50+ IB Economics 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

2.1) 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.

2.2) Reference Link:

https://www.devdiscourse.com/article/headlines/2286336-czech-government-approves-energy-price-cap-for-large-firms

Introduction:

Define key terms like Merit Goods. 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:

Consequences of maximum price would be shortages, welfare impacts (consumer surplus increases), underground markets, inefficient resource allocation and non-price rationing mechanisms. Assess the effectiveness of the Price Ceiling using CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders (Consumer – Low price, Producer – Revenue decreases) Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, the solution would be to increase government spending through subsidies or direct provision. 

3.) Negative externalities (Market failure)

Reference Link:

https://www.nytimes.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: