Overview
Like the SL course, Economics HL provides students with a core knowledge of economics and also incorporates elements of history, geography, psychology, sociology, political studies and other related fields of study.

Economics is a dynamic social science, forming part of the study of individuals and societies. The study of economics has many facets, and this is reflected in the broad scope of the course. At its core, economics is concerned with the concept of scarcity and problems of resource allocation. Students will study how markets function. They will look at the ways in which government policies influence unemployment, inflation and economic growth. They will also consider how economic theory can be applied in an international context.

The scientific approach characterises the standard methodology of economics. This methodology can be summarised as a progression from problem identification, through hypothesis formulation and testing, arriving finally at a conclusion. Alongside the empirical observations of positive economics, students will be asked to formulate normative questions. Encouraging students to explore such questions is an important focus of the course.

Students taking Economics HL online live and study in different economic environments, bringing their unique perspectives to online discussions and using “voice threads” to conduct lively debates. Blogs allow students to share and express their opinions on current news articles addressing issues of economic policy. Various Web 2.0 tools are used for collaborative projects and presentations in the course, and students will find themselves working closely with classmates from around the world. While learning about the world of economics, students will be developing online skills which will benefit them in their future educational and career endeavours.

Aims of the Economics course at both Standard and Higher Levels

• provide students with a core knowledge of economics
• encourage students to think critically about economics
• promote an awareness and understanding of internationalism in economics
• encourage students' development as independent learners
• enable students to distinguish between positive and normative economics
• enable students to recognise their own tendencies for bias.

Differences Between HL and SL Economics Courses
The Higher Level course in economics differs from the Standard Level course in terms of the

• hours devoted to teaching (240 hours for HL compared to 150 hours for SL)
• extra depth and breadth required for HL through the inclusion of “extension topics”
• number of external assessment components (3 examination papers for HL, 2 examination papers for SL) and weighting of the examination questions (see Assessment Outline below)

Syllabus Outline: IB Economics
There are five sections. Details in parentheses are indicative of the range of topics covered.

• Introduction to Economics
• Microeconomics (the study of markets)
• Macroeconomics (issues related to countries’ economic growth, economic development, unemployment, inflation and income distribution)
• International Economics (why countries trade, exchange rates)
• Development Economics (problems facing developing countries, distinction between economic growth and economic development)

Economics HL Assessment Outline
In My 2012, students will sit three written exams:

• Examination 1 consists of four extended-response questions based on all five sections of the syllabus. Candidates must attempt one question. The exam lasts 1 hour and is worth 20% of the total mark.
• Examination 2 consists of six short-answer questions based on all five sections of the syllabus. Candidates must attempt three questions. The exam lasts 1 hour and is worth 20% of the total mark.
• Examination 3 consists of structured data-response questions on all five sections of the syllabus. Candidates must attempt three questions. The exam lasts 2 hours and is worth 40% of the total mark.

The Internal Assessment requires students to produce a portfolio of four commentaries, based on news media extracts and linking economic theory to a real-world situation. Each commentary is to be 650-750 words long and the total portfolio accounts for 20% of the total mark.

Prior Learning for Economics HL

Students do not need a background in economics for this course, although familiarity with basic economic concepts would be an advantage.

Adapted from the IB Economics Subject Guide © International Baccalaureate Organisation.