IB Economics. ... After economics class one day, your friend suggests that taxing food would be a good way to raise revenue because the demand for food is quite inelastic. 1.3 syllabus. The world's best IB Economics teaching and learning resource has a wide variety of teaching and learning resources which include: classroom games, topic tests and mock exams, video tutorials, PowerPoint notes, flashcard presentations, interactive quizzes and activities and exam practice questions with answers for ALL IB Economics topics embedded in ALL study areas. The intuitive way to think of tax incidence: PED is probably lower than PES for cigarettes – addicted people might be charged almost anything and the quantity would fall very little. Government Intervention - notes Syllabus: Explain why governments impose indirect (excise) taxes. Price controls in Venezuela. The market equilibrium is at quantity Q2 and price P1 where demand D intersects supply S. Once an indirect tax of size P2-P3 (also represented by the orange line) is introduced the supply curve shifts from S to S+tax. they do not … Class Resources HL content. Good examples of markets where maximum prices could be imposed are food and housing. You can only talk about the RELATIVE PED and PES. Economics is a required course for any Business, Math, or Public administration degree. The syllabus is divided as per the latest IB Economics specifications. Government buys and stores the excess supply; Government sells the good internationally, but would need to subsidise it in order for it to be able to compete on internal markets; Government buys the good and gives it away as foreign aid. Market Failure. It is a government policy to influence demand indirectly. IB Economics SL and HL Core. Hey! However, you could argue that once food became more attainable society is better off (e.g. I wanted to share some additional resources that might be useful to your readers. Government Intervention. Relevant Exam Boards: A-Level (Edexcel, OCR, AQA, Eduqas, WJEC), IB, IAL, CIE Edexcel Economics Notes Directory | AQA Economics Notes Directory | IB Economics Notes Directory. Government can burn the excess supply. If it is set above or at the equilibrium price – there are no changes. The IB Diploma Programme Economics course forms part of group 3 - individuals and societies. If you need some help in your IB Economics SL/HL class, this study guide is for you. You can only talk about the RELATIVE PED and PES, Guide to sketching the perfect Economics Diagram, Diagrams for IB Economics Internal Assessment, Guide to finding an article for Economics IA. in 1.1 Competitive Markets: Demand & Supply, 1.2 Elasticity, 1.3 Government Intervention, 1.4 Market Failure, 1.5 Theory of the Firm, IB Economics SL/HL Leave a comment Economics Y1 Notes 1 Demand & Supply. It basically allows IB graduates to upload their IB stuff (notes/IAs/EEs etc) and then earn whenever others view them. It contains a curated collection of the best IB Economics Study Guides and Notes. TabletClass Math Recommended for you This is what we look at in this section of the course. RECENT POSTS. If PED < PES (in absolute terms): vice versa – the consumer will pay most of the tax. Introduction to Economics. Unit 1: Microeconomics. This might result in government losing tax revenue as well as other problems associated with shadow economy. This section of the IB Economics course examines the three main types of government intervention in the market: indirect taxes, subsidies and price controls. The Government would rather place indirect taxes on commodities where demand is inelastic because the tax causes only a small fall in the quantity consumed and as a result the total revenue from taxes will be greater.An example of this is the high level of duty on cigarettes and petrol. Having said that, workers could become more productive and other benefits associated with better nutrition arise. Elasticities. e.g. Governments will usually impose price ceilings when they believe that the equilibrium price in the market is too high and undesirable (e.g. $5 tax placed on every packet of cigarettes in an attempt to decrease consumption. Both are organized into four main units, each with multiple subtopics. Within microeconomics, you will study the concepts of demand and supply, elasticities, government intervention and market failure. If PED > PES (in absolute terms, because normally, PED is always < 0 and PES is always > 0): You can see right away that the largest chunk of the tax falls on to the producer, while the consumer pays very little. 1.3 Government Intervention – Indirect Taxes. Decrease supply Economics in the news. Useful Videos. This IB Economics study guide is organized according to the IB Economics Syllabus. Managed exchange rate: the government usually sets a range between which the exchange rate should remain, the central bank then periodically intervenes if the exchange rate moves below or above this desirable range. IB Economics notes on 1.3 Supply. Introduction to Economics. Therefore the government may feel there is a case to intervene and stabilise prices. This is a different kind of government intervention. There are two types of indirect taxes you need to know for your IB Economics course: It is important to note that on a diagram both of these taxes will affect the supply curve differently. IB Economics. Government: they do not gain any of the lost welfare. Introduction to Economics. Government intervention What is laissez faire economics? If you need help with your IB Economics SL/HL class, this site is for you. Supply: is the total amount of goods and services that producers are willing and able to purchase at a given price in a given time period.. ... with no government intervention; This is a collection of IB Economics (HL) notes. Hey, IB Economics Students and Teachers - FINALLY IT’S ALL IN ONE PLACE! Assume the market for rice stars in equilibrium where supply is equal demand (S = D) at price P1 and Q2. Price Controls Examples & Explanation: weak consumers cannot afford a necessity, etc.). This is quite unethical. IB Economics notes on 3.2 Subsidies. The aims of the economics course at higher level and standard level are to: IB Economics HL Notes Premium notes for IB students who have opted for Economics HL. Hence, governments could impose price ceilings on certain foods. Shall be updated regularly as the topics are covered. A specific tax will shift the supply curve vertically up by the size of the tax. Since there is shortage, people could start buying and selling the good illegally for higher prices than the set maximum price. nutrition-wise). I have already emailed you using the contact form. Subsidies Impact on markets. An ad valorem tax will make the new supply curve diverge from the original (the vertical gap between the two supply curves will increase when moving along the X axis – click here for examples). Revision Notes; Interactive Quizzes; IB Economics. IB Economics. Below is the IB Economics syllabus for SL and HL. Specific tax – a fixed monetary value added on every unit of produce. There are times however, when it fails. Can be of two kinds: Intervention: Intervention in economics usually refers to government involvement in the workings of markets. In addition to this, HL students study theory of the firm. I prepared these IB study notes for use during volunteer review sessions I’ve held at the local IB international high school in my town. 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