IB Economics: Curriculum Modules & Topics Comparison
UNIT 1: Introduction to Economics
Module 1.1: What is Economics?
| Traditional Topics | Potential Inclusions and Modifications |
|---|---|
| • The problem of scarcity • Choice and opportunity cost • Economic systems • Production possibilities curve (PPC) • Resource allocation | "Societies can respond to scarcity through cooperation (markets, trade, institutions) or conflict (competition, violence). Economics studies the cooperative responses - the systems that enable societies to prosper peacefully." |
| Additions | Guns vs Butter PPC example. Sue to start thinking about economics and security. |
Module 1.2: How Do Economists Approach the World?
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Positive vs. normative economics
• Ceteris paribus
• Economic models
• Scientific methodology | None |
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UNIT 2: Microeconomics
Modules 2.1-2.7 (Demand, Supply, Elasticity, Government Intervention)
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| Traditional Topics | Potential Inclusions and Modifications |
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| All standard microeconomics content:
• Demand and supply
• Market equilibrium
• Price elasticity
• Income elasticity
• Cross-price elasticity
• Government intervention (price controls, taxation, subsidies) | None. |
| | |
| | Note: These build foundations for Positive Peace Pillars 2 and 3 (Sound Business Environment, Equitable Distribution) |
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Module 2.8: Market Failure - Externalities and Common Pool Resources
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Negative externalities
• Positive externalities
• Tragedy of the commons
• Common pool resources
• Solutions: taxation, regulation, property rights | Frame as Negative externalities
• Positive externalities
• Tragedy of the commons
• Common pool resources
• Solutions: taxation, regulation, property rights
Could include: When commons cross borders, competition can escalate beyond market failure to international tension.
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| | |
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Positive Peace Connection: Pillar 2 (Sound Business Environment - property rights) and Pillar 5 (Good Relations with Neighbours) |
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Module 2.9: Market Failure - Public Goods
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Characteristics of public goods
• Free rider problem
• Government provision
• Evaluation | • Framing of characteristics of public goods
• Free rider problem
• Government provision
• Evaluation
Positive Peace Connection: Pillar 1 (Well-Functioning Government) |
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Module 2.10: Market Failure - Asymmetric Information (HL only)
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Adverse selection
• Moral hazard
• Solutions | • Framing of Adverse selection
• Moral hazard
• Solutions
Positive Peace Connection: Pillar 6 (Free Flow of Information) |
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Modules 2.11-2.12 (Market Power, Equity) (HL only)
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Market power and monopoly
• Market's inability to achieve equity | • Market power and monopoly
• Market's inability to achieve equity
Positive Peace Connection: Pillar 3 (Equitable Distribution) |
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UNIT 3: Macroeconomics
Modules 3.1-3.2 (Measuring Activity, AD/AS)
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| Traditional Topics | Potential Inclusions and Modifications |
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| • GDP and economic activity
• Business cycles
• Aggregate demand
• Aggregate supply
• Macroeconomic equilibrium | None |
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Module 3.3: Macroeconomic Objectives
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Economic growth
• Low unemployment
- Types of unemployment
- Costs of unemployment (personal and social)
• Low inflation
• Equitable income distribution | • Add costs of conflict and impact on neighbours. Positive Peace Connection: Pillar 7 (High Human Capital) and Pillar 3 (Equitable Distribution) |
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Module 3.4: Economics of Inequality and Poverty
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Measuring inequality (Gini coefficient, Lorenz curve)
• Poverty measurement
• Causes of inequality
• Consequences of inequality
- Impact on social stability (already mentioned)
• Policies to reduce inequality | Disccuss different types of inequality (horizontal vs vertical) "Extreme inequality, especially between identity groups (horizontal inequality), is associated with higher grievances and conflict risk"
• Policies to reduce inequality
Positive Peace Connection: Pillar 3 (Equitable Distribution of Resources) |
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Modules 3.5-3.7 (Demand Management, Supply-side Policies)
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Monetary policy
• Fiscal policy
• Supply-side policies
• Evaluation of policies | • Includecase studies on hyperinflation WWII etc. Positive Peace Connection: Pillar 1 (Well-Functioning Government) |
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UNIT 4: The Global Economy
Module 4.1: Benefits of International Trade
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| Traditional Topics | Potential Inclusions and Modifications |
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| Benefits:
• Comparative advantage
• Absolute advantage
• Specialization
• Increased choice
• Lower prices
• Competition
• Export revenues | None |
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Module 4.2: Types of Trade Protection
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Tariffs
• Quotas
• Subsidies
• Administrative barriers
• Voluntary export restraints | • Add sanctions. Positive Peace Connection: Pillar 5 (Good Relations) - when relations break down |
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Module 4.3: Arguments For and Against Trade Protection
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| Traditional Topics | Potential Inclusions and Modifications |
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| Arguments for:
• Infant industry protection
• National security
• Employment protection
• Anti-dumping
• Strategic trade policy
Arguments against:
• Inefficiency
• Retaliation
• Welfare losses
• Reduced choice | None |
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Module 4.4: Economic Integration
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| Traditional Topics | Potential Inclusions and Modifications |
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| Types:
• Free trade areas
• Customs unions
• Common markets
• Economic unions
Benefits:
• Trade creation
• Economies of scale
• Competition
• Political cooperation
Costs:
• Trade diversion
• Loss of sovereignty | Add Commercial peace theory
- Trading partners rarely go to war
- Opportunity cost of conflict increases with trade interdependence
- Historical evidence: trade correlates with peace
EU Steel Coorporation post WWII
Positive Peace Connection: Pillar 5 (Good Relations with Neighbours) |
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Module 4.5: Exchange Rates
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Floating vs. fixed systems
• Appreciation and depreciation
• Determinants of exchange rates
• Effects on economy
• Government intervention (HL) | None |
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Module 4.6: Balance of Payments
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| Traditional Topics | Potential Inclusions and Modifications |
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| • Current account
• Capital and financial account
• Causes of imbalances
• Consequences of imbalances
• Methods to correct imbalances (HL) | None |
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Module 4.7: Sustainable Development [MAJOR REVISION]
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| Traditional Topics (~5 hours) | Potential Inclusions and Modifications |
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| A. Meaning of Sustainable Development
• Environmental sustainability
• Economic sustainability
• Social sustainability
• Intergenerational equity
B. Sustainable Development Goals
• Overview of 17 SDGs
• Interconnections between goals
C. Relationship Between Sustainability and Poverty (HL)
• Vicious cycles
• Environmental degradation → poverty
• Poverty → environmental degradation | Reframe as Peace and Sustainable Development |
| | |
| | Economics, peace and development are interconnected"
- Links to economic foundations
Keep exisiting examples , but introduce peace as an enabler. There is not development without peace. Cite UN etc |
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| | What is Peace? |
| | |
| | Johan Galtung Positive and Negative Peace. |
| | |
| | IEP Global Peace Index and Positive Peace Index. |
| | |
| | Show how the 8 Pillars map to economic concepts learned. |
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Module 4.8: Measuring Development [MAJOR REVISION]
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| Traditional Topics (~5 hours) | Potential Inclusions and Modifications |
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| A. Single Indicators
• GDP/GNI per capita (PPP)
• Health indicators (life expectancy, infant mortality)
• Education indicators (literacy, enrollment rates)
• Economic/social inequality indicators
• Energy indicators
• Environmental indicators
B. Composite Indicators
• Human Development Index (HDI)
• Gender Inequality Index (GII)
• Inequality-adjusted HDI (IHDI)
• Happy Planet Index (HPI)
C. Evaluation
• Strengths and limitations of each approach
• Relationship between growth and development | Add Global Peace Index (GPI) |
| | |
| | The Peace-Prosperity Nexus:
• Same foundations (the 8 Positive Peace Pillars) create both
• Bidirectional causation:
- Development enables peace (resources for institutions)
- Peace enables development (security for investment)
• Reinforcing cycle when both present
Connecting Measurements:
• GPI measures peace outcomes (negative peace)
• HDI measures development outcomes
• Positive Peace Framework measures the causes (pillar strength)
• Countries with strong pillars score well on both GPI and HDI
|
| | |
| | Show the economic benefits of peace. |
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Module 4.9: Barriers to Economic Growth and Development [MAJOR REVISION]
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| Traditional Topics (~8 hours) | Potential Inclusions and Modifications |
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| A. Poverty Traps
• Low savings → low investment → low growth
• Circular causation diagrams
B. Economic Barriers
• Infrastructure inadequacy
• Limited access to credit
• Lack of access to technology
• Inadequate human capital
• Rising economic inequality
C. Political and Social Barriers
• Weak institutional framework
• Lack of good governance
• Corruption
• Unequal distribution of power and status
D. Geographic Barriers
• Climate and terrain
• Landlocked countries
• Resource endowment issues
E. International Barriers
• Terms of trade problems
• Trade barriers from developed countries
• Debt burden | Include conflict trap and resource curses. |
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Module 4.10: Development Strategies [MAJOR REVISION]
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| Traditional Topics (~8 hours) | Potential Inclusions and Modifications |
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| A. Market-Based Strategies
• Trade liberalization
• Privatization of state enterprises
• Deregulation
• Promotion of FDI
• Flexible labor markets
B. Interventionist Strategies
• Industrial policy
• Trade protection (infant industry)
• Government investment in infrastructure
• Price controls
• State ownership
• Redistribution policies
C. Other Strategies
• Foreign aid and development assistance
• Microfinance
• Fair trade
• Debt relief
Typically taught as extensive lists with separate categories | ORGANIZING FRAMEWORK: Building Positive Peace Pillars
Every development strategy now taught with dual lens:
1. How does it promote economic development?
2. Which Positive Peace pillar(s) does it strengthen?
This shows students that development strategies and peace-building strategies are THE SAME - they all build the 8 pillars that create both prosperity and stability.
A. Market-Based Strategies (taught more concisely - saves ~30 min)
• Trade liberalization → Strengthens Pillar 5 (Good Relations), Pillar 2 (Business Environment)
• Privatization → Strengthens Pillar 2 (Business Environment)
• Deregulation → Strengthens Pillar 2 (Business Environment)
• FDI promotion → Strengthens Pillar 2 (Business Environment)
• Flexible labor markets → Strengthens Pillar 2 (Business Environment)
Teach principles and mechanisms rather than exhaustive lists
Students already learned these concepts in Units 1-3
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Key Additions Summary
New Content Added:
- 4.7: Positive Peace Framework (8 Pillars), systems thinking, resource curse
- 4.8: Global Peace Index (GPI), peace-prosperity correlation
- 4.9: Conflict as extreme pillar breakdown
- 4.10: Pillar-building in fragile/post-conflict contexts
Content Streamlined:
- 4.8: Reduced redundant indicators (GII, IHDI covered in 3.4; HPI optional)
- 4.10: More concise treatment of market/interventionist strategy lists (teach principles)
Framework Benefits:
- Clear organizing structure for Unit 4 (eliminates scatter)
- Coherent narrative from concepts to applications
- Systems thinking showing interconnections
- Evidence-based with GPI data (163 countries, annual)
- Actionable framework showing what creates success
- Integrates existing content (students already learning about pillars)
Net Result:
- Traditional economics maintained (~90%)
- Positive Peace naturally integrated (~10%)
- More cohesive narrative through Unit 4
- Students prepared for contemporary applications
- Systems approach to understanding peace-prosperity nexus