Archive | May 2014

Review for final exam (G11)

Attached are the exams for the two previous years, so that you can compare the structure.

However, notice that this year:

1) there will be TWO papers of 90 minutes each instead of one paper of 180 minutes.

Paper One will be Sections A and B; Paper Two will be Section C


2) Certain topics tested in previous years will not appear in this year’s exam (the construction of a weighted price index and the multiplier)

Exam A june2013 G11              Exam june2012 G11


Review for AD/AS and budget test (on Monday 19th May)+ power points

Hello all,

I decided to make this test “open book” partly because many of you have been burdened with AP and IB SL exams over the past week. But the main reason is because I want to test that you are using logical reasoning and thinking through the models, rather than memorising facts and diagrams.

During the test, you can therefore use the textbook and class notes, handouts, and worksheets, but not the internet.

Here are the answers to the multiple choice questions. By working through the multiple choice questions you will be automatically using the models to reason, so it is the best way to prepare for the text. If you answer them all, that should be sufficent review.

MACRO (AD/AS and the BUDGET)   Review questions ANSWERS

  1. C
  2. E
  3. D
  4. A
  5. D
  6. B
  7. C
  8. C
  9. A
  10. C
  11. E
  12. A
  13. A
  14. D
  15. A
  16. C
  17. E
  18. C


1.D 2.B 3.D  

 Ask me(by email)  if you do not understand the connection between the question and the answer (it may be that I got the answer wrong!).

There are also two power-points attached, which you may find useful. For the New Classical vs Keynesian power point only go up to slide 14.  You are not expected to understand the keynesian viewpoint yet.

agg d agg s                                 new classical vs keynesian viewpoint

Have a restful and enjoyable weekend!


Thomas Pikkety’s book on Wealth Inequality is being discussed widely

A recently published book “Capital in the twenty-first century” by a French economist, Thomas Pikkety, has become a best-seller and is generating a lot of debate. Some state that it is the most significant book on economics that has been published for over seventy years (i.e. since John Maynard Keynes wrote “A General Theory of Employment, Interest and Money”).

In class, we have dealt with income inequality rather than wealth inequality (remember that “wealth” is the stock concept corresponding to the flow concept of “income”). But inequality in wealth is probably more significant, both because it is far more unequally distributed than income and because those who hold a lot of wealth are able to generate very high incomes for themselves and their children. In addition to the interest and profits earned from holding wealth (whether in the form of monetary assets, or land, or real capital–machinery, buildings, firms etc), the wealthy can afford more expensive schooling and may have easier access to high-status and high-paying jobs.

This video explains the main thesis of the book in quite simple terms

Following is an interview with Thomas Pikkety .

You can enjoy his French accent while learning! In particular, notice that he discusses the correlation (positive or negative?) between economic growth and inequality.

Documents have been exported from the “old” blog

I have managed to export (not in the economist’s sense but in computer jargon) all the material from the G12 blog and import it to this new IB economics blog. Thank you again to Hayden Le for telling me how to do it.

Therefore you can now find material which should aid you in revising for the end of year exam. There is the total IB syllabus and some IB exam papers.

Of course the whole syllabus will not be tested in the final exam but you should check that you understand all themicro and macro topics up to the end of the section on aggregate demand and aggregate supply (pages 16-42), the distribution of income and the budget (pages 48 -50), and international trade and protection (pp 56-57) . I will give you a detailed study guide later.