How can I achieve a top grade?
Economics is all about models involving assumptions and diagrams. So whenever you're answering a question, you must identify the assumptions relating to it, draw a diagram illustrating your argument and give a detailed explaination of the diagram. Top mark answers will further include examples and evaluation of the economic theories and policies.
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Related Economics IB answers
All answers ▸Explain the term price elasticity of demand
Why is it ineffective to tax inelastic products as a means to deter their consumption?
Explain the meaning of the law of demand; distinguish between movements along and shifts of the demand curve.
Using diagrams and an example, define what is meant by the term "negative externality of consumption". List two policies that can be used to correct for this market failure.