I would like to seek clarification on whether the external cost of overfishing should be classified as an external cost of production or consumption. Based on the standard diagram, it seems more appropriate to interpret it as an external cost of production,...
Unit 2.8(4): Common-pool resourcesHigh Hugh and Kumul, thank you so much for your point. Hugh, your explanation is completely correct. I am so sorry for not replying to you, Kumul - your question must have dropped off my question feed. If you need any more clarity, just ask. Alex
Paper 3 question on cost, revenue, profit, PED and market powerThe price decreased by 15.46%. If one were to calculate the new price of the shirt, then they would want to subtract 15.46 from 100% as being 84.54%. The price of the shirt is $210 multiplied by the 0.8454 (of 1.0, see calculation before). The result...
Paper 3 question on cost, revenue, profit, PED and market powerRyan, as the answer suggests, Keynesian and free-market economists disagree fundamentally about the affect of expansionary fiscal policy. Keynesians believe that with with 'crowding out' only partially happening, right up to the point where the economy...
Fiscal policyHello, My students were asking about Activity 2, exercises b & c (classical diagram). Why is the second shift (SRAS left) considered when, although it likely happens as the next step, is not in the original question. And on part c, PL2 is marked...
Fiscal policyThank you Mark
How to write your IATrue Michael, I will change that.
Oligopoly (HL only)I heard on the Inthinking and Hachette discussion groups that the kinked Oligopoly diagram is no longer part of the IB curriculum. True? If so, can we skip activity 4b or get an update?
Oligopoly (HL only)I'm afraid that the fonts are always out of alignment when I try and put it in Word format, unfortunately so your students will have to use a pen and paper, like the old days.
Unit 4.7 - 4.10: Development crossword
Alex
Site authorHi Jinger, Thank you for your excellent question. The IB markschemes look at common-pool resources as an external cost of production and would draw a cost/benefit diagram with MSC to the left of MPC because of the negative externality. Your point...
Unit 2.8(4): Common-pool resources