Why Study Economics?

Why are some countries rich and others poor? Why do stock markets go through periods of rapid rise and abrupt falls? Why are highly skilled workers paid more than their unskilled counterparts? Why are some industries more profitable than others? Why can companies with monopoly power earn supernormal profits in the short and the long run? Economics tries to answer these questions and many more. We learn about the reasons behind everyday experiences like unemployment, inflation, economic growth and interest rates. Recent events like Covid-19 have ravaged entire economies, disrupted supply chains and thrown millions of people out of work and into poverty, yet the super-rich got richer during this period, including creating more billionaires than ever before. We can make sense of all these events by looking at them through the lens of economics.    

Students make a wise choice by selecting to study Economics at IB level. It is an academically rigorous subject only offered in its fullest form by the top universities. A major recent survey of UK graduates taken eleven years after graduation (when students were in their early thirties) found economics graduates to be, on average, the highest earners - more than law and more than medicine!

The IB Economics Course

The study of economics is essentially about dealing with scarcity, resource allocation and the methods and processes by which choices are made in the satisfaction of human wants. As a social science, economics uses scientific methodologies that include quantitative and qualitative elements. The IB Diploma Programme Economics course emphasises the economic theories of microeconomics, which deal with economic variables affecting individuals, firms and markets, and the economic theories of macroeconomics, which deal with economic variables affecting countries, governments and societies. These economic theories are not to be studied in a vacuum - rather, they are to be applied to real-world issues. Prominent among these issues are fluctuations in economic activity, international trade, economic development and environmental sustainability.

The ethical dimensions involved in the application of economic theories and policies permeate throughout the economics course as students are required to consider and reflect on human end-goals and values.

Course topics:

• Foundations of economics
• Microeconomics
• Macroeconomics
• The global economy
  

All students study these topics; HL students study extension themes in each topic.  

The economics course encourages students to develop international perspectives, fosters a concern for global issues, and raises students’ awareness of their own responsibilities at local, national and international levels. The course also seeks to develop values and attitudes that will enable students to achieve a degree of personal commitment in trying to resolve these issues, appreciating our shared responsibility as citizens of an increasingly interdependent world.

Standard Level (SL)

Higher Level (HL) 

Entry requirements

Economics is an academically demanding subject. Students who wish to opt for this course should have a minimum of a 5 in GCSE Mathematics and in GCSE English. You should have at least a 6 in Mathematics.

Student Perspectives

“Compared to Business, IB Economics is more analytical and maths heavy and definitely plays to the strengths of those skilled at Maths, but is also not too difficult as to discourage those who aren’t. Personally, what I struggled most with was keeping up with course content as it is never a good idea to leave all your revision to the last minute. One of my favourite things about the course, as opposed to most classes, is that it teaches you how to think rather than what to think; problem solving is a key component and definitely makes the course much more exciting. 

The concepts covered in IB Economics like inflation and behavioural economics help you make sense of the world around you. Being able to identify how global events will either directly or indirectly affect you is an important step in growing up. One of the many things I hear people say in school is “how will knowing this ever help me in life?” and  IB Economics is one of the only classes where I can honestly say I never doubted its usefulness.”

Mahmoud A

“Having grown up surrounded by a lot of economic and political change, I naturally had a lot of questions about the events taking place around me. My choice of Economics at IB has really helped answer a lot of those questions and it enabled me to form my opinions on them. In fact, after a year and a half of taking economics, I had moved to the other side of the political spectrum!

I take Economics as an HL subject which means there are a few topics that are covered in more depth than at SL, it also means that there is an extra paper. Although the Paper 3 can seem daunting because it requires some mathematical application, the mathematical knowledge needed isn’t complex – ultimately, it’s plugging numbers into formulae and calculating areas of shapes on graphs. Most people tend to do better in this paper and it ends up serving as a grade booster. I’d never taken Economics prior to IB but I haven’t felt like I struggled as a result of that at all. Given that you pay attention in class and study efficiently, you’ll be in for a great 2 years.”

Mariam EN

“I have been an IB economics student for almost two years now and can confidently speak about my experience and engagement with the subject. From learning about the individual roles of business proprietors and households in an economy through Microeconomics to looking at an economy through a larger lens in Macroeconomics, the  exposure I received in this course has broadened my general frame of interpretation. Whether it was planning for my TOK essay or writing my Personal Statement, this new framework carried across several of my other IB courses and university applications. 

And while economic theories may sometimes seem mundane, the integration of real examples in the course, such as the OPEC cartel, brings it all to life. I found myself referring to news outlets on a weekly basis to look for new IA articles or examples to use in exams. I truly believe that IB Economics afforded me the opportunity to become more aware of contemporary global issues, which also helped me to incorporate them in my university application process.”

Adam E

“With an in-depth understanding of this course, you will acquire many skills such as communication, time management, problem solving and enhancing your cognitive thinking. If I could go back in time, if I had someone telling me more about this subject and if I had known what to expect out of this course, at your age, I would’ve definitely taken the opportunity.”

Danya A