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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 interestingroblem. At least! to attemt 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 toic related to your own reality$ your town! your mom&s work

'arrow your toic to a reasonable si(e$ local! not national

o )se$ #ow does *+* iracy affect cometition between local shos,

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 0rimary data1 2ossess a firm command of the relevant economic theory

2ose your 3uestion in the form of a hyothesis! not a descrition

o )se$ *oes the introduction of technology into the leather industry in *haravi worsen

unemloyment and economic conditions in the surrounding slum areas,

o 'ot$ -hat is the imact of technology on the leather industry in *haravi! India,

%ome recent Micro examles from the IB forum 0secific 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 comany 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 ometition, 0%treet sellers of hamburgers in Malaysia1

hanges in %tandards of 6iving under hina&s 4ransition. %urvey using three reresentative households 07amily

friends1 6ife in a %udanese refugee cam. -hy is it that refugee household si(es are inversely roortional 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 monooly 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 oerate 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 oligooly, *o the social costs of 8 outweigh the social benefits,

%ome recent Macro9*eveloment examles from the IB forum$

*oes the official Austrian inflation rate truly corresond to the inflation that students in Austria are

exeriencing, 0It is a macro toic! 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 exorts 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 susect 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 exorts! lower their rices

and drive the small factories out of business.

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

4he research 3uestion you intend to ursue$

Examle$ #ow effective is government

intervention on the sale of cigarettes,

#ow you intend to collect your data$

Examle$ )se sales data from three tobaccoshos before and after the imlementation of

a new tax on cigarettes

4he items of economic theory you intend to

use$

Examle$ 2rice Elasticity! *emand And%uly! ost9Benefit Analysis! Income Effect

4he hyothesis you intend to test$

Government intervention has not reduced the

sale of cigarettes.

Good 6uck< I look forward to working with you