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IB Microeconomics IA Ideas
1.) Indirect tax on demerit goods
Reference Link:
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:
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:
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:
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
4.1) Reference Link:
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.
4.2) Reference Link:
Introduction:
Define key terms. In this article, you 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 (Consumer – price of the product decreases, Producer – revenue increases, Government – expenditure increases), Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, a price ceiling could be an alternative.
5.) Monopoly Power
5.1) 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.
5.2) Reference Link:
Introduction:
Define key terms in context to the article such as monopoly, efficiency. Write a thesis statement on what the article is talking about.
Diagram:
Monopoly diagram of healthcare market after merging of companies and effect of the positive externalities of health care
Evaluation:
Assess the effect of merger using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Discuss disadvantages of merger as it will lead to less competition and therefore less allocative efficiency in the market, resulting in high price and less choices for consumers.
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.) 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).
9.) Negative Consumption Externality (Market Failure)
9.1) Reference Link:
Introduction:
Define key terms. As per this article, you would have to define negative consumption externality and demerit goods (vap), 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). Effects in the long term and short term. Market based policies (Taxation and Tradable permits), Government regulations (Banning) and Publicity Campaign (Fund negative advertising on demerit goods or provide education on demerit goods) are the solutions to curb market failure.
9.2) Reference Link:
Introduction:
Define key terms. As per this article, you would have to define negative consumption externality and demerit goods (cigarettes), 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). Effects in the long term and short term of banning cigarettes.
9.3) Reference Link:
http://www.cpr.org/news/story/ledstreetlightsbringcostsavingsandheadachestocoloradocities
Introduction:
Define key terms. As per this article, you would have to define negative consumption externality and public goods (LED Streetlights), with relevance to the context.
Diagram:
Negative Consumption Externality of LED streetlights
Evaluation:
Analysis should show that installation of LEDs in some streetlights will save costs while minimizing negative externalities. Assess the negative externality using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Effects in the long term and short term.
9.4) Reference Link:
Introduction:
This article discusses Scotland’s implementation of a price floor. Define key terms. As per this article, you would have to define negative consumption externality and demerit goods (alcohol), with relevance to the context.
Diagram:
Negative externalities associated with alcohol consumption and Impact of minimum price
Evaluation:
Implementation of minimum price can be useful to curb quantity demanded which reduce alcohol related deaths. Also, implementation of the price floor can be considered positive. Assess the negative externality using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons).
10.) Price Floor
10.1) Reference Link:
https://www.brecorder.com/news/40213855/north-sea-producers-seek-price-floor-to-limit-windfall-tax
Introduction:
Define key terms. As per this article, you would have to define the price floor with relevance to the context.
Diagram:
Impact of price floor on the equilibrium level of output/disequilibrium and price using demand and supply.
Evaluation:
Consequences of minimum price would be surpluses, disposal of the surplus by the government, welfare impact (producer surplus increases, consumer surplus decreases), and inefficient resource allocation. Assess the effectiveness of the Price Floors using CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders (Consumer – Higher prices, Producer – Higher selling price), Priorities, Pros and Cons). Suggest alternatives if necessary. In this case, the solution would be to increase government spending the consequences; store, destroy or sell the surplus overseas, or increase demand by advertising or restricting supplies of imports through protectionist policies (thus increasing demand for domestic products).
10.2) Reference Link:
Introduction:
Define key terms like Merit Goods. In this article, you would have to define the price flooring, with relevance to the context.
Diagram:
Impact of price flooring on the equilibrium level of output/disequilibrium and price using demand and supply.
Evaluation:
Assess the effectiveness of the Price Flooring using CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest alternatives if necessary. Discuss the implications on domestic and export markets.
11.) Demand
Reference Link:
Introduction:
Define key terms supply and demand in context of the article.
Diagram:
Leftward shift in demand
Evaluation:
Assess the effect of demand using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Competitors benefit from this situation because they will sell more products after an increase in their demand. On the other hand, consumers will stop purchasing from that company and switch to an alternative.
IB Macroeconomics IA Ideas
1.) Contractionary monetary policy
Reference Link:
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
2.1) 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.
2.2) Reference Link:
https://www.ft.com/content/3f9bf892-aa64-11e8-94bd-cba20d67390c
Introduction:
Define key terms like expansionary fiscal policy. This article outlines the South Korean government’s plan to increase spending as expansionary fiscal policy, which is government change to taxation or spending aimed at increasing the aggregate demand of the economy.
Diagram:
Level of demand deficient unemployment in the economy
Evaluation:
Assess the expansionary fiscal policy using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). It could be opportune for them to spend in the circumstances if the government is exacting greater tax revenues. The spending could ultimately accrue merits above employment creation, spending on education and healthcare may benefit welfare in the long run.
3.) Stagflation
Reference Link:
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:
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
6.1) 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)
6.2) Reference Link:
Introduction:
Define key terms like inflation. The government is trying to stop deflation because of the adverse effect of the negative growth rate of real GDP.
Diagram:
Aggregate Supply and Demand – Effect of decreased consumer spending and investment on price levels and GDP of Japan
Evaluation:
Assess the inflation using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). In addition to the government making policy choices, firms are choosing whether or not to invest, and households have difficult choices to make about consumption and wages.
7.) 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)
8.) Government Debt/ National Debt (HL Only)
8.1) 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)
8.2) 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).
9.) Economic Growth
9.1) 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)
9.2) 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).
10.) Structural Unemployment
10.1) Reference Link:
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)
10.2) 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).
11.) Minimum Wages
Reference Link:
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)
12.) Poverty Line
Reference Link:
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).
13.) Fiscal Policy
Reference Link:
Introduction:
Define key terms in terms of the context. Discuss what the article is talking about and how expansionary fiscal policy increases government spending and decreases tax.
Diagram:
Shift in Aggregate Demand by expansionary fiscal policy and shift in LRAS from fiscal policies
Evaluation:
Assess the impact of expansionary fiscal policy using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Effects in the long term and short term.
14.) Unemployment Rate
Reference Link:
https://www.nytimes.com/2017/04/13/business/britain-labor-market-brexit.html
Introduction:
This article discusses the unemployment rate being at its lowest level. Define the term unemployment and its types. How the unemployment rate drastically decreases as there are new job opportunities introduced in the market.
Diagram:
Labour Market (Demand for Workers)
Evaluation:
Assess the impact of unemployment rate using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Producers are required to spend more money on labour wages. Government has to pay less unemployment benefits. Lastly, workers will be employed because of increase in job opportunities.
15.) Income Distribution
Reference Link:
https://www1.folha.uol.com.br/internacional/en/business/2023/02/middle-class-leads-loss-of-income-in-the-pandemic-and-drives-inequality-in-brazil.shtml
Introduction:
Define key terms. Write a thesis statement of the article. In this article, you would have to illustrate the problems associated with income inequality and inequity.
Diagram:
Lorenz Curve representing the Gini coefficient
Evaluation:
Evaluate the implications of the Gini coefficient and how does progressive tax influences the income distribution. Argue effectively that without additional policies to go alongside progressive taxation, any distribution policy is likely to be ineffective.
IB Global Economy IA Ideas
1.) Tariffs
1.1) Reference Link:
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.
1.2) Reference Link:
Introduction:
Define key terms. Thesis statement of the article. 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 embargo.
2.) Exports
2.1) Reference Link:
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.
2.2) Reference Link:
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 or surplus using trade protection or other means.
3.) Currency Depreciation
Reference Link:
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:
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
5.1) Reference Link:
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.
5.2) Reference Link:
https://tribune.com.pk/story/1619928/2-rupee-weakened-major-currencies/
Introduction:
The article discusses how the decisions and currencies of other countries have led to the Pakistani rupee’s depreciation.
Diagram:
Effect of change in Pounds on Rupees
Evaluation:
The depreciating rupee inflicts many changes on the economy and on producers and consumers. The outcome can be considered positive if Pakistan is experiencing a recession, but harmful otherwise. Assess the effect of exchange rate using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons).
6.) Import and Exports
Reference Link:
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 Only)
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).
9.) Foreign Direct Investment (FDI)
Reference Link:
Introduction:
Define key terms. Explain what the article is talking about. With reference to this article, you would have to define globalization and foreign direct investment 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 globalization such as Foreign Institutional Investor (FII). FDI in India (Current FDI scenario, Role of MNCs in economic growth)
10.) Exchange Rate Fluctuations
Reference Link:
Introduction:
Define key terms. In this article, you would have to define freely floating exchange rate and appreciation or depreciation exchange rate changes with relevance to the context.
Diagram:
Exchange rate changes in a freely floating exchange rate system
Evaluation:
Impact on import and export. Investment performance. Effects on rate of inflation. Balance of payments. Evaluate the causes (investment from abroad, changes in income, interest rate changes, speculation) and effects (foreign debt, economic growth, employment, current account balance, demand-pull or cost-push inflation) of changes in exchange rate using CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons).
11.) Balance of Payments
Reference Link:
Introduction:
Define key terms. Write a thesis statement on what the article is about. In this article, you would have to define balance of payments and trade deficit with relevance to the context.
Diagram:
Using a PPC to illustrate a trade deficit or a trade surplus
Evaluation:
Assess the trade deficit scenario with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to recover from the balance of trade deficit using trade protections.
12.) Trade
Reference Link:
https://www.nytimes.com/2017/12/08/business/economy/eu-japan-trade.html
Introduction:
Define key terms like trade and interdependence. Free trade between the European Union and Japan. Advantages and disadvantages of free trade.
Diagram:
Japan’s tariffs on European imports and Japan’s PPF for the production of agricultural and manufactured goods
Evaluation:
The phenomenon of trade diversion shows how all economies in the world are interdependent. Assess the impact of tariffs on the economy with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons).
13.) Interest Rate
Reference Link:
https://www.ft.com/content/58221aa8-8a23-11e6-8cb7-e7ada1d123b1
Introduction:
The article considers the concept of opportunity cost and the decision by the Indian government to reduce the central bank interest rate, which is the cost of two substitute services – borrowing and saving.
Diagram:
Aggregate Demand
Evaluation:
India’s central bank reduced the interest rate to increase growth and bring inflation under control. Make judgments based on economic concepts and theories such as cost push inflation. The work should be supported with economic theory, not merely your own opinions. Evaluate the reduction in interest rate with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons).
14.) Tariff and Quota
Reference Link:
https://www.bbc.com/news/business-36617656
Introduction:
Talk about the article. Define key terms such as trade barriers, tariffs. Possible effects on the economy in terms of trade. Imposition of trade barriers between the countries.
Diagram:
Effect of trade diversion and Quota
Evaluation:
The response should apply the concept of quota, tariff barriers and customs union. It should be balanced providing an advantage and disadvantage of the UK’s decision of trade diversion and trade creation. Assess the impact of tariffs on the economy with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons).
15.) Current Account Deficit
Reference Link:
https://www.msn.com/en-in/money/topstories/current-account-deficit-for-first-half-of-2022-23-at-33-pc-of-gdp-rbi-governor/ar-AA17eZ6U
Introduction:
Define key terms. Write a thesis statement on what the article is about. In this article, you would have to define the current account deficit with relevance to the context.
Diagram:
Effect of current account deficit
Evaluation:
Assess the current account deficit scenario with relevance to context using the CLASPP approach (Conclusion, Limitations, Assumptions, Stakeholders, Priorities, Pros and Cons). Suggest solutions to recover from the trade deficit using trade protections.
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