IB Economics · Unit 2 of 6

Unit 2: Microeconomics

Unit 2 of IB Economics covers Microeconomics. This unit contains 12 topics and 31 sub-topics. Below you'll find free study notes, flashcards, and exam preparation resources for every topic in this unit.

12 topics31 sub-topics

Exam technique guide

What Unit 2 covers

Unit 2 focuses on individual markets: demand and supply, price signals, government intervention, and why markets sometimes fail.

Topics in Unit 2

2.1

Demand

3 sub-topics

2.2

Supply

3 sub-topics

2.3

Competitive market equilibrium

3 sub-topics

2.4

Critique of maximizing behaviour of consumers and producers

3 sub-topics

2.5

Elasticity of demand

3 sub-topics

2.6

Elasticity of supply

2 sub-topics

2.7

Role of government in microeconomics

3 sub-topics

2.8

Market failure: externalities and common pool resources

3 sub-topics

2.9

Market failure: public goods

2 sub-topics

2.10

Market failure: asymmetric information

2 sub-topics

2.11

Market failure: market power

2 sub-topics

2.12

The market’s inability to achieve equity

2 sub-topics

Study tip: Work through the topics in order — each builds on concepts from the one before. Start with notes, then reinforce with flashcards and practice questions.

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