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IB Economics: Curriculum Modules & Topics Comparison

UNIT 2: Microeconomics​

Modules 2.1-2.7 (Demand, Supply, Elasticity, Government Intervention)​

Traditional TopicsPotential Inclusions and Modifications
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)

Module 2.8: Market Failure - Externalities and Common Pool Resources​

Traditional TopicsPotential Inclusions and Modifications
• 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, and solutions: taxation, regulation, property rights.

Could include: When commons cross borders, competition can escalate beyond market failure to international tension.

Positive Peace Connection: Pillar 2 (Sound Business Environment - property rights) and Pillar 5 (Good Relations with Neighbours)

Module 2.9: Market Failure - Public Goods​

Traditional TopicsPotential Inclusions and Modifications
• Characteristics of public goods
• Free rider problem
• Government provision
• Evaluation		Framing of characteristics of public goods, free rider problem, government provision, and evaluation.

Positive Peace Connection: Pillar 1 (Well-Functioning Government)

Module 2.10: Market Failure - Asymmetric Information (HL only)​

Traditional TopicsPotential Inclusions and Modifications
• Adverse selection
• Moral hazard
• Solutions		Framing of adverse selection, moral hazard, and solutions.

Positive Peace Connection: Pillar 6 (Free Flow of Information)

Modules 2.11-2.12 (Market Power, Equity) (HL only)​

Traditional TopicsPotential Inclusions and Modifications
• Market power and monopoly
• Market's inability to achieve equity		Market power and monopoly, and market's inability to achieve equity.

Positive Peace Connection: Pillar 3 (Equitable Distribution)