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IB Macroeconomics IA Ideas

1.) Indirect tax on demerit goods

Reference Link:

https://www.financialexpress.com/economy/demerit-goods-higher-rates-likely-on-pan-masala-and-gutkha-to-curb-tax-evasion/2259657/

Introduction:

Define key terms. In this article, you would have to define indirect tax and demerit goods, with relevance to the context.

Diagram:

Impact of indirect tax on demerit goods using an inelastic demand curve.

Evaluation:

Assess the effectiveness of the indirect tax using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, an alternative could be a complete ban on demerit goods

2.) Price ceiling.

Reference Link:

https://www.thenewsminute.com/article/opinion-kerala-has-fixed-price-ceilings-covid-19-goods-it-prudent-149188

Introduction: 

Define key terms. In this article, you would have to define the price ceiling, with relevance to the context.

Diagram: 

Impact of price ceiling on the equilibrium level of output/disequilibrium and price using demand and supply.

Evaluation: 

Assess the effectiveness of the Price ceiling using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, an alternative could be a subsidy.

3.) Negative externalities (market failure).

Reference Link:

https://www.nytim

es.com/2020/10/08/business/colleges-pandemic-market-failure.html

Introduction:

Define key terms. In this article, you would have to define negative externalities and market failure, with relevance to the context.

Diagram:

Impact of negative externality on MSB and MSC

Evaluation:

Assess the negative externality using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to curb market failure.

4.) Subsidies.

Reference Link:

https://economictimes.indiatimes.com/news/economy/agriculture/govt-approves-rs-60939-crore-subsidy-for-pk-fertilisers-for-april-september/articleshow/91127459.cms

Introduction:

Define key terms. In this article, you would have to define subsidy, with relevance to the context.

Diagram:

Impact of subsidy on the equilibrium level of output and price using demand and supply.

Evaluation:

Assess the effectiveness of the subsidy using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, an alternative could be a price ceiling.

5.) Monopoly power.

Reference Link:

https://www.bbc.com/news/business-54443188

Introduction:

Define key terms. In this article, you would have to define monopoly and monopoly power along with its features, with relevance to the context.

Diagram:

Impact of monopoly on the equilibrium level of output and price using AC, MC, D and MR.

Evaluation:

Assess Monopoly power using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest how the government can regulate monopolies to stop them from abusing their market power.

6.) Inflation Targeting.

Reference Link:

Why RBI isn’t able to meet its target? (finshots.in)

Introduction:

Define and understand the concept of inflation targeting.

Diagram:

The diagram for the money market which illustrates how the central bank can change the interest rate by changing money supply. (HL ONLY)

Evaluation:

Assess the effectiveness of this policy by looking at the pros and cons of it.

7.) Business cycle contraction.

Reference Link:

The Fault in our GDP (finshots.in)

Introduction: 

Define and understand the concept of contraction in the business cycle.

Diagram: 

Locate contraction in the diagram for the business cycle.

Evaluation: 

Assess contraction in business cycle using the clasp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons)

8.) Privatization:

Reference Link:

The debate on bank privatization (finshots.in)

Introduction:

 Define and understand the concept of privatization.

Diagram:

No diagram

Evaluation:

Assess privatization using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons)

9.) Government Debt/ national debt: (hl)

Reference Link:

India’s debt burden explained in charts – Times of India (indiatimes.com)

Introduction:

Define and understand the concept of national debt or government debt.

Diagram:

No diagrams

Evaluation:

Assess government debt using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons)

10.) Economic growth:

Reference Link:

India news: How long before India becomes a developed country? – The Economic Times (indiatimes.com)

Introduction:

Understanding the concept of long-term economic growth and supply side policies.

Diagram:

Rightward shift of the long-term supply curve and rightward or upward shift of the production possibilities curve.(PPC)

Evaluation:

Assess long term growth using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons)

11.) Structural Unemployment:

Reference Link:

Can the impact of automation on labour be absorbed by a robot tax? – Frontline (thehindu.com)India news: How long before India becomes a developed country? – The Economic Times (indiatimes.com)

Introduction:

Understanding the concept of structural unemployment

Diagram:

Using the AS /Ad model to locate structural unemployment

Evaluation:

Assess structural unemployment using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons)

12.) Minimum wages:

Reference Link:

Indian Railways minimum wages: What CAG found after reviewing 463 contracts | Zee Business (zeebiz.com)

Introduction: 

Understanding the concept of minimum wages

Diagram: 

The demand and supply of labour in the labour market to illustrate the effect of minimum wages

Evaluation: 

Assess minimum wage legislation using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons)

13.) Poverty line

Reference Link:

Data | 1994 vs 2012: Bihar, M.P. and Odisha had the highest share below poverty line in both years – The Hindu

Introduction:

Understanding the concept of poverty , its measurements and the poverty line.

Diagram:

The poverty trap.

Evaluation:

Assess poverty and various measures of measuring poverty using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons).

14.) Government Debt/ national debt: (hl)

Reference Link:

Multiplier effects of our oil palm production partnership – Okowa – The NEWS (thenewsnigeria.com.ng)

Introduction:

Understanding the concept of the Keynesian multiplier and the multiplier mechanism.

Diagram:

Illustrate the multiplier effect using the aggregate demand curve.

Evaluation:

Assess Keynesian multiplier using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons).

15.) Economic growth:

Reference Link:

Why India’s 75-Day Free Booster Drive is a Smart Move and How Can it be Made Smarter (msn.com)

Introduction:

Understanding the concept of positive externalities using relevant examples.

Diagram:

Illustrate positive consumption externality using the marginal social benefit (MSB), Marginal private benefit (MPB) and Marginal Social and private cost curves (MSC and MPC)

Evaluation:

Assess the concept of positive externalities using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons).

16.) Structural Unemployment:

Reference Link:

Apple may face antitrust suit for AirTags (msn.com)

Introduction:

Understand anti trust laws, their relevance and what are the possible consequences of not having anti-trust laws .

Diagram:

Profit maximization using Marginal revenue (MR), Marginal Cost (MC), Average revenue (AR) and Average Cost (AC) curves to illustrate loss of surplus because price > MC.

Evaluation:

Assess Anti- trust laws using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons).

IB Microeconomics IA Ideas

1.) Contractionary monetary policy.

Reference Link:

https://indianexpress.com/article/business/banking-and-finance/rbi-hikes-repo-rate-monetary-policy-committee-meeting-highlights-7901085/

Introduction:

Define key terms. In this article, you would have to define monetary policy and contractionary monetary policy, with relevance to the context.

Diagram:

Impact of monetary policy on the equilibrium level of output and price level using Aggregate demand and supply.

Evaluation:

Assess the effectiveness of the contractionary monetary policy using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, an alternative could be a contractionary fiscal policy.

2.)Expansionary fiscal policy.

Reference Link:

https://carnegieindia.org/2022/02/17/india-s-new-budget-reveals-shift-in-fiscal-strategy-pub-86453

Introduction:

Define key terms. In this article, you would have to define fiscal policy and expansionary fiscal policy, with relevance to the context.

Diagram:

Impact of fiscal policy on the equilibrium level of output and price level using Aggregate demand and supply.

Evaluation:

Assess the effectiveness of the expansionary fiscal policy using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, an alternative could be an expansionary monetary policy.

3.) Stagflation.

Reference Link:

https://www.indiatoday.in/business/story/unemployment-inflation-rise-indian-economy-brace-itself-coming-days-1926257-2022-03-17

Introduction:

Define key terms. In this article, you would have to define unemployment, inflation and stagflation, with relevance to the context. 

Diagram:

Phillips curve showing the trade-off between unemployment and inflation rate.

Evaluation:

Assess stagflation with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to tackle stagflation, such as by using a monetary policy.

4.) Unemployment.

Reference Link:

https://www.dw.com/en/covid-indias-economy-battles-widespread-unemployment-inflation/a-60612013

Introduction:

Define key terms. In this article, you would have to define unemployment with relevance to the context.

Diagram:

Diagram is not applicable to the scenario. However, a relevant diagram would be a Phillips curve showing the trade-off between unemployment and the inflation rate.

Evaluation:

Assess unemployment with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to tackle unemployment, such as by using a monetary/fiscal policy.

5.) Reduction in GDP.

Reference Link:

https://timesofindia.indiatimes.com/business/india-business/indias-gdp-set-to-drop-7-7-biggest-contraction-since-1952/articleshow/80155191.cms

Introduction:

Define key terms. In this article, you would have to define GDP with relevance to the context.

Diagram:

Business cycle

Evaluation:

Assess reduction in GDP with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest ways to increase GDP, such as by using an expansionary monetary/fiscal policy.

6.) Free good and economic good :

Reference Link:

How Much Does Oxygen Cost? | HowMuchIsIt.org

Introduction:

Understanding the reasoning behind calling oxygen “free”. When and why does it become an economic good .

Diagram:

Using demand and supply analysis to explain the difference between free goods and economic goods.

Evaluation:

Assess free and economic good using the clasp approacr (Conclusions,Limitations,Assumptions,Stakeholdera,priorotes ,pros and cons)

7.) OLIGOPOLY: (hl only)

Reference Link:

Forty US states filed a lawsuit against pharmaceutical firms colluding oligopoly — MercoPress

Introduction:

Define oligopoly and collusive oligopoly . Understand the degree of market power an oligopolies has.

Diagram:

Profit maximization of a price fixing cartel using Marginal revenue (MR), Marginal Cost (MC), Average revenue (AR) and Average Cost (AC) curves.

Evaluation:

Assess an oligopoly using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons).

IB International Economics IA Ideas

1.) Tariffs.

Reference Link:

https://www.commerce.gov/news/press-releases/2022/05/raimondo-announces-temporary-suspension-232-tariffs-ukraine-steel

Introduction:

Define key terms. In this article, you would have to define tariffs with relevance to the context.

Diagram:

Impact of tariff on exchange rate using domestic demand, domestic supply and world supply curves.

Evaluation:

Assess the impact of tariffs on the economy with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternative solutions if any, such as a quota or an embargo.

2.) Exports.

Reference Link:

https://www.hindustantimes.com/india-news/cloud-over-wheat-exports-as-output-dips-prices-touch-10-year-high-101652196628452.html

Introduction: 

Define key terms. In this article, you would have to define exports and balance of trade with relevance to the context.

Diagram: 

Impact of changes in exports using demand and supply diagram to show reflected changes in the exchange rate.

Evaluation: 

Assess the balance of trade scenario with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to recover from a balance of trade deficit/surplus using trade protection or other means.

3.) Currency depreciation.

Reference Link:

https://economictimes.indiatimes.com/markets/forex/rupee-to-depreciate-to-77-5-vs-us-dollar-by-march-2023-on-widening-cad-us-fed-rate-hikes-report/articleshow/90292545.cms?from=mdr

Introduction:

Define key terms. In this article, you would have to define currency, depreciation and exchange rate with relevance to the context.

Diagram:

Using a demand and supply curve, you can show the impact of currency depreciation on the exchange rate.

Evaluation:

Assess the currency depreciation scenario with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to appreciate currency such as by raising interest rates or increasing government spending.

4.) Globalization (FDI).

Reference Link:

https://economictimes.indiatimes.com/news/economy/finance/outward-fdi-nearly-halves-to-usd-3-39-bn-in-april/articleshow/91472108.cms

Introduction:

Define key terms. In this article, you would have to define globalization with relevance to the context.

Diagram:

Show how an FDI impacts the economy in terms of appreciation or depreciation of the exchange rate using demand and supply.

Evaluation:

evaluate globalization with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternative ways to encourage and improve globalisation such as FIIs, etc.

5.) Exchange rate.

Reference Link:

https://www.business-standard.com/article/international/china-s-currency-hits-18-month-low-against-dollar-falls-to-6-7134-122051001491_1.html

Introduction:

Define key terms. In this article, you would have to define the exchange rate with relevance to the context.

Diagram:

Show how the demand and supply meet to form the exchange rate of an economy and how it fluctuates

Evaluation:

Evaluate the changes in exchange rate with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to increase/decrease the exchange rate in the economy.

6.) Import and exports:

Reference Link:

Pakistan may import tomato and onion from India amid huge surge in vegetable prices due to floods – The Economic Times (indiatimes.com)

Introduction:

Use this article to understand the impact of a disaster on an economies GDP, understand the impact of rise in imports on the importing country and the exporting country.

Diagram:

Circular flow of income model

Evaluation:

Assess import and export using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders ,priorities ,pros and cons)

7.) Free Trade: Absolute and Comparative advantage (hl).

Reference Link:

https://www.hindustantimes.com/india-news/cloud-over-wheat-exports-as-output-dips-prices-touch-10-year-high-101652196628452.html

Introduction: 

Identify the role free trade has played in India’s economic growth and development post 1991.

Diagram: 

Show absolute and comparative advantage using the production possibilities curves. (ppc)

Evaluation: 

Assess absolute and comparative advantage using the claspp approach (Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons).

8.) The j curve effect (HL only).

Reference Link:

USD vs INR | India’s macroeconomic fundamentals are strong (moneycontrol.com)

Introduction:

Understand the concept of the J -Curve effect.

Diagram:

J CURVE

Evaluation:

Assess the J CURVE Effect using the claspp approach
(Conclusions, Limitations, Assumptions, Stakeholders, priorities, pros and cons).

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