weak rule of law deter investment.ApplicationAn increasingly emphasised development obstacle.Easy
• 5Insecure property rightsExplain how unclear ownership prevents investment and lending.ApplicationExplains underuse of land and informal assets.Easy
• 6Dependence on primary commoditiesExplain vulnerability to volatile export prices.ApplicationConnects development to elasticity analysis in 2.6.Easy

Medium — Applications

• 7Deteriorating terms of tradeExplain falling export prices relative to import prices.ApplicationExplains long-run pressure on commodity exporters.Medium
• 8Indebtedness and debt servicingExplain how repayments divert resources from development.ApplicationExplains constrained fiscal space in poor economies.Medium
• 9Capital flightExplain the outflow of domestic savings to other countries.ApplicationExplains investment shortages despite domestic saving.Medium
• 10Limited access to international marketsExplain barriers facing exports from developing economies.ApplicationConnects development obstacles to trade policy in 4.2.Medium
• 11Geographic and demographic constraintsExplain landlocked status, climate and rapid population growth.ApplicationExplains persistent disadvantage independent of policy.Medium
• 12Gender inequality as a development obstacleExplain lost productive capacity from excluded participation.ApplicationA measurable constraint on aggregate output.Medium

Hard — Structured IB Questions

• 13Diagnosing the binding constraint for an economyIdentify which obstacle most limits growth from evidence.ApplicationDirects policy at the actual constraint.Hard
• 14Analysing the poverty trap mechanismExplain each link in the self-reinforcing cycle.ApplicationConverts the model into applied analysis.Hard
• 15Analysing commodity dependence using elasticityExplain price volatility from inelastic supply and demand.ApplicationApplies microeconomic tools to a macro problem.Hard
• 16Analysing the effect of debt servicing on developmentQuantify resources diverted from health and education.ApplicationGrounds the argument in fiscal evidence.Hard
• 17Evaluating institutional reform as a priorityAssess governance improvement against direct investment.ApplicationA central contemporary development debate.Hard
• 18Analysing informal markets and developmentEvaluate the consequences of large untaxed informal sectors.ApplicationExplains weak tax capacity and measurement problems.Hard

Very Hard — Integrated HL Challenge

• 19Constructing an integrated obstacle analysisCombine multiple constraints into one reasoned diagnosis.ApplicationThe complete structure for an obstacles question.Very Hard
• 20Evaluating internal against external obstaclesJudge whether domestic or global factors dominate.ApplicationThe central evaluation in development questions.Very Hard
• 21Assessing the role of geography in developmentEvaluate deterministic claims against policy evidence.ApplicationPrevents fatalistic conclusions about development.Very Hard
• 22Evaluating debt reliefAssess development gains against moral hazard concerns.ApplicationA frequently set policy evaluation.Very Hard
• 23Assessing obstacles and the sequencing of reformEvaluate which constraints must be addressed first.ApplicationA demanding strategic judgement examiners reward.Very Hard
• 24Synthesis: constraints, traps and development failureIntegrate obstacles, mechanisms and diagnosis into one framework.ApplicationA capstone model preceding strategy evaluation.Very Hard

Easy — Foundations

• 1Trade-based growth strategiesDescribe export promotion and openness as development routes.ApplicationThe market-oriented approach to development.Easy
• 2Import substitution industrialisationDescribe protected domestic production replacing imports.ApplicationThe interventionist alternative to export-led growth.Easy
• 3Economic diversificationExplain reducing dependence on a narrow export base.ApplicationThe response to commodity dependence in 4.9.Easy
• 4Social enterprise in developmentDescribe organisations trading for social objectives.ApplicationA contemporary strategy examiners now expect.Easy
• 5Market-led development strategiesIdentify liberalisation, privatisation and deregulation.ApplicationThe policy package associated with market orthodoxy.Easy
• 6Interventionist development strategiesIdentify industrial policy, public investment and regulation.ApplicationThe state-led alternative to market-led growth.Easy