1
Demand, supply, and the market equilibrium1Key concepts1
The market1
Ceteris paribus1
The law of demand2
Determinants of demand3
The law of supply3
Determinants of supply4
Movement （quantity demandedsupplied） vs． shift5
Why does price tend to form around the equilibrium price5
How can the market equilibrium be changed6
Resource allocation and the signaling and incentive functions of price7
Scarcity7
Market efficiency8
Example questions and answers8
Question group 1：Determinants of demand and supply8
Question group 2：The signaling and incentive functions of price10
Exercises122
Elasticities14Key concepts14
Price elasticity of demand （PED）14
PED， revenue， and marginal revenue15
Cross price elasticity of demand （XED）16
Income elasticity of demand （YED）16
Price elasticity of supply （PES）17
Example questions and answers18
Question group 1：Determinants of elasticities18
Question group 2：Usefulness of the knowledge of elasticities20
Exercises263
Taxes， subsidies， and price controls
（government intervention in the free market）29Key concepts29
Indirect tax29
Market outcomes of an indirect tax30
Impact on stakeholders from an indirect tax31
How to find the tax burden （tax incidence） for consumers and
producers （HL only）31
Subsidy32
Price ceilings （maximum prices）33
Price floors （minimum prices）34
Impacts on stakeholders35
Example questions and answers35
Question group 1：Comparing the effects of government interventions35
Question group 2：Government intervention vs． the free market40
Exercises474
Market failure49Key concepts49
Market failure49
Social welfare and allocative efficiency50
Public goods51
Excludability and rivalry51
Common access resources52
Externalities53
Positive externality of production54
Positive externality of consumption （merit goods）56
Negative externality of production57
Negative externality of consumption58
Asymmetric information （HL only）59
The abuse of monopoly power （HL only）59
How to explain that a certain case is one of market failure60
Common evaluation perspectives on government intervention
in market failure61
Example questions and answers61
Question group 1：Explaining market failure61
Question group 2：Evaluating government responses to market failure64
Exercises675
Cost， revenue， and profit （HL only）69Key concepts69
The short run （microeconomics）69
The law of diminishing returns70
The concept of the margin70
Economic cost71
Opportunity cost71
Marginal cost71
Average revenue， marginal revenue and total revenue71
The long run （microeconomics）72
LRAC and （dis）economies of scale73
Economic profitloss74
The break even point and the shut down point74
How MC and MR help us find the profit maximizing quantity of
production75
How to find profitloss with AC and AR76
Example questions and answers77
Question group 1：SRAC and LRAC77
Question group 2：Profit maximization80
Exercises846
Market structures （HL only）88Key concepts88
How market structures compare88
Perfect competition89
Monopolistic competition90
Oligopoly90
Game theory：the prisoner s dilemma91
Monopoly92
Common barriers to entry93
Market structures and efficiencies93
Example questions and answers94
Question group 1：The short run and the long run94
Question group 2：Comparing market structures97
Exercises1027
Price discrimination （HL only）105Key concepts105
Price discrimination105
Conditions for price discrimination105
Third degree price discrimination106
Exercises1078
The macroeconomic equilibrium108Key concepts108
Aggregate demand （AD）108
The macroeconomic short run and long run111
Short run aggregate supply （SRAS）111
Long run aggregate supply （LRAS）112
The new classical short runlong run transition113
Keynesian aggregate supply114
The Keynesian multiplier （HL only）115
Example questions and answers115
Question group：The short run and the long run115
Exercises1229
Unemployment124Key concepts124
Unemployment124
Unemployment rate124
Cyclicaldemand deficientKeynesian unemployment125
Frictional unemployment， structural unemployment， and seasonal
unemployment126
Why unemployment is undesirable127
Can unemployment be eliminated127
Example questions and answers127
Exercises12710
Inflation130Key concepts130
Inflation130
Consumer price index （CPI）130
Core inflation131
Producer price index （PPI）131
Macroeconomic objective：low inflation131
Demand pull inflation132
Cost push inflation132
Policy solutions to inflation133
Phillips curve133
Example questions and answers133
Question group：Consequences of inflation and deflation133
Exercises13611
Economic growth138Key concepts138
Economic growth138
Gross domestic product （GDP）138
Real vs． nominal138
The production possibilities curve （PPC）139
Investment and growth140
Consequences of economic growth140
Example questions and answers141
Question group：Economic growth and the standard of living141
Exercises14412
Equity in the distribution of income146Key concepts146
Equity vs． equality in the distribution of income146
The market economy and equality146
The market economy and equity147
Income redistribution policies and efficiency147
The Lorenz curve and the Gini coefficient147
Absolute poverty and relative poverty148
Ways to mitigate income inequalityinequity149
Tax as a means to income redistribution149
Transfer payment150
Example questions and answers151
Exercises15113
Macroeconomic objectives and policies153Key concepts153
Demand side policies153
Fiscal policy154
Fiscal policies and AD154
Automatic stabilizers155
Fiscal policies and long term growth （or the supply side effects）155
The effectiveness of fiscal policies155
Monetary policy157
What to target? Money supply， interest rates， or inflation rate157
Monetary policies and AD158
The effectiveness of monetary policies158
Supply side policies159
Interventionist supply side policies159
Market based supply side policies160
Policies， theoretical perspectives， and macroeconomic objectives161
Conflicts among macroeconomic objectives162
Unemployment rate， inflation rate， and the Phillips curves（HL only）163
Example questions and answers164
Question group 1：Fiscalmonetary policies vs． supply side policies164
Question group 1：Conflicts among objectives and policies173
Exercises17814
Measurement problems180Key concepts180
Macroeconomic variables and measurement180
Example questions and answers181
Question group：Difficulties in measurement181
Exercises18315
Free trade vs． protectionism184Key concepts184
Free trade184
Absolute advantage （HL only）185
Comparative advantage （HL only）186
Limitations of the theory of comparative advantage （HL only）187
The World Trade Organization （WTO）188
Trade protectionism189
The base model of international trade190
Tariff191
Quota192
Subsidy193
Administrative barriers195
Example questions and answers195
2 mark definitions195
4 mark explanation questions195
8 mark evaluation questions197
Exercises19916
Exchange rate201Key concepts201
Exchange rate201
Floating exchange rate system201
Factors that influence the exchange rate201
Changes in exchange rates in a floating exchange rate system202
Evaluating the free exchange rate system203
Fixed exchange rate system204
Changes in exchange rates in a fixed exchange rate system204
How central banks fix the exchange rate204
Evaluating the fixed exchange rate system205
Managed exchange rate system205
Consequences of an overvalued currency206
Example questions and answers206
2 mark definitions206
4 mark explanation questions207
8 mark evaluation questions208
Exercises21117
Balance of payments213Key concepts213
Balance of payments213
Current account213
Capital account214
Financial account214
The foreign exchange reserves215
Relationship between these accounts215
Current account deficit216
Implications of a persistent current account deficit （HL only）216
Methods to correct a persistent current account deficit （HL only）216
The Marshall Lerner condition （HL only）217
The J curve218
Current account surpluses218
Implications of a persistent current account surplus （HL only）219
Example questions and answers219
2 mark definitions219
4 mark explanation questions219
8 mark evaluation questions220
Exercises22318
Economic integration and terms of trade225Key concepts225
Economic integration225
Levels of economic integration225
Preferential trade agreement （PTA）226
Free trade area （FTA）226
Customs union226
Common market226
Comparing FTA， customs union， and common market （HL only）227
Economic and monetary union227
Trade creation （HL only）228
Trade diversion （HL only）229
Terms of trade （HL only）229
Short run causes to changes in terms of trade （HL only）230
Long run causes to changes in terms of trade （HL only）230
Example questions and answers231
2 mark definitions231
4 mark explanation questions231
8 mark evaluation questions232
Exercises235
內容試閱：
有些学生一接触IB经济学就开窍了，而大部分学生则找不到方向，容易一直迷失下去。对于后一类学生来说，参考别的同学的优秀答题范例固然有用，但轮到自己答题时还是不行本来没有信心的，现在可能还是没有。我们知道，IB经济真的不简单。你呢？你想写出更棒的IB经济答卷吗？想知道什么样子的答题思路才是IB思路吗？那么本书正是为你准备的。我们在前言之后加入了一个How to use this book的章节。你可以通过它了解本书具体的使用方法。不过在此之前，我们还是想稍微介绍一下指导本书设计方向的理念： 认知学徒制（cognitive apprenticeship）。学徒的概念历史悠久。学徒跟着师傅在工场实习，逐渐通过观察和练习来掌握知识技能。学徒制之所以有效，是因为学徒想要学习的技能是可见的。在课堂里可就不一样了： 教师经常告诉学生该做什么，却不一定会说明每一步背后的原因，学生也就看不见教师大脑里的解题过程。认知学徒制就是要让教师把思维的过程表达出来，这样学生在解题时就有了明确的可以模仿的对象 Collins A， 2006． Cognitive apprenticeship［C］R． Sawyer （Ed．）． The Cambridge handbook of the learning sciences． New York： Cambridge University Press： 4760．。本书最显著的特色正是建立在认知学徒制的基础之上的。本书不仅提供了概念解释和例题答案，还进一步说明了我们做出这些解释和答案的缘由。我们认为最差的应试策略是背书，虽然说背书在某种程度上来说，帮助学生解决了语言组织问题。而最佳的应试策略则是在理解消化书本的基础上根据题目的要求来回答。本书两方面都照顾到了要守住IB 5分的话，背本书提供的解释就好了；要冲击IB 7分的话，则应该尽力去理解本书中的各种注释条目。选择权在你。不论你怎么选，本书的目的都在于提高你的效率。这本书的篇幅较长，因此不能没有重点。我们认为论述题（essay questions）对于非英语母语的学生来说是最困难的，特别是没有接受过系统论述题训练的中国学生。鉴于论述题集中于Paper 1和Paper 2，因此本书将关注点放在了这两张考卷上。Paper 3以数学为主，对中国学生来说压力较小，所以我们并没有将其纳入本书的讨论范围。为了便于IB学生使用，本书的文字正斜体和经济学图等格式均根据IB经济学惯例，并参照IB经济学考纲及国际教材的格式规范。本书能够最终成稿，离不开戴菁和王文轩两位老师提供的宝贵的审稿意见。在此我们向两位老师表示由衷的感谢。对于本书，虽然我们已尽心去写，力求让学生能够理解每一张考卷的考点，但要做到完美显然是不可能的。我们期待读者的反馈，这样才能让我们把本书改得越来越完善、越来越实用。
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