IB ECONOMICS HL CALCULATIONS
Total revenue test
Revenue = price x quantity
if demand is elastic, when price increases total revenue decreases
If demand is inelastic, when price increases total revenue increases
PRICE ELASTICITY OF DEMAND (PED)
Economics Homework 10.1
2. List the reasons why the official unemployment rate may not reflect the true
social burden of unemployment. Explain whether the official numbers overstate or
understate true employment in light of each reason
Economics Homework 11.3
1. Explain this claim: Social factors are the most important factor in controlling
increases in population growth.
Population growth tends to happen in countries where the standard of living and
the cost of havin
Economics Homework 10.3
1. What is the role of aggregate demand in eliminating the GDP gap? How does the slope of
the AS curve affect the fiscal policy actions necessary to eliminate the GDP gap?
Aggregate Demand determinants consist of
What were the ideas of the Chicago Boys?
They had ideas for changed in economic policies by promoting efficiency and fairness
of market competition. They believed that the government was intervening too much in
Economics Homework 12.1
1. The switch from subsistence farming to cash crop farming can be considered
very risky. Why?
Subsistence farming is the type of farming that LDCs and poorer families take upon
simply because the risk of failure is much less. If a
Exchange rate: The price of one type of money in terms of another.
Appreciation of currency: A rise in the value of the currency.
Depreciation of currency: A fall in the value of the currency
Devaluation of currency: a decrease in the value of th
Economics Study Guide- Unit 12
Foreign aid: gift or low cost loan made to an LDC.
Bilateral Aid: flows from 1 country to another.
-Aid does not go from donor to person.
Donor govt the needy
-Usually funds are for a specific project
ex: military aid, food
2. Why does the health of the economy affect the number of people living in
Poor health influences greatly on how much poverty there is in the economy because
poverty is a cycle built up of many factors that cause
Economics Homework 8.1
What is a financial intermediary? Give an example of how your bank or credit
union serves as a financial intermediary between you and the rest of the economy.
Financial intermediaries are the middle men between a