Economics is a social science that is concerned with key issues facing us today, including globalisation, pollution and poverty. It is essentially about choice: why different people and groups of people, such as governments, have to make choices; the choices that they make, and the consequences of those choices. Economics teaches students to think logically and to use theories to understand how economies operate. It plays a huge role in our daily lives and you will be taught methods used by economists and how to understand issues such as inflation, unemployment, pollution, demand and supply, exchange rates, interest rates, and the difficult decisions governments face when they attempt to steer the economy in a chosen direction.



  • The individual as a producer, consumer and borrower
  • The private firm as a producer and employer
  • Role of government in the economy
  • Economic indicators
  • Developed and developing economies: trends in production, population and living standards
  • International aspects
  • Basic economic problem
  • The allocation of resources: how the market work; market failure





IGCSE Economics (A*-C)


Paper 1

Paper 2

Theory Multiple Choice


45 Minutes

30% weighting

Structured Questions

90 Marks

2 hours 15 Minutes

70% weighting




  • A knowledge of Economics is an essential when doing IB Economics.
  • At university, Economics can be studies as a BA, BComm, BEcon, BBA, MBA degrees
  • In industry, Economists are hired in all areas of business, for example:
    • Stock Markets
    • International Law
    • Banking and Finance
    • Research and Statistical Analysis
    • Academia (Lecturing and Teaching)
    • International Trade
    • Politics
    • Diplomatic services
    • Government Agencies
Unit / Block of workKey Episodes / QuestionsAdditional DetailTimelineLearner Attribute(s)
1 – The basic economic problem1. What is the economic problem?Understand the economic problemSept – OctReflective
  Finite resources and unlimited wants
  Economic and free goods
 2. Why are the factors of production important in Economics?Define the factors of production
  Reward for the factors of production
  Mobility of factors of production
  Causes of changes in the quantity and quality of FOP
 3. Why is it important for firms to understand Opportunity Cost?Define opportunity costThinker
  Influence of opportunity cost on decision making
 4. How does the Production Possibility Curve show the efficiency of an economy?Define production possibility curve (PPC)
  Draw & Interpret appropriate PPC diagrams
  Significance of the location of production points on PPC curve
  Causes and consequences of shifts and movements of the PPC
2- The allocation of resources5. What is the difference between Microeconomics and Macroeconomics?Distinguish between microeconomics and macroeconomicsPrincipled
  Explain the decision makers involved in microeconomics and macroeconomics
 6. What is the role of markets in allocating resources?Define the market systemOct – Dec
  Resource allocation in a market system
  Price mechanism and allocation of resources
 7. How is demand interpreted and why does it change?Define demandCommunicator
  Draw and interpret demand curves
  Explain movements along a demand curve
  Individual and market demand
  Causes of shifts in a demand curve
 8. How is supply interpreted and why does it change?Define supplyInquirer
  Draw and interpret supply diagrams
  Movements along a supply curve
  Individual and market supply
  Causes of shifts in a supply curve
   Open Minded
 9. How is the price of a good/service determined?Market equilibrium
  Draw & interpret demand and supply curves to establish equilibrium
  Market disequilibrium
  Draw and interpret diagrams to show shortages (excess demand/excess supply)
   Risk Taker
 10. Why do price changes and what is the impact on the economy?Causes of price changes
  consequences of price changes
 11. Why is Price Elasticity of Demand (PED) so significant to economists?Define and calculate PEDCaring
  Draw and interpret demand curve to show different PED
  Determinants of PED
  Relationship between PED and total revenue
  Significance of PED for decision makers
 12. Why is Price Elasticity of Supply (PES) so significant to economists?Define and calculate PESJan – FebReflective
  Draw and interpret supply curve to show different PES
  Determinants of PES
  Significance of PED for decision makers
 13. How can we summarize the concept of Market Economic System?Define market systemKnowledgeable
  Advantages of the market economic system
  Disadvantages of the market economic system
 14. Why does Market Failure occur and what is the impact on the economy?Define concept of market failure
  Causes of market failureThinker
  consequences of market failure
 15. How does the government intervene to solve/prevent market failure?Define mixed economic system
  Maximum and minimum pricesBalanced
  Government intervention to address market failure
3 – Microeconomics16. What is the importance and role of money & banking?Forms, functions and characteristics of moneyFeb – MarPrincipled
  Role and importance of central banks
  Role and importance of commercial banks
 17. How are people influenced when spending and saving their money?Factors that influence household spending, savings and borrowing
 18. Why are there different jobs & salaries in an economy?Wage and non-wage factors affecting choice of occupationApril-MayCommunicator
  Factors that determine wages
  Reasons for differences in earnings
  Advantages and disadvantages of specialization for workers, firms and economy
 19. How do Trade Unions impact on an economy?Define trade unionsOpen Minded
  Role of trade unions in the economy
  Advantages and disadvantages of trade union membership
 20. Why do some business grow and others remain small?Classification of firmsCaring
  advantages and disadvantages of small firms
  Causes of growth of firms
  Advantages and disadvantages of different types of merger
  Economies and diseconomies of scale
 21. How does technology impact on productivity?What determines the demand for factors of productionRisk Taker
  Advantages and disadvantages of labour intensive and capital intensive productionMay-July
  Influences on production and productivity
 22. What are a Firms’ costs, revenue & objectives?Define and calculate costs of productionInquirer
  Draw and interpret diagrams that show how changes in output affect costs of production
  Define revenue
  Total revenue and average revenue calculations
Unit / Block of workKey Episodes / QuestionsAdditional DetailColour CodeTimelineLearner Attribute(s)
3 – Microeconomics continued23. What are the different types of Market Structure?Competitive markets Sept – OctReflective
  monopoly markets 
4 – Government & Macro Economy24. What is the role of government in an economy?Role of government at local, national and international level Knowledgeable
 25. What macroeconomic aims does a government focus on?Macroeconomic aims of government
  Reasons for choice of aims and criteria set for each aim
  Possible conflict between macroeconomic aims
 26. What is the Fiscal policy and how is it implemented?Define budgetThinker
  Reasons for government spending
  Reasons for taxation
  Classification of taxes
  Principle of taxation
  Impact of taxation on various stakeholders
  Fiscal policy
  Fiscal policy measures
  Effect of fiscal policy on macroeconomic aims
 27. What is the Monetary policy and how is it implemented?Define money supplyOct – DecPrincipled
  Define monetary policy
  Monetary policy measures
  Effects of monetary policy on macroeconomic aims
 28. What is the impact Supply-side policy on the economy?Define supply side policyCommunicator
  Various supply side policy measures
  Effects of supply side policy measures on government macroeconomic aims
 29. Why is Economic Growth important for an economy?Define economic growthInquirer
  Measuring economic growth – GDP and GDP per head
  Causes and consequences of recession
  Causes and consequences of economic growth
  Effectiveness of policies to promote economic growth
 30. What is unemployment rate and why will is never be 0% in any economy?Define employment, unemployment and full employmentOpen Minded
  Changing patterns and level of employment
  Measuring unemployment
  Causes and types of unemployment
  Consequences of unemployment
  Policies to reduce unemployment
   Risk Taker
 31. Why is inflation and deflation a reoccurring event in any economy?Inflation and deflationJan – Feb
  Measuring inflation and deflation using CPI
  Causes of inflation and deflation
  Consequences of inflation and deflation
  Policies to control inflation and deflation
5 – Economic Development32. How are Living standards measured any why are they important to economists?Indicators of living standards Caring
  Components of real GDP and the HDI 
  Advantages and disadvantages of real GDP and HDO as measures of living standards
  Comparing living standards and income distribution 
  Reasons for differences in living standards and income distribution within and between countries
 33. Why is there different levels of poverty in different areas of the same country & globally?Absolute and relative poverty 
  Causes of poverty 
  Policies to alleviate poverty and redistribute income 
 34. Why are there different population growth rates in different countries?Factors that affect population growth 
  Reasons for the different rates of population growth in different countries Feb-March
  Effects of changes in the size & structure of population in different countries 
 35. Why are different economies at different levels of economic development?Causes and impacts of differences in economic development between countries 
6 – International Trade & Globalization36. What is meant by International specialization?Specialization at national level Thinker
  Advantages and disadvantages of specialization at a national level 
 37. Why is free trade and economy protection important in global economy?Define globalization Balanced
  Role of MNCs 
  Benefits of free trade for consumers, producers and the economy 
  Methods of protection 
  Reasons for protection 
  Consequences of protection 
 38. Why do Foreign exchange rates exist?Define foreign exchange rates March – AprilPrincipled
  Determination of foreign exchange rates 
  Causes of foreign exchange rate fluctuations 
  Consequences of foreign rate fluctuations 
  Floating and Fixed foreign exchange rate systems 
    Open Minded
 39. What causes imports and exports to fluctuate in an economy?Structure of the current account of the balance of payments 
  Causes of current account deficit and surplus 
  Consequences of current account deficit and surplus 
  Policies to achieve balance of payments stability.