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"Why do the central bank control monetary policy, but the government control fiscal policy?"

As of 1997, monetary policy has been independent from the government in order to remove any political bias or influence from the decision making. The government often had the habit of reducing interest rates...
TD
2385 Views

What is oligopoly?

An oligopoly is a type of market structure. A good example to think about would be the supermarket industry, where we can see our main suppliers of this industry are the likes of Tesco, Asda, Aldi etc. In an...
SP
Answered by Siya P. • Economics tutor
8870 Views

Discuss the consequences of imposing an indirect tax on a demerit good (unhealthy food)

This is a common question asked in past paper 1s for both SL and HL Economics. To approach this as a 15 marker, one would first define the key terms in the question such as defining a demerit good and indire...
FB
20911 Views

Using a diagram, explain why firms in monopolistic competition are neither allocatively nor productively efficient?

Assumptions: large no. of firms in the industry, relatively small firms, low barriers to entry, perfect knowledge, product differentiation Allocative efficiency: MC=AR and the market allocated resources so t...
SL
Answered by Sukirti L. • Economics tutor
9076 Views

How many diagrams do I have to draw in an answer, and how do I use them in my answer?

Diagrams in IB Economics are a very important indicator to the examiner to quickly check if you know what you're doing. You can sound as smart as you want - mess up the diagrams, or don't use them, and you'r...
LB
Answered by Lucas B. • Economics tutor
3654 Views