IB Economics Mr.

Giannikas Initial Guidance for Extended Essay in Economics An extended essay is a daunting task in any subject area. It is good to think that an EE is written not to describe something but rather to solve a roblem or to rovide an answer to an interesting roblem. At least! to attem t an answer. It is this search for an answer that makes the essay an interesting endeavor for you. "therwise! the exercise is just dull and boring. #ere are some things to kee in mind as you consider doing your EE in economics$ %elect a to ic related to your own reality$ your town! your mom&s work 'arrow your to ic to a reasonable si(e$ local! not national o )se$ #ow does *+* iracy affect com etition between local sho s, o 'ot$ -hat are the effects of *+* iracy on the .hinese economy, Make sure to have the necessary sources available o /ou must use data you have collected yourself 0 rimary data1 2ossess a firm command of the relevant economic theory 2ose your 3uestion in the form of a hy othesis! not a descri tion o )se$ *oes the introduction of technology into the leather industry in *haravi worsen unem loyment and economic conditions in the surrounding slum areas, o 'ot$ -hat is the im act of technology on the leather industry in *haravi! India,

%ome recent Micro exam les from the IB forum 0s ecific and generic1$
4he effects of the new Bolivia economic olicies 0liberali(ation1 on the shoe5shining boys& market in 6a 2a( city. #ow did my uncle&s com any survive, 0#is uncle roduced kimonos at very high costs. /et! it was very successful1 Efficiency analysis$ .entrali(ed Breakfast or Breakfast in each residence, 0In his boarding school1 4he #amburger Market in my 4own$ A .ase of 2erfect .om etition, 0%treet sellers of hamburgers in Malaysia1 .hanges in %tandards of 6iving under .hina&s 4ransition. %urvey using three re resentative households 07amily friends1 6ife in a %udanese refugee cam . -hy is it that refugee household si(es are inversely ro ortional to household income, 0A boy goes back to his refugee cam and collects rimary data for his EE1 4he sho in my village. .an it remain a mono oly even when entry is not restricted, 04his is a sho in a tiny village in Eritrea and the EE tests the theory of contestable markets1 -hat market structure does 8 o erate in, *oes 8 achieve allocative and roductive efficiency, -ill the rivati(ation of 8 lead to increases in allocative and roductive efficiency, Is the behavior of 8 consistent with the theory of oligo oly, *o the social costs of 8 outweigh the social benefits,

%ome recent Macro9*evelo ment exam les from the IB forum$

*oes the official Austrian inflation rate truly corres ond to the inflation that students in Austria are ex eriencing, 0It is a macro to ic! but very nicely brought down to earth by relating it to the cost of living of the students themselves.1 4he liberali(ation of textile ex orts and the demise of the M7A :Multifiber Agreement; in India. #ow have small textile roducers in India been affected by this$ say! my uncle&s factory or the factory in which my mom works! or the factory round the corner. I sus ect that small firms in India will be adversely affected because it would be mainly the large firms that will achieve vast economies of scale! reduce cost! increase ex orts! lower their rices and drive the small factories out of business.

In order for me to evaluate your idea! I will need the following information$

4he research 3uestion you intend to ursue$

Exam le$ #ow effective is government intervention on the sale of cigarettes,

#ow you intend to collect your data$

Exam le$ )se sales data from three tobacco sho s before and after the im lementation of a new tax on cigarettes

4he items of economic theory you intend to use$

Exam le$ 2rice Elasticity! *emand And %u ly! .ost9Benefit Analysis! Income Effect

4he hy othesis you intend to test$

Government intervention has not reduced the sale of cigarettes.

Good 6uck< I look forward to working with you<