Economics HL

IB Questions

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Question 1 of 5

Medium25 marks
(a)

Explain how innovation in technology and improvements in labor skills through education can affect the production possibilities curve (PPC) of an economy.

[10]
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(b)

Evaluate the role of government policies in promoting innovation and increasing workforce skills as a means of achieving sustainable economic development.

[15]
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Question 2 of 5

Hard25 marks
(a)

Explain how the concept of opportunity cost affects a firm's decision to invest in new technology in a competitive market.

[10]
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(b)

Evaluate the effectiveness and potential drawbacks of government subsidies for encouraging innovation and technological advancements in industries with high initial capital costs.

[15]
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Question 3 of 5

Medium25 marks
(a)

Define and explain the concept of opportunity cost in economic decision-making. Provide examples to illustrate your explanation.

[10]
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(b)

Discuss how different economic systems address the issue of scarcity and resource allocation. Consider planned economies, market economies, and mixed economies in your discussion.

[15]
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Question 4 of 5

Medium25 marks
(a)

Explain the concept of opportunity cost and illustrate it using a diagram of a firm operating under increasing returns to scale.

[10]
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(b)

Discuss the effectiveness and ethical considerations of using price discrimination as a strategy by firms in monopolistic markets.

[15]
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Question 5 of 5

Medium25 marks
(a)

Explain how the concept of opportunity cost might impact government decision-making in allocating resources to healthcare.

[10]
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(b)

Evaluate the potential impact of implementing protectionist policies on a country's trade balance.

[15]
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