What is equity IB economics?

Equity: In contrast to equality, which describes situations where economic outcomes are similar for different people or different social groups, equity refers to the concept or idea of fairness. Fairness is a normative concept, as it means different things to different people.

What is poverty IB economics?

The poverty cycle (trap) Households spend all of their income when their incomes are very low. LDCs are relatively poor, and as such these countries have a low marginal propensities to save and a high marginal propensity to consume.

Which of the following is a central theme used to study economics in the Ibdp?

The IB Diploma Programme Economics course forms part of group 3 – individuals and societies. At the heart of economic theory is the problem of scarcity. While the world’s population has unlimited needs and wants, there are limited resources to satisfy these needs and wants.

What is economic well-being IB economics?

Economic well-being is defined as having present and future financial security. It also includes the ability to make economic choices and feel a sense of security, satisfaction, and personal fulfillment with one’s personal finances and employment pursuits.

Is an economy in which the decisions of households and firms interacting in markets allocate economic resources?

*Market economy: an economy that allocate resources through the decentralized decisions of many firms and households as they interact in markets for goods and services.

What are the main concept of economics?

Four key economic concepts—scarcity, supply and demand, costs and benefits, and incentives—can help explain many decisions that humans make.

What is IB market failure?

In the IB Economics course, market failure refers to how a market economy (free markets) can often fail to achieve the correct outcomes for individuals and society. Market failure is essentially about allocative inefficiency and the overallocation or under allocation of resources to producing a good or service.

What is the difference between equity and inequality?

According to the World Health Organization (WHO), equity is defined open_in_new as “the absence of avoidable or remediable differences among groups of people, whether those groups are defined socially, economically, demographically or geographically.” Therefore, as the WHO notes, health inequities involve more than …

What is the cycle poverty?

The cycle of poverty begins when a child is born into a poor family. On paper, the cycle of poverty has been defined as a phenomenon where poor families become impoverished for at least three generations. …