Easy — Foundations

• 1Economics as a social scienceDefine economics as the study of how societies allocate scarce resources.Why it mattersExplains why economics relies on models rather than laboratory experiments.Easy
• 2ScarcityDefine the gap between unlimited wants and limited available resources.Why it mattersThe condition that makes every economic choice necessary.Easy
• 3The four factors of productionIdentify land, labour, capital and entrepreneurship.Why it mattersThe resources whose scarcity creates the fundamental economic problem.Easy
• 4Choice and the basic economic questionsIdentify what to produce, how to produce and for whom to produce.Why it mattersEvery economic system must answer these three questions.Easy
• 5Opportunity costDefine the value of the next best alternative forgone.Why it mattersTurns any decision into a comparison of what must be given up.Easy
• 6The production possibilities curveDefine a diagram showing the maximum combinations of two goods.Why it mattersThe first diagram you will be asked to draw in Paper 1.Easy

Medium — Applications

• 7Points on, inside and outside the PPCExplain efficiency, unemployed resources and unattainable combinations.Why it mattersShows at a glance whether an economy is using resources fully.Medium
• 8Opportunity cost along a PPCCalculate the units of one good sacrificed to gain another.Why it mattersA standard quantitative question set on the diagram.Medium
• 9Increasing opportunity costExplain why the PPC is normally drawn concave to the origin.Why it mattersReflects that resources are not equally suited to all uses.Medium
• 10Economic growth on a PPCExplain an outward shift caused by more or better resources.Why it mattersDistinguishes actual growth from potential growth.Medium
• 11Capital versus consumer goodsExplain the trade-off between present and future consumption.Why it mattersExplains why investment today raises output tomorrow.Medium
• 12Economic systemsCompare free market, centrally planned and mixed economies.Why it mattersDetermines who answers the three basic economic questions.Medium

Hard — Structured IB

• 13Analysing a shift versus a movement on the PPCExamine what causes each and distinguish them precisely.Why it mattersA frequent source of lost marks in Paper 1.Hard
• 14Analysing resource reallocationExamine the winners and losers when production is switched.Why it mattersConnects opportunity cost to real government decisions.Hard
• 15Positive and normative statementsDistinguish factual claims from value judgements.Why it mattersDetermines whether a claim can be tested against evidence.Hard
• 16Analysing the role of markets in allocationExamine how prices allocate scarce resources without direction.Why it mattersThe foundation of all microeconomic analysis.Hard
• 17Analysing sustainability and the PPCExamine how resource depletion can shift the curve inwards.Why it mattersLinks the basic model to real environmental constraints.Hard
• 18Ceteris paribus in economic reasoningAnalyse why economists hold other variables constant.Why it mattersMakes it possible to isolate one cause at a time.Hard

Very Hard — Integrated SL

• 19Evaluating the usefulness of the PPC modelJudge its simplifying assumptions against its explanatory power.Why it mattersPrepares you to evaluate any model in the course.Very Hard
• 20Evaluating the choice between consumer and capital goodsWeigh present living standards against future growth.Why it mattersA genuine dilemma facing developing economies.Very Hard
• 21Assessing which economic system best answers the three questionsWeigh efficiency, equity and freedom together.Why it mattersRequires balanced treatment of a contested issue.Very Hard
• 22Judging opportunity cost in a real policy decisionApply the concept to one specific government spending choice.Why it mattersTurns an abstract idea into applied evaluation.Very Hard
• 23Integrating scarcity with market failureLink the basic problem to later analysis of inefficient outcomes.Why it mattersRewards synoptic reasoning across the whole course.Very Hard
• 24Constructing a full evaluation using the PPCBuild a diagram-led argument with a clear supported conclusion.Why it mattersModels the structure examiners reward in Paper 1 Part B.Very Hard

Easy — Foundations

• 1Economic modelsDefine simplified representations of economic relationships.Why it mattersEvery diagram you draw in this course is a model.Easy
• 2Assumptions in economic modellingIdentify the simplifications on which a model depends.Why it mattersDetermines the limits of any conclusion you draw.Easy
• 3The ceteris paribus assumptionDefine holding all other variables constant.Why it mattersAllows a single relationship to be isolated and drawn.Easy
• 4Rational economic decision-makingDefine the assumption that agents maximise their own benefit.Why it mattersThe foundation of traditional demand and supply theory.Easy
• 5Microeconomics and macroeconomicsDistinguish the study of individual markets from the whole economy.Why it mattersDetermines which tools apply to a given question.Easy
• 6Positive and normative economicsDistinguish testable statements from value-based statements.Why it mattersA distinction examiners test directly.Easy

Medium — Applications

• 7The classical school of thoughtExplain the belief that markets self-correct to full employment.Why it mattersUnderlies the vertical long-run aggregate supply curve.Medium
• 8The Keynesian school of thoughtExplain the belief that economies can settle below full employment.Why it mattersUnderlies the case for active demand management.Medium
• 9The monetarist perspectiveExplain the emphasis on money supply growth and inflation.Why it mattersExplains central bank focus on controlling inflation.Medium
• 10Behavioural economics as a challengeExplain the questioning of full rationality in decision-making.Why it mattersExplains why nudges now appear in government policy.Medium
• 11Empirical evidence in economicsExplain the use of data to test economic relationships.Why it mattersDistinguishes economics from pure abstract theory.Medium
• 12The role of diagrams in economic argumentExplain how a diagram communicates a chain of reasoning.Why it mattersDiagrams carry marks in every paper you sit.Medium

Hard — Structured IB

• 13Analysing the limitations of assumptionsExamine how unrealistic assumptions weaken conclusions.Why it mattersEssential for evaluating any model you draw.Hard
• 14Comparing classical and Keynesian viewsAnalyse their sharply differing policy implications.Why it mattersThe central debate in macroeconomic policy questions.Hard
• 15Analysing why economists disagreeExamine differing assumptions, values and interpretations of evidence.Why it mattersExplains conflicting policy advice reported in the news.Hard
• 16Analysing the difficulty of controlled experimentsExamine why economics relies on observation and natural experiments.Why it mattersExplains uncertainty in estimating the effect of policy.Hard
• 17Analysing the use of models in policyExamine how models both inform and constrain real decisions.Why it mattersConnects abstract theory to actual government behaviour.Hard
• 18Analysing bias in economic dataExamine measurement, definition and reporting problems.Why it mattersDetermines how much weight evidence actually deserves.Hard

Very Hard — Integrated SL

• 19Evaluating the realism of the rationality assumptionJudge traditional theory against behavioural evidence.Why it mattersUnderlies contemporary debates about policy design.Very Hard
• 20Evaluating whether economics is a scienceWeigh testability against the role of value judgements.Why it mattersA recurring conceptual question in the course.Very Hard
• 21Assessing which school best explains a given episodeApply competing frameworks to one real economic event.Why it mattersRequires selecting a framework rather than describing all.Very Hard
• 22Judging the reliability of an economic modelEvaluate assumptions, evidence and predictive record together.Why it mattersThe core evaluative skill for the whole syllabus.Very Hard
• 23Integrating methodology with policy evaluationLink the choice of model to the policy conclusion reached.Why it mattersExplains why economists recommend different policies.Very Hard
• 24Constructing a full methodological critiqueBuild a structured judgement of a model's usefulness and limits.Why it mattersModels the highest-band evaluative reasoning.Very Hard

Easy — Foundations

• 1Definition of demandDefine the quantity consumers are willing and able to buy at each price.Why it mattersWillingness alone is not demand without ability to pay.Easy
• 2The law of demandState the inverse relationship between price and quantity demanded.Why it mattersThe reason every demand curve slopes downwards.Easy
• 3Drawing a demand curveConstruct a correctly labelled downward-sloping demand curve.Why it mattersDiagram accuracy carries marks in every paper.Easy
• 4Movement along the demand curveExplain a change in quantity demanded caused by price.Why it mattersOnly a price change moves you along the curve.Easy
• 5Shifts of the demand curveExplain a change in demand caused by a non-price factor.Why it mattersThe most commonly confused idea in Paper 1.Easy
• 6Individual and market demandDistinguish one consumer's demand from horizontal summation.Why it mattersExplains how a market curve is actually built up.Easy

Medium — Applications

• 7Income as a determinant of demandExplain the different effects on normal and inferior goods.Why it mattersExplains why demand for some goods falls as incomes rise.Medium
• 8Prices of substitutesExplain how a rival product's price change shifts demand.Why it mattersExplains competition between closely similar products.Medium
• 9Prices of complementsExplain how a jointly consumed good shifts demand.Why it mattersExplains linked markets such as cars and fuel.Medium
• 10Tastes and preferencesExplain how advertising and fashion shift demand.Why it mattersExplains sudden changes in the size of a market.Medium
• 11Number of consumersExplain how population and market access shift demand.Why it mattersExplains demand growth in rapidly expanding markets.Medium
• 12Expectations of future pricesExplain how anticipated changes shift current demand.Why it mattersExplains stockpiling ahead of an expected price rise.Medium

Hard — Structured IB

• 13The income and substitution effectsAnalyse the two reasons quantity demanded rises as price falls.Why it mattersThe theoretical basis of the law of demand.Hard
• 14Analysing a demand functionUse a linear equation to calculate quantity demanded.Why it mattersA standard quantitative task in the course.Hard
• 15Deriving a demand schedule and curveConstruct both from a given demand function.Why it mattersLinks the algebra to the diagram you must draw.Hard
• 16Analysing simultaneous determinant changesExamine the net effect when two factors change at once.Why it mattersPrevents oversimplified single-cause answers.Hard
• 17Distinguishing demand from quantity demandedAnalyse precise use of terminology in written answers.Why it mattersImprecision here loses marks routinely.Hard
• 18Analysing demand in linked marketsExamine how a shift in one market affects a related one.Why it mattersExplains chain reactions across connected goods.Hard

Very Hard — Integrated SL

• 19Evaluating the assumptions behind the demand curveJudge rationality and ceteris paribus as simplifications.Why it mattersRequired for full evaluation of the model.Very Hard
• 20Assessing the relative importance of demand determinantsJudge which factor dominates in a given market.Why it mattersTurns a list into a prioritised argument.Very Hard
• 21Evaluating demand analysis for a real marketApply the model to a specific product with evidence.Why it mattersRewards application rather than recitation.Very Hard
• 22Judging the limits of the law of demandEvaluate apparent exceptions such as status goods.Why it mattersTests critical understanding of the core law.Very Hard
• 23Integrating demand with elasticity and revenueLink a demand shift to producer revenue outcomes.Why it mattersRewards a synoptic link forward into Unit 2.5.Very Hard
• 24Constructing a full demand-based analysisBuild a diagram-led argument with a supported conclusion.Why it mattersModels the structure expected in extended responses.Very Hard

Easy — Foundations

• 1Definition of supplyDefine the quantity producers are willing and able to sell at each price.Why it mattersRequires both willingness and genuine productive ability.Easy
• 2The law of supplyState the direct relationship between price and quantity supplied.Why it mattersThe reason every supply curve slopes upwards.Easy
• 3Drawing a supply curveConstruct a correctly labelled upward-sloping supply curve.Why it mattersDiagram accuracy carries marks in every paper.Easy
• 4Movement along the supply curveExplain a change in quantity supplied caused by price.Why it mattersOnly a price change moves you along the curve.Easy
• 5Shifts of the supply curveExplain a change in supply caused by a non-price factor.Why it mattersFrequently confused with movements in written answers.Easy
• 6Individual and market supplyDistinguish one firm's supply from horizontal summation.Why it mattersExplains how a market supply curve is constructed.Easy

Medium — Applications

• 7Costs of production as a determinantExplain how input prices shift the supply curve.Why it mattersExplains why supply falls when wages or materials rise.Medium
• 8Technology and productivityExplain how improved methods shift supply outwards.Why it mattersExplains long-run falls in the real price of goods.Medium
• 9Indirect taxes on producersExplain how a tax shifts the supply curve inwards.Why it mattersThe basis of every indirect tax diagram you will draw.Medium
• 10Subsidies to producersExplain how a subsidy shifts the supply curve outwards.Why it mattersThe basis of every subsidy diagram you will draw.Medium
• 11Number of firms in the marketExplain how entry and exit shift market supply.Why it mattersExplains supply expansion in profitable industries.Medium
• 12Prices of related goods in productionExplain competitive and joint supply relationships.Why it mattersExplains why one crop's price affects another's supply.Medium

Hard — Structured IB

• 13Analysing a supply functionUse a linear equation to calculate quantity supplied.Why it mattersA standard quantitative task in the course.Hard
• 14Deriving a supply schedule and curveConstruct both from a given supply function.Why it mattersLinks the algebra directly to the required diagram.Hard
• 15Analysing supply shocksExamine the effects of weather, conflict or disruption.Why it mattersExplains sudden price spikes in commodity markets.Hard
• 16Analysing the effect of expectations on supplyExamine producer withholding or releasing of output.Why it mattersExplains storage behaviour in agricultural markets.Hard
• 17Analysing supply in the short and long runExamine how flexibility changes with the time available.Why it mattersPrepares you for elasticity of supply analysis.Hard
• 18Distinguishing supply from quantity suppliedAnalyse precise terminology in extended writing.Why it mattersImprecision here routinely loses marks.Hard

Very Hard — Integrated SL

• 19Evaluating the assumptions behind the supply curveJudge profit maximisation as a simplifying assumption.Why it mattersRequired for full evaluation of the model.Very Hard
• 20Assessing the relative importance of supply determinantsJudge which factor dominates in a given industry.Why it mattersTurns a list into a prioritised argument.Very Hard
• 21Evaluating supply analysis for a real marketApply the model to one specific industry with evidence.Why it mattersRewards application rather than recitation.Very Hard
• 22Judging the effect of a supply shock on stakeholdersEvaluate consequences for consumers, producers and government.Why it mattersExtends analysis into evaluation of real impact.Very Hard
• 23Integrating supply with cost and market structureLink supply behaviour to firm objectives and costs.Why it mattersRewards a synoptic link forward into Unit 2.11.Very Hard
• 24Constructing a full supply-based analysisBuild a diagram-led argument with a supported conclusion.Why it mattersModels the structure expected in extended responses.Very Hard

Easy — Foundations

• 1Market equilibriumDefine the price at which quantity demanded equals quantity supplied.Why it mattersThe point every market diagram must identify clearly.Easy
• 2Excess demandDefine a shortage arising when price is below equilibrium.Why it mattersExplains queues, waiting lists and rising prices.Easy
• 3Excess supplyDefine a surplus arising when price is above equilibrium.Why it mattersExplains unsold stock and end-of-season discounting.Easy
• 4Calculating equilibriumSolve demand and supply equations simultaneously.Why it mattersA standard quantitative task in the course.Easy
• 5Consumer surplusDefine the difference between willingness to pay and price paid.Why it mattersMeasures the benefit consumers gain from a market.Easy
• 6Producer surplusDefine the difference between price received and minimum acceptable price.Why it mattersMeasures the benefit producers gain from a market.Easy

Medium — Applications

• 7Calculating consumer and producer surplusCompute the areas of the relevant triangles.Why it mattersA frequent quantitative question in Paper 1 and Paper 3.Medium
• 8Effects of a demand shift on equilibriumExplain the new price and quantity following a shift.Why it mattersThe single most tested diagram in microeconomics.Medium
• 9Effects of a supply shift on equilibriumExplain the new price and quantity following a shift.Why it mattersThe basis of analysing every shock and policy.Medium
• 10The signalling function of pricesExplain how prices convey information to producers.Why it mattersExplains how markets coordinate without any instruction.Medium
• 11The incentive function of pricesExplain how prices reward the reallocation of resources.Why it mattersExplains why firms enter profitable markets.Medium
• 12The rationing function of pricesExplain how prices allocate scarce goods among buyers.Why it mattersExplains why shortages push prices upwards.Medium

Hard — Structured IB

• 13Analysing simultaneous demand and supply shiftsExamine determinate and indeterminate outcomes.Why it mattersA classic higher-mark diagram question.Hard
• 14Analysing social surplus and allocative efficiencyExamine the maximisation of combined surplus at equilibrium.Why it mattersThe benchmark against which market failure is judged.Hard
• 15Analysing the speed of market adjustmentExamine why some markets clear only slowly.Why it mattersExplains persistent shortages in housing and labour.Hard
• 16Analysing price mechanism failureExamine cases where prices fail to allocate efficiently.Why it mattersIntroduces the case for government intervention.Hard
• 17Analysing changes in surplus after a shiftExamine how consumer and producer surplus are redistributed.Why it mattersTurns a diagram into a distributional argument.Hard
• 18Analysing equilibrium from a data setInterpret schedules and identify the market clearing price.Why it mattersA common data-response task in Paper 1.Hard

Very Hard — Integrated SL

• 19Evaluating the efficiency of the price mechanismJudge its coordination strengths against its failures.Why it mattersThe central evaluative question in microeconomics.Very Hard
• 20Assessing who gains most from a market outcomeWeigh consumer and producer surplus changes.Why it mattersAdds equity considerations to efficiency analysis.Very Hard
• 21Evaluating the assumptions of the competitive modelJudge perfect information and many buyers and sellers.Why it mattersRequired before applying the model to reality.Very Hard
• 22Judging the effect of a shock on market participantsEvaluate winners and losers with diagram support.Why it mattersStandard structure for extended response questions.Very Hard
• 23Integrating equilibrium analysis with elasticityLink the size of price and quantity changes to elasticity.Why it mattersRewards a synoptic link forward into Units 2.5 and 2.6.Very Hard
• 24Constructing a full equilibrium evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Assumptions of rational consumer choiceIdentify utility maximisation, perfect information and consistency.Why it mattersThe foundation of the traditional demand model.Easy
• 2UtilityDefine the satisfaction gained from consuming a good.Why it mattersThe quantity consumers are assumed to maximise.Easy
• 3Behavioural economicsDefine the study of actual rather than assumed decision-making.Why it mattersExplains systematic departures from the standard model.Easy
• 4Bounded rationalityDefine decision-making limited by information and cognitive capacity.Why it mattersExplains reliance on rules of thumb rather than calculation.Easy
• 5Bounded self-controlDefine the gap between stated intention and actual behaviour.Why it mattersExplains under-saving and impulse purchasing.Easy
• 6Bounded selfishnessDefine behaviour influenced by fairness and altruism.Why it mattersExplains tipping, donating and cooperative behaviour.Easy

Medium — Applications

• 7Choice architectureExplain how the presentation of options changes decisions.Why it mattersThe basis of all nudge-style policy design.Medium
• 8Default choice optionsExplain how pre-set options raise take-up rates.Why it mattersExplains automatic enrolment in pension schemes.Medium
• 9Framing effectsExplain how wording alters perception of identical outcomes.Why it mattersExplains why identical policies attract different reactions.Medium
• 10Nudge theoryExplain influencing behaviour without restricting choice.Why it mattersA low-cost alternative to regulation or taxation.Medium
• 11Alternative business objectivesExplain growth, market share, satisficing and social goals.Why it mattersChallenges the assumption of pure profit maximisation.Medium
• 12Corporate social responsibility as an objectiveExplain firms pursuing social and environmental aims.Why it mattersExplains behaviour not explained by profit alone.Medium

Hard — Structured IB

• 13Analysing the implications of bounded rationalityExamine how it undermines standard demand predictions.Why it mattersDetermines whether the traditional model applies.Hard
• 14Analysing anchoring and availability biasesExamine how reference points distort valuation.Why it mattersExplains the effectiveness of recommended retail prices.Hard
• 15Analysing nudges against traditional policy toolsCompare cost, effectiveness and degree of coercion.Why it mattersA recurring policy evaluation question.Hard
• 16Analysing satisficing behaviour by firmsExamine acceptable rather than maximum outcomes.Why it mattersExplains why some profitable firms do not expand.Hard
• 17Analysing the consequences of alternative objectivesExamine effects on price, output and efficiency.Why it mattersLinks firm objectives directly to market outcomes.Hard
• 18Analysing behavioural insights in public policyExamine real applications in health and savings policy.Why it mattersConnects theory to observable government programmes.Hard

Very Hard — Integrated SL

• 19Evaluating behavioural economics against traditional theoryJudge realism against predictive simplicity.Why it mattersA central conceptual debate in the course.Very Hard
• 20Assessing the effectiveness of nudgesWeigh evidence of impact against durability and scale.Why it mattersTests whether low-cost policy actually works.Very Hard
• 21Evaluating the ethics of choice architectureJudge paternalism against preserved freedom of choice.Why it mattersRaises a genuine normative question.Very Hard
• 22Judging whether firms maximise profitEvaluate the evidence for alternative objectives.Why it mattersDetermines whether standard firm theory applies.Very Hard
• 23Integrating behavioural insight with market failure policyLink nudges to correcting inefficient outcomes.Why it mattersRewards a synoptic link forward into Units 2.7 and 2.8.Very Hard
• 24Constructing a full evaluation of decision-making modelsBuild a balanced argument with a supported conclusion.Why it mattersModels the highest-band evaluative structure.Very Hard

Easy — Foundations

• 1Price elasticity of demandDefine the responsiveness of quantity demanded to a price change.Why it mattersDetermines what happens to revenue when price changes.Easy
• 2Calculating PEDApply percentage change in quantity over percentage change in price.Why it mattersA guaranteed quantitative skill in this course.Easy
• 3Interpreting the sign of PEDExplain why the calculated value is normally negative.Why it mattersPrevents misreading the result of your calculation.Easy
• 4Elastic and inelastic demandDistinguish values greater and less than one in modulus.Why it mattersDetermines the direction of the revenue effect.Easy
• 5Special values of PEDIdentify unit elastic, perfectly elastic and perfectly inelastic demand.Why it mattersNeeded for accurate diagram drawing.Easy
• 6Income elasticity of demandDefine the responsiveness of demand to a change in income.Why it mattersClassifies goods as normal, inferior or luxury.Easy

Medium — Applications

• 7Determinants of PEDExplain substitutes, necessity, proportion of income and time.Why it mattersExplains why elasticity differs between goods.Medium
• 8PED along a straight-line demand curveExplain why elasticity varies at every point on the curve.Why it mattersA frequently misunderstood theoretical point.Medium
• 9PED and total revenueExplain the effect of a price change on producer revenue.Why it mattersThe most useful business application of elasticity.Medium
• 10Calculating YEDApply percentage change in demand over percentage change in income.Why it mattersA standard quantitative task in the course.Medium
• 11Interpreting YED valuesClassify goods using positive, negative and greater-than-one values.Why it mattersPredicts sector growth as national income rises.Medium
• 12YED and sectoral changeExplain shifts between primary, secondary and tertiary sectors.Why it mattersExplains structural change in developing economies.Medium

Hard — Structured IB

• 13Analysing PED for pricing decisionsExamine whether a firm should raise or lower its price.Why it mattersThe direct commercial application of elasticity.Hard
• 14Analysing PED and indirect taxationExamine why governments choose to tax inelastic goods.Why it mattersExplains tobacco, alcohol and fuel taxation.Hard
• 15Analysing tax incidence using PEDExamine how the burden splits between buyer and seller.Why it mattersA frequent higher-mark diagram question.Hard
• 16Analysing YED for business planningExamine which products grow fastest as incomes rise.Why it mattersGuides long-term investment decisions.Hard
• 17Analysing elasticity in primary commodity marketsExamine price volatility caused by inelastic demand.Why it mattersExplains income instability for producer countries.Hard
• 18Analysing the limitations of elasticity estimatesExamine data, time period and ceteris paribus problems.Why it mattersDetermines how far a calculated value can be trusted.Hard

Very Hard — Integrated SL

• 19Evaluating a pricing strategy using PEDJudge a proposed price change with calculation and context.Why it mattersCombines quantitative and qualitative reasoning.Very Hard
• 20Assessing the usefulness of PED to governmentWeigh revenue objectives against behavioural objectives.Why it mattersCentral to evaluating indirect tax policy.Very Hard
• 21Evaluating the reliability of elasticity dataJudge estimation problems and changing market conditions.Why it mattersPrevents overconfident policy conclusions.Very Hard
• 22Judging the effect of elasticity on producer incomesEvaluate volatility in agricultural and commodity markets.Why it mattersLinks elasticity to a real development problem.Very Hard
• 23Integrating PED with government intervention analysisLink elasticity to the effectiveness of taxes and subsidies.Why it mattersRewards a synoptic link forward into Unit 2.7.Very Hard
• 24Constructing a full elasticity-based evaluationCalculate, interpret, weigh limitations and conclude.Why it mattersModels the complete expected answer structure.Very Hard

Easy — Foundations

• 1Price elasticity of supplyDefine the responsiveness of quantity supplied to a price change.Why it mattersDetermines how quickly markets respond to rising demand.Easy
• 2Calculating PESApply percentage change in quantity supplied over percentage change in price.Why it mattersA guaranteed quantitative skill in this course.Easy
• 3Interpreting the sign of PESExplain why the calculated value is normally positive.Why it mattersPrevents misreading the result of your calculation.Easy
• 4Elastic and inelastic supplyDistinguish values greater and less than one.Why it mattersDetermines how much price must rise to raise output.Easy
• 5Special values of PESIdentify perfectly elastic and perfectly inelastic supply.Why it mattersNeeded for accurate diagram drawing.Easy
• 6Unit elastic supplyIdentify a PES value of exactly one.Why it mattersA specific case examiners may ask you to draw.Easy

Medium — Applications

• 7Time as a determinant of PESExplain why supply is more elastic in the long run.Why it mattersExplains why shortages ease as time passes.Medium
• 8Spare capacity and PESExplain how unused capacity raises supply responsiveness.Why it mattersExplains rapid output growth after a recession.Medium
• 9Mobility of factors of productionExplain how resource flexibility affects supply responsiveness.Why it mattersExplains why skilled labour markets adjust slowly.Medium
• 10Ability to store stockExplain how inventories raise short-run supply responsiveness.Why it mattersExplains stable prices in markets for storable goods.Medium
• 11PES across different sectorsCompare typical elasticity in primary, manufacturing and service sectors.Why it mattersExplains volatility in agricultural markets.Medium
• 12Diagrammatic representation of PESDraw supply curves of differing elasticity correctly.Why it mattersDiagram precision carries marks in Paper 1.Medium

Hard — Structured IB

• 13Analysing PES and price volatilityExamine why inelastic supply amplifies price swings.Why it mattersExplains commodity price instability.Hard
• 14Analysing PES and the incidence of an indirect taxExamine how supply responsiveness shifts the burden.Why it mattersA frequent higher-mark diagram question.Hard
• 15Analysing PES and the effectiveness of a subsidyExamine how responsiveness affects the output gain.Why it mattersDetermines whether a subsidy achieves its aim.Hard
• 16Analysing short-run and long-run supply responsesExamine adjustment over different time periods.Why it mattersExplains why policy effects change over time.Hard
• 17Analysing PES in developing economiesExamine infrastructure and capital constraints on supply.Why it mattersExplains why supply-side reform takes many years.Hard
• 18Analysing the limitations of PES estimatesExamine data availability and changing conditions.Why it mattersDetermines how far a value can be relied upon.Hard

Very Hard — Integrated SL

• 19Evaluating the significance of PES for policyJudge how supply responsiveness shapes intervention outcomes.Why it mattersDetermines whether a policy will actually work.Very Hard
• 20Assessing PES as an explanation of price instabilityWeigh it against demand-side and external causes.Why it mattersPrevents single-cause explanations of volatility.Very Hard
• 21Evaluating measures to raise supply elasticityJudge investment, training and infrastructure options.Why it mattersConnects PES directly to supply-side policy.Very Hard
• 22Judging the combined effect of PED and PESEvaluate outcomes in markets where both are inelastic.Why it mattersExplains extreme volatility in some real markets.Very Hard
• 23Integrating PES with market intervention analysisLink supply responsiveness to tax and subsidy outcomes.Why it mattersRewards a synoptic link forward into Unit 2.7.Very Hard
• 24Constructing a full PES-based evaluationCalculate, interpret, weigh limitations and conclude.Why it mattersModels the complete expected answer structure.Very Hard

Easy — Foundations

• 1Reasons for government interventionIdentify efficiency, equity, revenue and merit good objectives.Why it mattersFrames every intervention question in the course.Easy
• 2Indirect taxesDefine taxes levied on expenditure rather than on income.Why it mattersThe most commonly examined form of intervention.Easy
• 3Specific and ad valorem taxesDistinguish a fixed amount per unit from a percentage of price.Why it mattersDetermines the shape of the supply curve shift you draw.Easy
• 4SubsidiesDefine government payments to producers that lower their costs.Why it mattersUsed to raise output of merit goods.Easy
• 5Price ceilingsDefine a maximum legal price set below equilibrium.Why it mattersUsed to keep essential goods affordable.Easy
• 6Price floorsDefine a minimum legal price set above equilibrium.Why it mattersUsed for minimum wages and agricultural support.Easy

Medium — Applications

• 7Diagram of an indirect taxDraw the supply shift and identify the new equilibrium.Why it mattersA guaranteed Paper 1 diagram.Medium
• 8Diagram of a subsidyDraw the supply shift and identify the new equilibrium.Why it mattersA guaranteed Paper 1 diagram.Medium
• 9Consequences of a price ceilingExplain shortages, queues and the growth of parallel markets.Why it mattersExplains the observed outcomes of rent control.Medium
• 10Consequences of a price floorExplain surpluses, government purchase and disposal costs.Why it mattersExplains agricultural stockpiles and destruction.Medium
• 11Direct provision of goods and servicesExplain government supply of education and healthcare.Why it mattersExplains state provision of merit goods.Medium
• 12Regulation and legislationExplain rules, bans and standards as intervention tools.Why it mattersA low-cost alternative to taxation.Medium

Hard — Structured IB

• 13Calculating tax revenue and subsidy expenditureCompute the relevant areas on the diagram.Why it mattersA standard quantitative task in Paper 1 and Paper 3.Hard
• 14Analysing the incidence of an indirect taxExamine the split of the burden between consumer and producer.Why it mattersDetermines who really pays the tax.Hard
• 15Analysing welfare effects of interventionExamine changes in consumer surplus, producer surplus and welfare loss.Why it mattersThe core efficiency argument in every question.Hard
• 16Analysing minimum wage effectsExamine employment, income and labour market outcomes.Why it mattersA frequent extended-response topic.Hard
• 17Analysing behavioural nudges as interventionExamine effectiveness relative to taxes and outright bans.Why it mattersThe newest tool in the policy toolkit.Hard
• 18Analysing unintended consequences of interventionExamine black markets, evasion and misallocation.Why it mattersPrevents one-sided support for intervention.Hard

Very Hard — Integrated SL

• 19Evaluating an indirect tax as a policy toolWeigh revenue and behaviour change against regressivity.Why it mattersA standard extended-response question.Very Hard
• 20Evaluating a subsidy as a policy toolWeigh output gains against opportunity cost and inefficiency.Why it mattersRequires balanced treatment with diagram support.Very Hard
• 21Assessing price controls against alternativesJudge ceilings and floors against direct income transfers.Why it mattersTests whether you can compare policy options.Very Hard
• 22Judging intervention using elasticity evidenceEvaluate effectiveness given the relevant PED and PES values.Why it mattersRewards integration of quantitative reasoning.Very Hard
• 23Integrating intervention with equity objectivesLink efficiency effects to distributional consequences.Why it mattersConnects microeconomic policy to inequality.Very Hard
• 24Constructing a full intervention evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Market failureDefine the failure of markets to allocate resources efficiently.Why it mattersThe justification for all corrective intervention.Easy
• 2ExternalitiesDefine costs or benefits affecting uninvolved third parties.Why it mattersThe most common single source of market failure.Easy
• 3Negative production externalitiesDefine external costs generated by the act of production.Why it mattersExplains industrial pollution and its regulation.Easy
• 4Negative consumption externalitiesDefine external costs generated by the act of consumption.Why it mattersExplains passive smoking and road congestion.Easy
• 5Positive production externalitiesDefine external benefits generated by production.Why it mattersExplains spillovers from research and staff training.Easy
• 6Positive consumption externalitiesDefine external benefits generated by consumption.Why it mattersExplains vaccination and education benefits.Easy

Medium — Applications

• 7Marginal private and social costDistinguish MPC from MSC on a diagram.Why it mattersThe basis of every production externality diagram.Medium
• 8Marginal private and social benefitDistinguish MPB from MSB on a diagram.Why it mattersNeeded for consumption externality analysis.Medium
• 9Diagram of a negative production externalityDraw the divergence and identify the welfare loss.Why it mattersA guaranteed Paper 1 diagram.Medium
• 10Diagram of a positive consumption externalityDraw the divergence and identify the welfare loss.Why it mattersA guaranteed Paper 1 diagram.Medium
• 11Common access resourcesDefine resources that are non-excludable but rival.Why it mattersExplains fisheries, forests and the atmosphere.Medium
• 12The tragedy of the commonsExplain overuse arising from open access to a resource.Why it mattersExplains depletion of shared natural resources.Medium

Hard — Structured IB

• 13Identifying and interpreting welfare lossAnalyse the triangle representing lost social welfare.Why it mattersMeasures the size of the market failure.Hard
• 14Analysing taxation to correct negative externalitiesExamine the internalising of the external cost.Why it mattersThe standard corrective policy response.Hard
• 15Analysing subsidies to correct positive externalitiesExamine the internalising of the external benefit.Why it mattersExplains subsidised vaccination and education.Hard
• 16Analysing tradable permitsExamine market-based control of total pollution quantity.Why it mattersExplains how carbon trading schemes work.Hard
• 17Analysing legislation and regulationExamine bans, limits and standards as corrective tools.Why it mattersOften faster to apply than price-based instruments.Hard
• 18Analysing international cooperation on externalitiesExamine treaties addressing cross-border pollution.Why it mattersExplains the difficulty of global climate policy.Hard

Very Hard — Integrated SL

• 19Evaluating carbon taxes against tradable permitsWeigh certainty of price against certainty of quantity.Why it mattersA recurring extended-response comparison.Very Hard
• 20Assessing the difficulty of valuing externalitiesJudge measurement problems in setting a corrective tax.Why it mattersA key limitation of the theoretical solution.Very Hard
• 21Evaluating responses to the tragedy of the commonsWeigh regulation, ownership rights and cooperation.Why it mattersApplies theory to a genuine policy problem.Very Hard
• 22Judging the effectiveness of an environmental policyEvaluate a named intervention against real evidence.Why it mattersRewards applied rather than generic evaluation.Very Hard
• 23Integrating externality analysis with sustainabilityLink market failure to long-run development goals.Why it mattersRewards a synoptic link forward into Unit 4.7.Very Hard
• 24Constructing a full externality evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Public goodsDefine goods that are both non-excludable and non-rival.Why it mattersExplains why markets fail to supply them at all.Easy
• 2Non-excludabilityDefine the impossibility of preventing consumption by non-payers.Why it mattersThe reason charging a market price is unworkable.Easy
• 3Non-rivalryDefine consumption that does not reduce availability to others.Why it mattersThe reason marginal cost of provision is near zero.Easy
• 4Private goodsDefine goods that are both excludable and rival.Why it mattersThe benchmark against which public goods are judged.Easy
• 5The free rider problemDefine consumption of a good without paying for it.Why it mattersThe direct cause of market underprovision.Easy
• 6Examples of public goodsIdentify national defence, street lighting and flood barriers.Why it mattersProvides concrete evidence for written answers.Easy

Medium — Applications

• 7Quasi-public goodsExplain goods that are partly excludable or partly rival.Why it mattersExplains roads, beaches and public parks.Medium
• 8Why markets underprovide public goodsExplain the absence of any profitable pricing mechanism.Why it mattersThe core theoretical argument of this topic.Medium
• 9Direct government provisionExplain state supply funded through general taxation.Why it mattersThe most common solution to underprovision.Medium
• 10Contracting out provisionExplain private supply funded by government contract.Why it mattersExplains public-private delivery arrangements.Medium
• 11Merit and demerit goodsDistinguish under- and over-consumed goods from public goods.Why it mattersA distinction examiners frequently test.Medium
• 12Welfare loss from underprovisionExplain the efficiency cost of the missing output.Why it mattersQuantifies the size of the failure.Medium

Hard — Structured IB

• 13Analysing the free rider problem in practiceExamine the failure of voluntary funding schemes.Why it mattersExplains reliance on compulsory taxation.Hard
• 14Analysing the opportunity cost of provisionExamine the alternative uses of the tax revenue used.Why it mattersPrevents treating provision as costless.Hard
• 15Analysing how much of a public good to provideExamine the difficulty of measuring total social benefit.Why it mattersA central practical problem for government.Hard
• 16Analysing technology and excludabilityExamine how technology can make goods excludable.Why it mattersExplains toll roads and encrypted broadcasting.Hard
• 17Analysing public goods in developing economiesExamine constraints on tax revenue and state capacity.Why it mattersLinks directly to obstacles to development.Hard
• 18Analysing government failure in provisionExamine inefficiency, waste and political influence.Why it mattersPrevents one-sided support for state provision.Hard

Very Hard — Integrated SL

• 19Evaluating direct provision against alternativesWeigh state supply against subsidy and regulation.Why it mattersA standard policy comparison question.Very Hard
• 20Assessing whether a named good is genuinely publicJudge excludability and rivalry against the evidence.Why it mattersTests precise application of the definitions.Very Hard
• 21Evaluating the efficiency of public provisionWeigh correction of market failure against government failure.Why it mattersRequires balanced treatment of both sides.Very Hard
• 22Judging funding options for public goodsEvaluate general taxation, user charges and borrowing.Why it mattersConnects micro theory to fiscal policy.Very Hard
• 23Integrating public goods with development strategyLink infrastructure provision to growth outcomes.Why it mattersRewards a synoptic link forward into Unit 4.Very Hard
• 24Constructing a full public goods evaluationBuild a structured argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Asymmetric informationDefine unequal information between buyers and sellers.Why it mattersA recognised source of market failure.Easy
• 2Perfect information as an assumptionIdentify its role in the competitive market model.Why it mattersIts absence explains why real markets fail.Easy
• 3Adverse selectionDefine poor outcomes arising before a transaction takes place.Why it mattersExplains persistent problems in insurance markets.Easy
• 4Moral hazardDefine changed behaviour arising after a transaction.Why it mattersExplains greater risk-taking once insured.Easy
• 5Producers holding more informationIdentify cases where sellers know more than buyers.Why it mattersExplains second-hand car and medical markets.Easy
• 6Consumers holding more informationIdentify cases where buyers know more than sellers.Why it mattersExplains insurance applicants concealing known risk.Easy

Medium — Applications

• 7Consequences of adverse selectionExplain market shrinkage and falling average quality.Why it mattersExplains why some markets fail to exist at all.Medium
• 8Consequences of moral hazardExplain excessive risk-taking and rising costs.Why it mattersExplains insurance excesses and monitoring rules.Medium
• 9SignallingExplain informed parties credibly conveying information.Why it mattersExplains qualifications, warranties and certification.Medium
• 10ScreeningExplain uninformed parties extracting hidden information.Why it mattersExplains medical checks before issuing insurance.Medium
• 11Government regulation of informationExplain labelling, licensing and disclosure requirements.Why it mattersThe main policy response to information gaps.Medium
• 12Welfare loss from asymmetric informationExplain the efficiency cost of resulting misallocation.Why it mattersQuantifies the size of the failure.Medium

Hard — Structured IB

• 13Analysing the market for used carsExamine quality collapse caused by hidden information.Why it mattersThe classic illustration of adverse selection.Hard
• 14Analysing information failure in healthcareExamine the patient's reliance on provider expertise.Why it mattersJustifies regulation of medical professions.Hard
• 15Analysing information failure in financial marketsExamine hidden risk in lending and investment.Why it mattersExplains regulatory responses after financial crises.Hard
• 16Analysing labelling and disclosure policiesExamine effects on genuinely informed consumer choice.Why it mattersA low-cost and very widely used intervention.Hard
• 17Analysing behavioural responses to informationExamine why more information does not always change behaviour.Why it mattersLinks information failure to behavioural economics.Hard
• 18Analysing the limits of regulationExamine cost, enforcement and complexity problems.Why it mattersPrevents assuming regulation solves the problem.Hard

Very Hard — Integrated SL

• 19Evaluating regulation as a response to information failureWeigh improved outcomes against cost and burden.Why it mattersA standard policy evaluation question.Very Hard
• 20Assessing whether information provision changes behaviourJudge evidence from health and financial policy.Why it mattersTests critical use of real evidence.Very Hard
• 21Evaluating the severity of information failureJudge how far it justifies intervention in a market.Why it mattersPrevents overstating a theoretical problem.Very Hard
• 22Judging alternative responses to moral hazardEvaluate monitoring, excesses and incentive design.Why it mattersApplies theory to insurance and lending markets.Very Hard
• 23Integrating information failure with other market failuresLink it to externality and merit good arguments.Why it mattersRewards synoptic microeconomic reasoning.Very Hard
• 24Constructing a full information failure evaluationBuild a structured argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Market structureDefine the characteristics describing competition in a market.Why it mattersDetermines firm behaviour and market outcomes.Easy
• 2Perfect competitionIdentify many firms, identical products and free entry.Why it mattersThe theoretical benchmark for efficiency.Easy
• 3MonopolyIdentify a single dominant seller protected by barriers to entry.Why it mattersThe benchmark case of market power.Easy
• 4OligopolyIdentify a few large interdependent firms.Why it mattersThe structure of many real-world industries.Easy
• 5Monopolistic competitionIdentify many firms selling differentiated products.Why it mattersExplains restaurants, hairdressers and clothing retail.Easy
• 6Profit maximisationDefine producing where marginal revenue equals marginal cost.Why it mattersThe assumed objective of firms in standard theory.Easy

Medium — Applications

• 7Barriers to entryExplain legal, cost and strategic obstacles facing new firms.Why it mattersThe source of sustained market power.Medium
• 8Price takers and price makersDistinguish firms with and without pricing influence.Why it mattersDetermines the shape of the firm's demand curve.Medium
• 9Product differentiationExplain real and perceived differences between products.Why it mattersThe source of power in monopolistic competition.Medium
• 10Interdependence in oligopolyExplain how each firm's decisions affect its rivals.Why it mattersExplains price rigidity and strategic behaviour.Medium
• 11Collusion and cartelsExplain agreements to restrict output and raise price.Why it mattersExplains why competition authorities exist.Medium
• 12Non-price competitionExplain branding, service and advertising rivalry.Why it mattersExplains competition where prices are very similar.Medium

Hard — Structured IB

• 13Analysing efficiency under perfect competitionExamine allocative and productive efficiency outcomes.Why it mattersThe benchmark against which monopoly is judged.Hard
• 14Analysing the welfare effects of monopolyExamine higher price, lower output and welfare loss.Why it mattersThe core case against unchecked market power.Hard
• 15Analysing possible benefits of monopolyExamine economies of scale and funding for research.Why it mattersPrevents a one-sided condemnation of monopoly.Hard
• 16Analysing game theory in oligopolyExamine the prisoner's dilemma applied to pricing.Why it mattersExplains why cartels are inherently unstable.Hard
• 17Analysing government responses to market powerExamine competition law, regulation and public ownership.Why it mattersThe applied policy content of this topic.Hard
• 18Analysing natural monopolyExamine industries where a single firm is most efficient.Why it mattersExplains regulation of utilities and rail networks.Hard

Very Hard — Integrated SL

• 19Evaluating monopoly against perfect competitionWeigh efficiency loss against scale and innovation.Why it mattersA standard extended-response comparison.Very Hard
• 20Assessing the effectiveness of competition policyJudge enforcement, detection and penalties together.Why it mattersTests applied evaluation of real regulation.Very Hard
• 21Evaluating the stability of collusive agreementsJudge incentives to cheat against enforcement capacity.Why it mattersApplies game theory to a real problem.Very Hard
• 22Judging the regulation of a natural monopolyEvaluate price capping against public ownership.Why it mattersRequires comparison of policy alternatives.Very Hard
• 23Integrating market structure with efficiency and equityLink firm behaviour to consumer welfare outcomes.Why it mattersRewards synoptic microeconomic reasoning.Very Hard
• 24Constructing a full market structure evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Equity and equalityDistinguish fairness of outcome from identical outcomes.Why it mattersA distinction examiners test directly.Easy
• 2Income and wealthDistinguish a flow of earnings from a stock of assets.Why it mattersWealth inequality normally exceeds income inequality.Easy
• 3Sources of income inequalityIdentify skills, capital ownership and discrimination.Why it mattersExplains persistent gaps between social groups.Easy
• 4Market outcomes and distributionExplain that an efficient outcome need not be a fair one.Why it mattersThe central limitation of the price mechanism.Easy
• 5Factor markets and incomeExplain how wages and returns to capital are determined.Why it mattersExplains why some occupations pay far more than others.Easy
• 6The role of inherited wealthExplain how asset transfer perpetuates inequality.Why it mattersExplains persistence of inequality across generations.Easy

Medium — Applications

• 7Why inequality can persistExplain unequal access to education and to capital.Why it mattersExplains why markets do not equalise outcomes over time.Medium
• 8Discrimination in marketsExplain unequal treatment based on group characteristics.Why it mattersA recognised cause of wage differentials.Medium
• 9Market power and income sharesExplain how monopoly power raises returns to owners.Why it mattersLinks market structure directly to distribution.Medium
• 10Globalisation and inequalityExplain differing effects on skilled and unskilled workers.Why it mattersExplains rising inequality within many countries.Medium
• 11Technology and the wage premiumExplain rising returns to skilled labour.Why it mattersExplains widening gaps in developed economies.Medium
• 12Efficiency and equity trade-offsExplain how redistribution may affect work incentives.Why it mattersThe core tension in every policy response.Medium

Hard — Structured IB

• 13Analysing the limits of market allocationExamine why efficient markets can still produce poverty.Why it mattersJustifies redistributive government intervention.Hard
• 14Analysing the consequences of high inequalityExamine effects on growth, health and social cohesion.Why it mattersTurns a moral concern into an economic argument.Hard
• 15Analysing minimum wages and distributionExamine income gains against possible employment losses.Why it mattersA frequent applied policy question.Hard
• 16Analysing labour market reform and inequalityExamine unionisation, regulation and flexibility.Why it mattersExplains differing outcomes between countries.Hard
• 17Analysing intergenerational mobilityExamine how far outcomes depend on parental income.Why it mattersMeasures whether opportunity is genuinely equal.Hard
• 18Analysing measurement of inequalityExamine the use of income shares and ratios.Why it mattersPrepares you for measurement work in Unit 3.4.Hard

Very Hard — Integrated SL

• 19Evaluating whether markets can deliver equityJudge efficiency against distributional outcomes.Why it mattersThe central evaluative question of this topic.Very Hard
• 20Assessing the trade-off between equity and efficiencyWeigh redistribution against incentive effects.Why it mattersRequires genuinely balanced reasoning.Very Hard
• 21Evaluating the economic case for reducing inequalityJudge growth and cohesion arguments against evidence.Why it mattersMoves the argument beyond purely moral grounds.Very Hard
• 22Judging the causes of inequality in a named economyEvaluate competing explanations against the evidence.Why it mattersRewards applied rather than generic analysis.Very Hard
• 23Integrating distribution with government policyLink diagnosed causes of inequality to specific interventions.Why it mattersRewards a synoptic link forward into Unit 3.4.Very Hard
• 24Constructing a full evaluation of market fairnessBuild a structured argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1National incomeDefine the total value of output, income and expenditure in an economy.Why it mattersThe basis of all macroeconomic measurement.Easy
• 2The circular flow of incomeDescribe the flows of income between households and firms.Why it mattersThe foundational macroeconomic model.Easy
• 3Injections and withdrawalsIdentify investment, government spending, exports, saving, taxation and imports.Why it mattersDetermines whether national income expands or contracts.Easy
• 4Gross domestic productDefine the value of output produced within a country's borders.Why it mattersThe headline measure of economic activity.Easy
• 5Gross national incomeDefine GDP plus net income earned from abroad.Why it mattersBetter reflects income available to a country's residents.Easy
• 6The expenditure approach to GDPApply consumption plus investment plus government spending plus net exports.Why it mattersA guaranteed calculation in this course.Easy

Medium — Applications

• 7Nominal and real GDPDistinguish values measured at current and at constant prices.Why it mattersOnly real GDP measures a genuine change in output.Medium
• 8Calculating real GDP using a deflatorApply a price index to convert nominal values to real values.Why it mattersA standard quantitative task in the course.Medium
• 9GDP per capitaCalculate output per head of population.Why it mattersNecessary for comparing living standards across countries.Medium
• 10The business cycleIdentify expansion, peak, contraction and trough.Why it mattersFrames all discussion of macroeconomic policy.Medium
• 11Output gapsDistinguish actual output from potential output.Why it mattersDetermines whether policy should expand or restrain demand.Medium
• 12Purchasing power parityExplain adjustment for differences in national price levels.Why it mattersMakes international income comparisons meaningful.Medium

Hard — Structured IB

• 13Analysing the limitations of GDPExamine unpaid work, informal activity and distribution.Why it mattersPrevents equating GDP directly with well-being.Hard
• 14Analysing GDP and environmental costExamine the omission of resource depletion and pollution.Why it mattersThe basis of the sustainability critique of GDP.Hard
• 15Analysing alternative measures of well-beingExamine happiness indices and composite indicators.Why it mattersBroadens the assessment of living standards.Hard
• 16Analysing the OECD Better Life IndexExamine its multidimensional approach to welfare.Why it mattersA named alternative measure in the syllabus.Hard
• 17Analysing the Happy Planet IndexExamine well-being achieved per unit of resource use.Why it mattersConnects welfare measurement to sustainability.Hard
• 18Interpreting national income dataAnalyse trends from a table or chart of real GDP.Why it mattersA standard data-response task in Paper 2.Hard

Very Hard — Integrated SL

• 19Evaluating GDP as a measure of living standardsJudge its usefulness against its recognised omissions.Why it mattersOne of the most predictable extended-response questions.Very Hard
• 20Assessing alternative indicatorsWeigh richer measurement against comparability and data cost.Why it mattersPrevents uncritical praise of alternative measures.Very Hard
• 21Evaluating international income comparisonsJudge exchange rate, PPP and data quality problems.Why it mattersDetermines how far country rankings can be trusted.Very Hard
• 22Judging economic performance from dataReach a supported verdict using several indicators together.Why it mattersThe core data-response evaluative skill.Very Hard
• 23Integrating measurement with development analysisLink income measures to broader development indicators.Why it mattersRewards a synoptic link forward into Unit 4.8.Very Hard
• 24Constructing a full evaluation of economic performanceBuild a data-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Aggregate demandDefine total planned spending on domestic output at each price level.Why it mattersThe demand side of the whole economy.Easy
• 2Components of aggregate demandIdentify consumption, investment, government spending and net exports.Why it mattersThe basis of every AD shift explanation.Easy
• 3Why the AD curve slopes downwardsExplain the wealth, interest rate and international trade effects.Why it mattersJustifies the shape of the curve you draw.Easy
• 4Determinants of consumptionIdentify income, confidence, interest rates and wealth.Why it mattersThe largest single component of aggregate demand.Easy
• 5Determinants of investmentIdentify interest rates, business confidence and technology.Why it mattersThe most volatile component of aggregate demand.Easy
• 6Short-run aggregate supplyDefine total output supplied at each price level with fixed wages.Why it mattersThe short-run supply side of the model.Easy

Medium — Applications

• 7Shifts of the AD curveExplain how a change in each component shifts the curve.Why it mattersA guaranteed diagram skill in Paper 1.Medium
• 8Shifts of the SRAS curveExplain how input costs and supply shocks shift the curve.Why it mattersExplains cost-push inflation.Medium
• 9The monetarist long-run aggregate supply curveExplain a vertical curve at the full employment level of output.Why it mattersImplies demand policy affects only prices in the long run.Medium
• 10The Keynesian aggregate supply curveExplain three sections reflecting varying spare capacity.Why it mattersImplies demand policy can raise output below full employment.Medium
• 11Short-run macroeconomic equilibriumIdentify the intersection of AD and SRAS.Why it mattersThe starting point of every macroeconomic diagram.Medium
• 12Determinants of long-run productive capacityExplain the quantity and quality of factors of production.Why it mattersExplains outward shifts of the LRAS curve.Medium

Hard — Structured IB

• 13Analysing a demand-side shockExamine the effects on price level and real output.Why it mattersA guaranteed extended-response diagram.Hard
• 14Analysing a supply-side shockExamine the effects on price level and real output.Why it mattersExplains episodes of stagflation.Hard
• 15Analysing deflationary and inflationary gapsExamine equilibrium below and above full employment.Why it mattersDetermines the appropriate policy response.Hard
• 16Comparing Keynesian and monetarist adjustmentAnalyse differing beliefs about market self-correction.Why it mattersThe central macroeconomic policy debate.Hard
• 17Analysing the multiplier effect on ADExamine how an initial injection generates a larger income change.Why it mattersExplains the size of fiscal policy effects.Hard
• 18Analysing sustained economic growthExamine LRAS shifts as the source of long-run growth.Why it mattersDistinguishes actual growth from potential growth.Hard

Very Hard — Integrated SL

• 19Evaluating the Keynesian model against the monetarist modelJudge assumptions and policy implications together.Why it mattersA recurring extended-response comparison.Very Hard
• 20Assessing whether the economy self-correctsWeigh wage flexibility evidence against persistent recessions.Why it mattersDetermines the case for active intervention.Very Hard
• 21Evaluating the AD-AS model as a toolJudge its simplifications against its explanatory power.Why it mattersRequired for full evaluation of the model.Very Hard
• 22Judging the appropriate policy from a diagramEvaluate the correct response to a given macroeconomic gap.Why it mattersCombines diagram work with policy reasoning.Very Hard
• 23Integrating AD-AS with monetary and fiscal policyLink diagram shifts to specific policy instruments.Why it mattersRewards synoptic macroeconomic reasoning.Very Hard
• 24Constructing a full AD-AS evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Economic growthDefine an increase in real output over a period of time.Why it mattersA primary objective of every government.Easy
• 2Actual and potential growthDistinguish using existing capacity from raising that capacity.Why it mattersDetermines whether AD or LRAS policy is needed.Easy
• 3UnemploymentDefine people willing and able to work but without a job.Why it mattersA core indicator of macroeconomic performance.Easy
• 4Calculating the unemployment rateApply the unemployed as a percentage of the labour force.Why it mattersA guaranteed quantitative skill in this course.Easy
• 5Inflation, disinflation and deflationDistinguish rising, slowing and falling price levels.Why it mattersPrecise terminology here is tested directly.Easy
• 6Measuring inflation with a price indexExplain the construction of a consumer price index.Why it mattersThe basis of all inflation calculations.Easy

Medium — Applications

• 7Types of unemploymentExplain structural, frictional, seasonal and cyclical unemployment.Why it mattersDetermines which policy remedy is appropriate.Medium
• 8Costs of unemploymentExplain the economic, social and fiscal consequences.Why it mattersThe case for prioritising employment objectives.Medium
• 9Demand-pull inflationExplain price rises caused by excess aggregate demand.Why it mattersDiagnosed using an AD shift diagram.Medium
• 10Cost-push inflationExplain price rises caused by rising production costs.Why it mattersDiagnosed using a SRAS shift diagram.Medium
• 11Costs of inflation and deflationExplain effects on saving, investment and competitiveness.Why it mattersExplains why price stability is a policy objective.Medium
• 12Sustainable government debtExplain debt levels manageable relative to national income.Why it mattersA stated macroeconomic objective in the syllabus.Medium

Hard — Structured IB

• 13Analysing limitations of the unemployment rateExamine hidden unemployment and underemployment.Why it mattersPrevents overconfident use of headline data.Hard
• 14Analysing limitations of the consumer price indexExamine basket composition and quality change.Why it mattersDetermines the reliability of inflation data.Hard
• 15Analysing the conflict between growth and inflationExamine demand expansion against price stability.Why it mattersThe classic macroeconomic policy trade-off.Hard
• 16Analysing the conflict between unemployment and inflationExamine the short-run Phillips curve relationship.Why it mattersExplains constraints on demand-side policy.Hard
• 17Analysing growth against environmental sustainabilityExamine resource use and emissions from expansion.Why it mattersConnects macro goals to sustainability.Hard
• 18Analysing the debt-to-GDP ratioExamine what causes the ratio to rise and fall.Why it mattersAssesses the sustainability of fiscal policy.Hard

Very Hard — Integrated SL

• 19Evaluating conflicts between macroeconomic objectivesJudge which objective should take priority.Why it mattersA recurring extended-response question.Very Hard
• 20Assessing the costs of unemployment against inflationWeigh the relative harm caused by each.Why it mattersDetermines the appropriate policy stance.Very Hard
• 21Evaluating whether growth improves living standardsJudge distribution and sustainability alongside output.Why it mattersPrevents equating growth directly with welfare.Very Hard
• 22Judging the sustainability of a country's debtEvaluate the ratio, interest costs and growth prospects.Why it mattersAn applied fiscal evaluation task.Very Hard
• 23Integrating macro objectives with policy choiceLink the prioritised objective to a specific policy.Why it mattersRewards synoptic macroeconomic reasoning.Very Hard
• 24Constructing a full evaluation of macroeconomic performanceBuild a data-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Absolute povertyDefine income below a fixed subsistence threshold.Why it mattersUsed in international poverty comparisons.Easy
• 2Relative povertyDefine income low compared with the national average.Why it mattersUsed in developed country policy debate.Easy
• 3The international poverty lineIdentify the fixed daily income benchmark.Why it mattersThe standard measure of extreme global poverty.Easy
• 4The Lorenz curveDefine a diagram showing the cumulative distribution of income.Why it mattersThe visual representation of inequality.Easy
• 5The Gini coefficientDefine a single numerical measure of income inequality.Why it mattersAllows comparison of inequality across countries.Easy
• 6Causes of povertyIdentify unemployment, low pay, illness and lack of education.Why it mattersDetermines the appropriate policy response.Easy

Medium — Applications

• 7Interpreting a Lorenz curveExplain what distance from the line of equality represents.Why it mattersA standard data-response diagram.Medium
• 8Interpreting Gini coefficient valuesExplain what values near zero and near one represent.Why it mattersEnables comparison between economies.Medium
• 9Progressive, proportional and regressive taxationDistinguish how the average tax rate changes with income.Why it mattersDetermines the redistributive effect of a tax.Medium
• 10Calculating average and marginal tax ratesApply the relevant formulas to given income data.Why it mattersA guaranteed quantitative skill in this course.Medium
• 11Transfer paymentsExplain benefits paid without a corresponding output.Why it mattersThe most direct redistributive instrument.Medium
• 12Provision of merit goods as redistributionExplain healthcare and education as income in kind.Why it mattersRedistributes opportunity as well as income.Medium

Hard — Structured IB

• 13Analysing the effect of progressive taxation on inequalityExamine changes in post-tax income distribution.Why it mattersMeasures the impact of the policy directly.Hard
• 14Analysing the difficulty of measuring povertyExamine thresholds, informal income and data quality.Why it mattersDetermines confidence in the reported figures.Hard
• 15Analysing multidimensional povertyExamine health, education and living standards together.Why it mattersA richer measure than income alone.Hard
• 16Analysing the trade-off between equity and incentivesExamine the effects of high tax rates on effort.Why it mattersThe core objection to redistribution.Hard
• 17Analysing minimum wage policy for poverty reductionExamine income gains against employment effects.Why it mattersA frequent applied policy question.Hard
• 18Analysing universal basic incomeExamine simplicity, cost and incentive effects.Why it mattersA contemporary policy proposal in the syllabus.Hard

Very Hard — Integrated SL

• 19Evaluating taxation policies to reduce inequalityWeigh redistribution against incentives and avoidance.Why it mattersA standard extended-response question.Very Hard
• 20Assessing the Gini coefficient as a measureJudge simplicity against the loss of distributional detail.Why it mattersPrevents overreliance on a single number.Very Hard
• 21Evaluating transfer payments against merit good provisionJudge cash transfers against in-kind redistribution.Why it mattersRequires comparison of policy alternatives.Very Hard
• 22Judging poverty reduction policy in a named economyEvaluate a specific programme against the evidence.Why it mattersRewards applied rather than generic evaluation.Very Hard
• 23Integrating inequality policy with growth objectivesLink redistribution to long-run economic performance.Why it mattersRewards synoptic macroeconomic reasoning.Very Hard
• 24Constructing a full evaluation of redistribution policyBuild a data-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Monetary policyDefine central bank management of interest rates and the money supply.Why it mattersThe main short-run demand management tool.Easy
• 2Goals of monetary policyIdentify low inflation, growth and employment objectives.Why it mattersDetermines the direction of interest rate changes.Easy
• 3The role of the central bankExplain independence and responsibility for price stability.Why it mattersExplains why rates are not set directly by politicians.Easy
• 4Interest ratesDefine the price of borrowing and the reward for saving.Why it mattersThe main instrument of monetary policy.Easy
• 5Expansionary monetary policyExplain lowering interest rates to raise aggregate demand.Why it mattersThe standard response to a recession.Easy
• 6Contractionary monetary policyExplain raising interest rates to reduce aggregate demand.Why it mattersThe standard response to high inflation.Easy

Medium — Applications

• 7The transmission mechanismExplain how rate changes affect consumption and investment.Why it mattersConnects the instrument to the AD diagram.Medium
• 8Interest rates and the exchange rateExplain effects on capital flows and currency value.Why it mattersAdds a net export channel to the mechanism.Medium
• 9Quantitative easingExplain central bank asset purchases to raise the money supply.Why it mattersUsed when interest rates approach zero.Medium
• 10Inflation targetingExplain the use of an explicit published inflation target.Why it mattersThe framework used by most modern central banks.Medium
• 11Minimum reserve requirementsExplain rules governing bank lending capacity.Why it mattersA less commonly used monetary instrument.Medium
• 12Monetary policy on an AD-AS diagramDraw the resulting shift and equilibrium change.Why it mattersA guaranteed diagram in Paper 1.Medium

Hard — Structured IB

• 13Analysing time lags in monetary policyExamine recognition, decision and effect lags.Why it mattersExplains why policy can arrive too late to help.Hard
• 14Analysing the liquidity trapExamine policy ineffectiveness when rates are near zero.Why it mattersExplains the turn towards quantitative easing.Hard
• 15Analysing the effect on borrowers and saversExamine the distributional consequences of rate changes.Why it mattersAdds an equity dimension to policy analysis.Hard
• 16Analysing central bank independenceExamine credibility and its effect on inflation expectations.Why it mattersExplains why independence tends to lower inflation.Hard
• 17Analysing monetary policy in an open economyExamine constraints imposed by exchange rate objectives.Why it mattersExplains policy conflicts in fixed-rate regimes.Hard
• 18Analysing the effect of expectations on policyExamine how anticipated inflation changes behaviour.Why it mattersDetermines whether policy achieves its target.Hard

Very Hard — Integrated SL

• 19Evaluating monetary policy for controlling inflationWeigh flexibility and speed against lags and limits.Why it mattersA standard extended-response question.Very Hard
• 20Assessing monetary policy in a deep recessionJudge effectiveness when confidence is very low.Why it mattersExplains the case for fiscal support instead.Very Hard
• 21Evaluating quantitative easingWeigh demand support against asset price and equity effects.Why it mattersRequires balanced treatment of a recent policy.Very Hard
• 22Judging the appropriate stance from dataEvaluate the correct policy given inflation and output data.Why it mattersA standard data-response evaluative task.Very Hard
• 23Integrating monetary with fiscal policyLink the two tools within one coordinated argument.Why it mattersRewards synoptic macroeconomic reasoning.Very Hard
• 24Constructing a full monetary policy evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Fiscal policyDefine the use of government spending and taxation to influence demand.Why it mattersThe main alternative to monetary policy.Easy
• 2Sources of government revenueIdentify direct taxes, indirect taxes and other receipts.Why it mattersDetermines the capacity to fund public spending.Easy
• 3Types of government expenditureIdentify current, capital and transfer spending.Why it mattersDifferent types have very different long-run effects.Easy
• 4Budget outcomesDistinguish a deficit, a surplus and a balanced budget.Why it mattersDescribes the fiscal stance in a single figure.Easy
• 5Expansionary fiscal policyExplain raising spending or cutting taxes to boost demand.Why it mattersThe standard response to a recession.Easy
• 6Contractionary fiscal policyExplain cutting spending or raising taxes to restrain demand.Why it mattersThe standard response to inflationary pressure.Easy

Medium — Applications

• 7The Keynesian multiplierExplain how an injection creates a larger total income change.Why it mattersDetermines the full effect of any fiscal change.Medium
• 8Calculating the multiplierApply the formula using the marginal propensity to withdraw.Why it mattersA guaranteed quantitative skill in this course.Medium
• 9Automatic stabilisersExplain how taxes and benefits moderate the cycle automatically.Why it mattersDampens recessions without any new decision.Medium
• 10Discretionary fiscal policyExplain deliberate changes to spending and taxation.Why it mattersDistinguished from automatic stabiliser effects.Medium
• 11Fiscal policy on an AD-AS diagramDraw the resulting shift and equilibrium change.Why it mattersA guaranteed diagram in Paper 1.Medium
• 12Government debt and deficitsDistinguish the annual flow from the accumulated stock.Why it mattersA distinction examiners test directly.Medium

Hard — Structured IB

• 13Analysing crowding outExamine reduced private investment caused by government borrowing.Why it mattersA central objection to expansionary fiscal policy.Hard
• 14Analysing time lags in fiscal policyExamine political and implementation delays.Why it mattersExplains why fiscal responses arrive slowly.Hard
• 15Analysing the effect of the multiplier sizeExamine how leakages reduce the total impact.Why it mattersDetermines the true cost-effectiveness of stimulus.Hard
• 16Analysing fiscal policy and long-run capacityExamine the effects of infrastructure and education spending.Why it mattersLinks demand policy to supply-side outcomes.Hard
• 17Analysing austerity policyExamine deficit reduction effects on output and employment.Why it mattersA contested contemporary policy debate.Hard
• 18Analysing constraints on fiscal policyExamine debt levels, credit ratings and political limits.Why it mattersExplains why some governments cannot expand spending.Hard

Very Hard — Integrated SL

• 19Evaluating fiscal policy for closing a deflationary gapWeigh output gains against debt and time lags.Why it mattersA standard extended-response question.Very Hard
• 20Assessing fiscal against monetary policyJudge speed, targeting and effectiveness together.Why it mattersRequires direct comparison of the two tools.Very Hard
• 21Evaluating the significance of crowding outJudge the argument against evidence and conditions.Why it mattersPrevents accepting the objection uncritically.Very Hard
• 22Judging the sustainability of a fiscal stanceEvaluate deficits and debt against growth prospects.Why it mattersAn applied data-response evaluation.Very Hard
• 23Integrating fiscal policy with supply-side objectivesLink spending choices to long-run productive capacity.Why it mattersRewards a synoptic link forward into Unit 3.7.Very Hard
• 24Constructing a full fiscal policy evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Supply-side policiesDefine measures intended to raise long-run productive capacity.Why it mattersThe only route to sustained non-inflationary growth.Easy
• 2Market-based supply-side policiesIdentify measures increasing competition and incentives.Why it mattersRely on market forces rather than direct provision.Easy
• 3Interventionist supply-side policiesIdentify direct government investment in productive capacity.Why it mattersRely on the state to correct market shortfalls.Easy
• 4Investment in education and trainingExplain raising the quality of human capital.Why it mattersRaises labour productivity over the long run.Easy
• 5Investment in infrastructureExplain improving transport, energy and communications.Why it mattersLowers costs across the whole economy.Easy
• 6Supply-side policy on an AD-AS diagramDraw an outward LRAS shift and its effects.Why it mattersA guaranteed Paper 1 diagram.Easy

Medium — Applications

• 7Labour market reformExplain reduced regulation and changed union power.Why it mattersIntended to raise employment and labour flexibility.Medium
• 8Tax reform as a supply-side measureExplain lower rates intended to raise work incentives.Why it mattersA core market-based supply-side policy.Medium
• 9DeregulationExplain removing rules that restrict competition.Why it mattersIntended to lower costs and raise efficiency.Medium
• 10PrivatisationExplain transferring state assets to private ownership.Why it mattersIntended to raise productive efficiency.Medium
• 11Research and development incentivesExplain support for innovation and new technology.Why it mattersRaises capacity through technological progress.Medium
• 12Industrial policyExplain targeted government support for strategic sectors.Why it mattersAn interventionist route to capacity growth.Medium

Hard — Structured IB

• 13Analysing effects on growth and inflationExamine higher output combined with downward price pressure.Why it mattersThe key advantage over demand-side policy.Hard
• 14Analysing the time horizon of supply-side policyExamine the long delays before effects appear.Why it mattersExplains political reluctance to rely on it alone.Hard
• 15Analysing the cost of interventionist policiesExamine opportunity cost and funding requirements.Why it mattersPrevents treating public investment as costless.Hard
• 16Analysing equity effects of market-based policiesExamine consequences for wages and job security.Why it mattersAdds a distributional dimension to the analysis.Hard
• 17Analysing supply-side policy in developing economiesExamine constraints on finance and institutions.Why it mattersLinks to obstacles to development in Unit 4.Hard
• 18Analysing complementarity with demand-side policyExamine how the two approaches interact.Why it mattersExplains why governments use a mix of policies.Hard

Very Hard — Integrated SL

• 19Evaluating market-based against interventionist policiesWeigh efficiency against equity and reliability.Why it mattersA recurring extended-response comparison.Very Hard
• 20Assessing the effectiveness of labour market reformJudge employment gains against insecurity and inequality.Why it mattersRequires balanced treatment of a contested policy.Very Hard
• 21Evaluating supply-side policy for a named economyJudge a specific programme against the evidence.Why it mattersRewards applied rather than generic evaluation.Very Hard
• 22Judging the best policy mix for sustained growthEvaluate demand-side and supply-side measures together.Why it mattersTests prioritisation across the whole macro unit.Very Hard
• 23Integrating supply-side policy with development strategyLink capacity building to long-run development.Why it mattersRewards a synoptic link forward into Unit 4.10.Very Hard
• 24Constructing a full supply-side evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1International tradeDefine the exchange of goods and services across national borders.Why it mattersThe foundation of the whole international unit.Easy
• 2Free tradeDefine trade conducted without government-imposed barriers.Why it mattersThe benchmark against which protection is judged.Easy
• 3SpecialisationDefine concentrating production on particular goods or services.Why it mattersThe source of all gains from trade.Easy
• 4Absolute advantageDefine producing more output from the same quantity of resources.Why it mattersThe simplest explanation of trade patterns.Easy
• 5Comparative advantageDefine producing a good at a lower opportunity cost.Why it mattersThe core theoretical case for international trade.Easy
• 6Benefits of free tradeIdentify lower prices, greater choice and efficiency gains.Why it mattersThe standard list required in any trade question.Easy

Medium — Applications

• 7Calculating opportunity cost ratiosCompute relative costs from an output table.Why it mattersA guaranteed quantitative task in this topic.Medium
• 8Identifying comparative advantage from dataDetermine which country should specialise in which good.Why it mattersThe standard applied version of the theory.Medium
• 9Gains from trade using a PPC diagramShow consumption beyond the domestic production frontier.Why it mattersConnects trade theory back to the Unit 1 diagram.Medium
• 10Trade and economies of scaleExplain access to larger markets lowering unit costs.Why it mattersA dynamic gain beyond static efficiency.Medium
• 11Trade and competitionExplain imported competition disciplining domestic firms.Why it mattersLinks trade policy directly to market structure.Medium
• 12Assumptions of comparative advantage theoryIdentify constant costs, no transport costs and perfect mobility.Why it mattersDetermines the limits of the theory's conclusion.Medium

Hard — Structured IB

• 13Analysing the limitations of comparative advantageExamine transport costs, immobility and changing advantage.Why it mattersRequired before applying the theory to reality.Hard
• 14Analysing the distribution of gains from tradeExamine why some groups lose from liberalisation.Why it mattersExplains political resistance to free trade.Hard
• 15Analysing trade and structural unemploymentExamine job losses in uncompetitive domestic industries.Why it mattersA key cost of specialisation.Hard
• 16Analysing over-specialisation riskExamine dependence on a narrow range of exports.Why it mattersExplains vulnerability among commodity exporters.Hard
• 17Analysing dynamic comparative advantageExamine how advantage can be created over time.Why it mattersJustifies infant industry and industrial policy.Hard
• 18Analysing trade and the terms of tradeExamine export prices relative to import prices.Why it mattersDetermines how gains are shared between countries.Hard

Very Hard — Integrated SL

• 19Evaluating the case for free tradeWeigh efficiency gains against distributional costs.Why it mattersThe central evaluative question of the topic.Very Hard
• 20Assessing comparative advantage as an explanationJudge the theory against observed trade patterns.Why it mattersTests critical use of a core model.Very Hard
• 21Evaluating specialisation for a developing economyJudge commodity dependence against diversification.Why it mattersLinks trade theory to development strategy.Very Hard
• 22Judging the winners and losers from liberalisationEvaluate effects on consumers, firms and workers.Why it mattersStandard structure for extended responses.Very Hard
• 23Integrating trade theory with development policyLink comparative advantage to growth strategies.Why it mattersRewards a synoptic link forward into Unit 4.10.Very Hard
• 24Constructing a full evaluation of trade gainsBuild a structured argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Trade protectionDefine government measures that restrict imports.Why it mattersThe policy alternative to free trade.Easy
• 2TariffsDefine taxes imposed on imported goods.Why it mattersThe most commonly examined trade barrier.Easy
• 3Import quotasDefine quantitative limits placed on imports.Why it mattersRestricts volume rather than raising price directly.Easy
• 4Export subsidiesDefine payments to domestic producers selling abroad.Why it mattersLowers export prices artificially below cost.Easy
• 5Administrative barriersIdentify standards, paperwork and inspection requirements.Why it mattersRestricts trade without any explicit tariff.Easy
• 6Diagram of a tariffDraw the world price line and the effect of the tariff.Why it mattersA guaranteed Paper 1 diagram.Easy

Medium — Applications

• 7Effects of a tariff on price and quantityExplain higher price, higher domestic output and fewer imports.Why it mattersThe core reading of the tariff diagram.Medium
• 8Calculating tariff revenueCompute the rectangle representing government revenue.Why it mattersA standard quantitative task in the course.Medium
• 9Calculating welfare loss from a tariffCompute the two efficiency loss triangles.Why it mattersA guaranteed higher-mark calculation.Medium
• 10Diagram of an import quotaDraw the restricted quantity and the resulting price.Why it mattersA guaranteed Paper 1 diagram.Medium
• 11Effects of an export subsidyExplain domestic and world market consequences.Why it mattersExplains disputes over agricultural support.Medium
• 12Stakeholder effects of protectionExplain outcomes for consumers, producers and government.Why it mattersStructures every protection evaluation.Medium

Hard — Structured IB

• 13Analysing the welfare effects of a tariffExamine surplus changes and the resulting deadweight loss.Why it mattersThe core efficiency argument against tariffs.Hard
• 14Comparing tariffs with quotasAnalyse revenue, price effects and administration.Why it mattersA frequent comparison question in Paper 1.Hard
• 15Analysing retaliation and trade warsExamine escalating protection between trading partners.Why it mattersExplains recent global trade disputes.Hard
• 16Analysing protection and domestic efficiencyExamine the reduced pressure to lower costs.Why it mattersA long-run cost of shielding industries.Hard
• 17Analysing the effect of protection on exportersExamine consequences for foreign producer countries.Why it mattersLinks protection directly to development outcomes.Hard
• 18Analysing administrative barriersExamine their disguised but genuinely restrictive effect.Why it mattersExplains why tariff data understates real protection.Hard

Very Hard — Integrated SL

• 19Evaluating a tariff as a policy toolWeigh protection and revenue against efficiency loss.Why it mattersA standard extended-response question.Very Hard
• 20Assessing quotas against tariffsJudge which better serves a stated policy objective.Why it mattersRequires direct comparison with diagram support.Very Hard
• 21Evaluating protection for a named industryJudge one specific case against the evidence.Why it mattersRewards applied rather than generic evaluation.Very Hard
• 22Judging the effect of protection on consumersEvaluate the price and choice consequences.Why it mattersAdds a distributional dimension to efficiency analysis.Very Hard
• 23Integrating protection analysis with trade theoryLink barriers to the loss of comparative advantage gains.Why it mattersRewards synoptic international reasoning.Very Hard
• 24Constructing a full protection evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1The infant industry argumentExplain temporary protection for newly established industries.Why it mattersThe most economically respected case for protection.Easy
• 2Protection of employmentExplain restricting imports to preserve domestic jobs.Why it mattersThe most politically common argument for protection.Easy
• 3Protection of strategic industriesExplain safeguarding food, energy and defence supply.Why it mattersA national security justification for barriers.Easy
• 4Anti-dumping measuresExplain responses to goods sold below their cost of production.Why it mattersA recognised legal justification for tariffs.Easy
• 5Government revenue from tariffsExplain protection as a source of tax income.Why it mattersSignificant in some developing economies.Easy
• 6Arguments for freer tradeIdentify efficiency, choice, competition and growth.Why it mattersThe counter-case required in every evaluation.Easy

Medium — Applications

• 7Diversification argument for protectionExplain reducing dependence on a narrow export base.Why it mattersRelevant to commodity-dependent economies.Medium
• 8Protection against unfair competitionExplain responses to foreign government subsidies.Why it mattersDistinguishes fair from unfair trade claims.Medium
• 9Environmental and labour standards argumentsExplain protection justified on regulatory grounds.Why it mattersA contemporary justification for trade barriers.Medium
• 10Consequences of protection for consumersExplain higher prices and reduced choice.Why it mattersThe most direct cost of any trade barrier.Medium
• 11Consequences of protection for producersExplain gains for protected firms and losses for importers.Why it mattersExplains lobbying for and against barriers.Medium
• 12Consequences of protection for the economyExplain efficiency loss and misallocated resources.Why it mattersThe macroeconomic cost of protection.Medium

Hard — Structured IB

• 13Analysing the infant industry argument criticallyExamine the difficulty of removing protection later.Why it mattersExplains why temporary barriers become permanent.Hard
• 14Analysing employment protection claimsExamine offsetting job losses elsewhere in the economy.Why it mattersPrevents accepting the jobs argument uncritically.Hard
• 15Analysing protection and long-run competitivenessExamine the reduced incentive to innovate.Why it mattersA key dynamic cost of protection.Hard
• 16Analysing the effect of protection on developing economiesExamine barriers facing their exports abroad.Why it mattersLinks trade policy directly to development.Hard
• 17Analysing the political economy of protectionExamine concentrated benefits against dispersed costs.Why it mattersExplains why inefficient barriers survive politically.Hard
• 18Analysing protection during economic downturnsExamine the temptation to restrict imports in recession.Why it mattersExplains the historical pattern of trade wars.Hard

Very Hard — Integrated SL

• 19Evaluating the case for protecting an infant industryWeigh future competitiveness against present cost.Why it mattersA standard extended-response question.Very Hard
• 20Assessing whether protection saves jobsJudge the claim against evidence and offsetting losses.Why it mattersTests critical evaluation of a popular argument.Very Hard
• 21Evaluating protection against freer trade for a named economyJudge the balance using country-specific evidence.Why it mattersRewards applied rather than generic evaluation.Very Hard
• 22Judging the legitimacy of environmental trade barriersEvaluate genuine standards against disguised protection.Why it mattersRaises a contested contemporary issue.Very Hard
• 23Integrating the protection debate with development strategyLink barriers to industrialisation strategies.Why it mattersRewards a synoptic link forward into Unit 4.10.Very Hard
• 24Constructing a full evaluation of trade protectionBuild a balanced argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Economic integrationDefine increasing economic cooperation between countries.Why it mattersThe framework for all trading bloc analysis.Easy
• 2Preferential trade agreementsDefine reduced barriers between selected partner countries.Why it mattersThe lowest level of formal integration.Easy
• 3Free trade areasDefine removal of internal barriers with independent external tariffs.Why it mattersA common form of regional agreement.Easy
• 4Customs unionsDefine free internal trade combined with a common external tariff.Why it mattersAdds a shared external trade policy.Easy
• 5Common marketsDefine customs unions with free movement of factors of production.Why it mattersAdds labour and capital mobility.Easy
• 6Monetary unionDefine a shared currency and a single monetary policy.Why it mattersThe deepest form of economic integration.Easy

Medium — Applications

• 7Trade creationExplain the shift to lower-cost partner producers.Why it mattersThe main efficiency benefit of integration.Medium
• 8Trade diversionExplain the shift away from lower-cost outside producers.Why it mattersThe main efficiency cost of integration.Medium
• 9Benefits of joining a trading blocExplain market access, economies of scale and investment.Why it mattersThe economic case for membership.Medium
• 10Costs of joining a trading blocExplain lost policy autonomy and adjustment costs.Why it mattersThe economic case against membership.Medium
• 11The World Trade OrganizationExplain its role in negotiating and enforcing trade rules.Why it mattersThe main institution governing global trade.Medium
• 12Dispute settlement in the WTOExplain the process for resolving trade conflicts.Why it mattersExplains how retaliation is formally constrained.Medium

Hard — Structured IB

• 13Analysing trade creation against trade diversionExamine the net welfare effect of a customs union.Why it mattersThe central analytical task of this topic.Hard
• 14Analysing the loss of monetary independenceExamine the constraint of a single shared interest rate.Why it mattersExplains asymmetric shocks in monetary unions.Hard
• 15Analysing fiscal constraints in monetary unionExamine rules limiting member deficits and debt.Why it mattersExplains crises within single currency areas.Hard
• 16Analysing labour mobility in a common marketExamine effects on wages and employment.Why it mattersA politically contested consequence of integration.Hard
• 17Analysing the effectiveness of the WTOExamine its enforcement powers and member compliance.Why it mattersDetermines whether the rules actually bind.Hard
• 18Analysing regionalism against multilateralismExamine whether blocs help or hinder global trade.Why it mattersA recurring conceptual debate in the syllabus.Hard

Very Hard — Integrated SL

• 19Evaluating membership of a trading blocWeigh market access against lost policy autonomy.Why it mattersA standard extended-response question.Very Hard
• 20Assessing the net effect of a customs unionJudge trade creation against diversion with evidence.Why it mattersRequires balanced quantitative reasoning.Very Hard
• 21Evaluating monetary union for a member economyJudge stability gains against policy inflexibility.Why it mattersApplies theory to a real institutional choice.Very Hard
• 22Judging the role of the WTO in global tradeEvaluate its achievements against its limitations.Why it mattersTests balanced institutional assessment.Very Hard
• 23Integrating integration analysis with trade theoryLink bloc membership to comparative advantage gains.Why it mattersRewards synoptic international reasoning.Very Hard
• 24Constructing a full integration evaluationBuild a structured argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Exchange rateDefine the price of one currency expressed in terms of another.Why it mattersDetermines the price of every internationally traded good.Easy
• 2Appreciation and depreciationDefine a rise and a fall in a floating currency's value.Why it mattersPrecise terminology here is tested directly.Easy
• 3Revaluation and devaluationDefine deliberate changes made under a fixed system.Why it mattersDistinguished from market-driven movements.Easy
• 4Floating exchange rate systemsDefine currency values set purely by supply and demand.Why it mattersThe system used by most major economies.Easy
• 5Fixed exchange rate systemsDefine currency values pegged and defended by the central bank.Why it mattersRequires substantial foreign exchange reserves.Easy
• 6Managed exchange rate systemsDefine floating rates with occasional official intervention.Why it mattersThe most common system used in practice.Easy

Medium — Applications

• 7Demand for a currencyExplain exports, investment inflows and speculation.Why it mattersThe demand side of the currency diagram.Medium
• 8Supply of a currencyExplain imports, investment outflows and speculation.Why it mattersThe supply side of the currency diagram.Medium
• 9Drawing an exchange rate diagramConstruct currency supply and demand with equilibrium.Why it mattersA guaranteed Paper 1 diagram.Medium
• 10Causes of currency appreciationExplain rising demand for or falling supply of the currency.Why it mattersThe basis of every exchange rate explanation.Medium
• 11Effects of appreciation on tradeExplain cheaper imports and more expensive exports.Why it mattersDetermines the effect on the current account.Medium
• 12Calculating exchange rate conversionsConvert values accurately between two currencies.Why it mattersA guaranteed quantitative skill in this course.Medium

Hard — Structured IB

• 13Analysing the effect of interest rates on the exchange rateExamine capital flows responding to rate changes.Why it mattersLinks monetary policy directly to the currency.Hard
• 14Analysing the effect of exchange rates on inflationExamine imported cost pressures from depreciation.Why it mattersExplains a key constraint on currency policy.Hard
• 15Analysing the effect on domestic employmentExamine export competitiveness and job creation.Why it mattersExplains political interest in a weaker currency.Hard
• 16Analysing central bank interventionExamine the use of reserves and interest rate defence.Why it mattersExplains how a fixed rate is actually maintained.Hard
• 17Analysing speculative attacks on a currencyExamine pressure placed on unsustainable pegs.Why it mattersExplains historical currency crises.Hard
• 18Analysing exchange rate effects on developing economiesExamine debt denominated in foreign currency.Why it mattersA significant development vulnerability.Hard

Very Hard — Integrated SL

• 19Evaluating fixed against floating exchange ratesWeigh certainty against independent monetary policy.Why it mattersA recurring extended-response comparison.Very Hard
• 20Assessing the effects of depreciation on an economyJudge competitiveness gains against inflation risk.Why it mattersRequires balanced two-sided reasoning.Very Hard
• 21Evaluating central bank interventionJudge effectiveness against reserve and credibility costs.Why it mattersApplies theory to real policy decisions.Very Hard
• 22Judging the appropriate system for a named economyEvaluate the choice using country-specific evidence.Why it mattersRewards applied rather than generic evaluation.Very Hard
• 23Integrating exchange rates with the balance of paymentsLink currency movements to external balances.Why it mattersRewards a synoptic link forward into Unit 4.6.Very Hard
• 24Constructing a full exchange rate evaluationBuild a diagram-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1The balance of paymentsDefine the record of transactions with the rest of the world.Why it mattersThe framework for all external sector analysis.Easy
• 2The current accountIdentify trade in goods, trade in services, income and transfers.Why it mattersThe most closely watched external balance.Easy
• 3The capital accountIdentify capital transfers and non-produced assets.Why it mattersThe smallest component of the accounts.Easy
• 4The financial accountIdentify direct, portfolio and reserve asset flows.Why it mattersRecords the financing of the current account.Easy
• 5Current account deficit and surplusDefine outflows exceeding inflows and the reverse.Why it mattersThe headline external imbalance measure.Easy
• 6The balance of payments identityExplain why the accounts must sum to zero overall.Why it mattersA relationship examiners test directly.Easy

Medium — Applications

• 7Calculating the current account balanceCompute the balance from given component data.Why it mattersA guaranteed quantitative task in this course.Medium
• 8Causes of a current account deficitExplain competitiveness, growth and exchange rate factors.Why it mattersDetermines the appropriate policy response.Medium
• 9Consequences of a persistent deficitExplain borrowing, asset sales and currency pressure.Why it mattersThe case for taking policy action.Medium
• 10Consequences of a persistent surplusExplain appreciation pressure and trading partner tension.Why it mattersShows surpluses also carry real costs.Medium
• 11Link between exchange rates and the current accountExplain how currency movements alter external balances.Why it mattersConnects Unit 4.5 directly to Unit 4.6.Medium
• 12Expenditure switching and reducing policiesExplain the two main approaches to correcting a deficit.Why it mattersThe standard policy toolkit for imbalances.Medium

Hard — Structured IB

• 13The Marshall-Lerner conditionAnalyse when a depreciation improves the current account.Why it mattersDetermines whether devaluation actually works.Hard
• 14The J-curve effectAnalyse the delayed improvement following a depreciation.Why it mattersExplains short-run worsening before recovery.Hard
• 15Analysing elasticity and external balanceExamine how PED for exports and imports matters.Why it mattersRewards a synoptic link back to Unit 2.5.Hard
• 16Analysing deficits in developing economiesExamine reliance on primary exports and imported capital.Why it mattersLinks external balance to development constraints.Hard
• 17Analysing the sustainability of a deficitExamine the financing sources and their durability.Why it mattersDistinguishes benign from genuinely dangerous deficits.Hard
• 18Analysing policy responses to a deficitExamine demand management and supply-side options.Why it mattersStructures every correction evaluation.Hard

Very Hard — Integrated SL

• 19Evaluating depreciation as a correction for a deficitWeigh competitiveness gains against inflation and lags.Why it mattersA standard extended-response question.Very Hard
• 20Assessing whether a current account deficit is a problemJudge financing, cause and duration together.Why it mattersPrevents an automatic negative verdict.Very Hard
• 21Evaluating expenditure switching against reducing policiesJudge effectiveness and side effects of each approach.Why it mattersRequires direct comparison of two policy routes.Very Hard
• 22Judging external balance from dataEvaluate a country's position using account figures.Why it mattersA standard data-response evaluative task.Very Hard
• 23Integrating balance of payments with exchange rate policyLink external correction to the currency system chosen.Why it mattersRewards synoptic international reasoning.Very Hard
• 24Constructing a full balance of payments evaluationBuild a data-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Sustainable developmentDefine development meeting present needs without compromising the future.Why it mattersThe organising concept of this topic.Easy
• 2Economic growth and economic developmentDistinguish rising output from broader improvement in welfare.Why it mattersA distinction examiners test directly.Easy
• 3The Sustainable Development GoalsIdentify the internationally agreed global development targets.Why it mattersThe framework for measuring global progress.Easy
• 4Environmental sustainabilityDefine maintaining natural capital over time.Why it mattersThe ecological dimension of sustainability.Easy
• 5Economic sustainabilityDefine growth that can be maintained without imbalance.Why it mattersThe economic dimension of sustainability.Easy
• 6Social sustainabilityDefine development that maintains social cohesion.Why it mattersThe social dimension of sustainability.Easy

Medium — Applications

• 7Poverty and environmental degradationExplain how poverty can force unsustainable resource use.Why it mattersExplains deforestation and overfishing in poor regions.Medium
• 8Growth and resource depletionExplain the pressure of expansion on finite resources.Why it mattersThe core tension in sustainable development.Medium
• 9Externalities and sustainabilityExplain how unpriced environmental costs cause overuse.Why it mattersLinks sustainability directly to Unit 2.8.Medium
• 10Intergenerational equityExplain fairness between present and future generations.Why it mattersThe normative basis of the sustainability argument.Medium
• 11Measuring sustainabilityExplain indicators of resource use and emissions.Why it mattersEnables assessment of actual progress made.Medium
• 12Trade-offs between the SDGsExplain tension between growth and environmental goals.Why it mattersPrevents treating the goals as fully compatible.Medium

Hard — Structured IB

• 13Analysing progress towards the SDGsExamine achievement and shortfall using real evidence.Why it mattersA standard data-response task.Hard
• 14Analysing the poverty trap and sustainabilityExamine how low income blocks sustainable investment.Why it mattersConnects poverty directly to environmental outcomes.Hard
• 15Analysing policies for sustainable growthExamine carbon pricing, regulation and green investment.Why it mattersThe applied policy content of this topic.Hard
• 16Analysing international cooperation on sustainabilityExamine agreements and their enforcement difficulties.Why it mattersExplains slow progress on global climate goals.Hard
• 17Analysing the cost of a sustainable transitionExamine the burden falling on developing economies.Why it mattersRaises questions of global fairness.Hard
• 18Analysing green growth strategiesExamine growth compatible with lower emissions.Why it mattersThe contemporary policy alternative.Hard

Very Hard — Integrated SL

• 19Evaluating the compatibility of growth and sustainabilityJudge whether the two objectives can coexist.Why it mattersThe central evaluative question of this topic.Very Hard
• 20Assessing the SDGs as a frameworkWeigh coordination value against measurement problems.Why it mattersTests critical assessment of an institution.Very Hard
• 21Evaluating who should bear the cost of sustainabilityJudge responsibility between developed and developing economies.Why it mattersRaises a contested global equity issue.Very Hard
• 22Judging a country's sustainability performanceEvaluate progress using specific named indicators.Why it mattersRewards applied rather than generic evaluation.Very Hard
• 23Integrating sustainability with development strategyLink environmental limits to growth policy choices.Why it mattersRewards a synoptic link forward into Unit 4.10.Very Hard
• 24Constructing a full sustainability evaluationBuild a structured argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Economic developmentDefine improvement in welfare, choice and living standards.Why it mattersBroader than growth in national output alone.Easy
• 2Single development indicatorsIdentify separate health, education and income measures.Why it mattersThe building blocks of all composite indices.Easy
• 3Health indicatorsIdentify life expectancy and infant mortality rates.Why it mattersDirect measures of welfare outcomes.Easy
• 4Education indicatorsIdentify literacy rates and mean years of schooling.Why it mattersMeasure the stock of human capital.Easy
• 5The Human Development IndexDefine a composite of income, health and education.Why it mattersThe best known composite development measure.Easy
• 6Composite indicatorsDefine measures combining several dimensions into one figure.Why it mattersGive a fuller picture than income alone.Easy

Medium — Applications

• 7Calculating and interpreting HDI valuesExplain what values near zero and near one represent.Why it mattersEnables comparison and ranking of countries.Medium
• 8The Gender Inequality IndexExplain measurement of gender-based disparities.Why it mattersCaptures a dimension income measures entirely miss.Medium
• 9The Multidimensional Poverty IndexExplain measurement of overlapping deprivations.Why it mattersIdentifies intensity as well as extent of poverty.Medium
• 10The Inequality-adjusted HDIExplain discounting achievement for unequal distribution.Why it mattersCorrects a key weakness of the standard index.Medium
• 11Comparing GDP per capita with HDI rankingsExplain why the two measures can differ sharply.Why it mattersShows income alone does not determine development.Medium
• 12Data reliability in developing economiesExplain informal activity and weak statistical capacity.Why it mattersDetermines confidence in reported indicators.Medium

Hard — Structured IB

• 13Analysing the limitations of the HDIExamine omitted dimensions and equal weighting.Why it mattersPrevents uncritical use of the index.Hard
• 14Analysing why income and welfare divergeExamine distribution and public service provision.Why it mattersExplains high welfare at only moderate income.Hard
• 15Analysing composite index constructionExamine weighting and normalisation choices.Why it mattersDetermines whether the rankings are meaningful.Hard
• 16Analysing development indicators from dataInterpret a table comparing several named countries.Why it mattersA standard data-response task in Paper 2.Hard
• 17Analysing gender indicators and developmentExamine the link between equality and economic outcomes.Why it mattersConnects equity to growth performance.Hard
• 18Analysing indicator choice and policy priorityExamine how measurement shapes government focus.Why it mattersExplains why measurement decisions genuinely matter.Hard

Very Hard — Integrated SL

• 19Evaluating the HDI against GDP per capitaJudge breadth against simplicity and comparability.Why it mattersA standard extended-response question.Very Hard
• 20Assessing composite indicators generallyWeigh richer measurement against arbitrary weighting.Why it mattersPrevents uncritical praise of composite measures.Very Hard
• 21Evaluating development performance of a named countryJudge progress using several indicators together.Why it mattersRewards applied data-based evaluation.Very Hard
• 22Judging which indicator best guides policyEvaluate measures against a stated policy objective.Why it mattersRequires prioritisation rather than description.Very Hard
• 23Integrating measurement with development strategyLink indicator weaknesses to the design of policy.Why it mattersRewards a synoptic link forward into Unit 4.10.Very Hard
• 24Constructing a full evaluation of development measurementBuild a data-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Poverty trapsDefine self-reinforcing cycles of low income and low investment.Why it mattersThe central concept of this topic.Easy
• 2The savings gapExplain low income preventing adequate domestic saving.Why it mattersBlocks the finance needed for productive investment.Easy
• 3Low human capitalExplain poor health and education limiting productivity.Why it mattersA direct constraint on output per worker.Easy
• 4Weak infrastructureExplain inadequate transport, power and communications.Why it mattersRaises costs across the whole economy.Easy
• 5Dependence on primary exportsExplain reliance on a narrow commodity export base.Why it mattersCreates income volatility and external vulnerability.Easy
• 6Political instabilityExplain how conflict and uncertainty deter investment.Why it mattersA recognised barrier to sustained development.Easy

Medium — Applications

• 7Weak institutionsExplain poor governance, corruption and unclear property rights.Why it mattersUndermines the incentive to invest and innovate.Medium
• 8Foreign currency gapExplain shortage of currency to fund essential imports.Why it mattersConstrains access to imported capital goods.Medium
• 9IndebtednessExplain the burden of servicing large external debts.Why it mattersDiverts revenue away from development spending.Medium
• 10Capital flightExplain the movement of domestic savings abroad.Why it mattersWorsens the existing domestic savings shortfall.Medium
• 11Rapid population growthExplain pressure on income per head and public services.Why it mattersCan offset gains in total national output.Medium
• 12Geography and landlocked statusExplain higher trade costs and market isolation.Why it mattersA structural constraint on trade-led growth.Medium

Hard — Structured IB

• 13Analysing the poverty trap mechanismExamine the reinforcing links between income and investment.Why it mattersExplains why growth does not begin automatically.Hard
• 14Analysing commodity price volatilityExamine income instability from inelastic demand and supply.Why it mattersRewards a synoptic link back to elasticity.Hard
• 15Analysing the effect of debt on development spendingExamine servicing costs against social investment.Why it mattersExplains international support for debt relief.Hard
• 16Analysing gender inequality as an obstacleExamine lost productive potential and human capital.Why it mattersA recognised constraint on development.Hard
• 17Analysing institutional quality and growthExamine evidence linking governance to economic performance.Why it mattersExplains the focus on institutional reform.Hard
• 18Analysing the interaction of multiple obstaclesExamine how separate barriers reinforce one another.Why it mattersPrevents single-cause explanations of underdevelopment.Hard

Very Hard — Integrated SL

• 19Evaluating the most significant obstacle for a named economyJudge competing barriers using specific evidence.Why it mattersRequires prioritisation rather than listing.Very Hard
• 20Assessing whether aid can break a poverty trapWeigh capital injection against dependency risks.Why it mattersA recurring extended-response debate.Very Hard
• 21Evaluating the role of institutions in developmentJudge governance against resource and geographic factors.Why it mattersTests balanced treatment of competing explanations.Very Hard
• 22Judging the impact of commodity dependenceEvaluate volatility against export earnings gains.Why it mattersRequires genuinely two-sided reasoning.Very Hard
• 23Integrating obstacles with development strategyLink diagnosed barriers to appropriate policy choices.Why it mattersRewards a synoptic link forward into Unit 4.10.Very Hard
• 24Constructing a full evaluation of development obstaclesBuild an evidence-led argument with a supported conclusion.Why it mattersModels the highest-band answer structure.Very Hard

Easy — Foundations

• 1Trade-based growth strategiesDefine development driven by expanding exports.Why it mattersThe market-oriented route to sustained growth.Easy
• 2Import substitutionDefine replacing imported goods with domestic production.Why it mattersAn interventionist industrialisation strategy.Easy
• 3Export promotionDefine orienting production towards world markets.Why it mattersThe strategy behind rapid East Asian growth.Easy
• 4Economic diversificationDefine broadening the range of output and exports.Why it mattersReduces vulnerability to commodity price shocks.Easy
• 5Foreign direct investmentDefine investment by foreign firms in productive assets.Why it mattersA major source of capital and technology.Easy
• 6Foreign aidDefine concessional transfers from donors to recipient countries.Why it mattersA direct response to the domestic savings gap.Easy