EE+in+Economics

Extended Essay in Economics  Choice of topic Students should undertake an essay that uses the core principles of economics as a basis for researching a particular topic. Students should use a combination of primary and secondary research as the basis for their extended essay, and should apply the accepted theories, tools and techniques of the subject to the topic chosen. Essays should not be historical. They should be related to economic information that is no more than three years old. Essays that are too retrospective, for example, “What was the impact of the South-East Asian crash on Thailand during 1990–1995?”, almost invariably become descriptive. Students should ensure that their research question can be answered using economic concepts and theories, and that the question does not lean too heavily towards business and management. The topic chosen should provide opportunities for some critical analysis of the data collected. Topics that depend entirely on summarizing general secondary data should be avoided, as they are likely to lead to an essay that is essentially narrative or descriptive in nature. However, the effective use of relevant secondary data to answer the research question will be fully rewarded by the examiner. Restricting the scope of the essay will help to ensure a clear focus, and will also provide opportunities for demonstrating detailed economic understanding and critical analysis. Choosing a research question that is made up of more than one question is unlikely to result in a successful essay—for example, “Is the café industry in Vienna an example of oligopoly and, if so, do the cafés collude with each other?” or “What is the effect of interest rate policy on aggregate demand in Greece and what should the government do to increase aggregate demand?”. In the first example, the answer to the first part of the question must be affirmative in order to proceed with the essay. If not, the second part of the question cannot be answered. In the second example, the scope of the essay is simply too wide.  The following examples of titles for economics extended essays are intended as guidance only. The pairings illustrate that focused topics (indicated by the first title) should be encouraged rather than broad topics (indicated by the second title). · “What market form characterizes the petrol supply industry in my area of Madrid?” **is better than **“What is the market structure of the Spanish petroleum industry?”.  · “What is the effect of the recent imposition of a minimum wage in Austria on unemployment in the  fast food industry in Graz?” **is better than **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">“What has been the effect of the minimum wage on <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">unemployment in Austria?”. <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: Symbol; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol; msoansilanguage: EN-US; msobidifontfamily: Symbol; msobidifontweight: bold; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">“To what extent has the fall in the exchange rate of the US dollar affected the tourist industry in <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Carmel, California?” **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">is better than **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">“How has the fall in the exchange rate of the US dollar affected <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">the US economy?”. <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: Symbol; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol; msoansilanguage: EN-US; msobidifontfamily: Symbol; msobidifontweight: bold; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">“What has been the economic effect of water privatization on the farming industry in my region of <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Zambia?” **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">is better than **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">“How has the privatization of water affected Zambia?”. It may help if the student further defines the topic chosen for study in the form of a research question, followed by a statement of intent that indicates which broad process is going to be used in answering the question. In this way, the approach to the topic chosen may be even further clarified. Some examples of this could be as follows: <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> || <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Has the Kenyan central bank’s policy of interest rate cuts led to a rise in new car sales in Nairobi? || <span style="color: #949699; font-family: MyriadPro-Regular; font-size: 20pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;"> Treatment of the topic <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Students may be encouraged to carry out original research on a topic within any of the syllabus sections in the current //<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-It;">Economics guide //<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">. One advantage of doing an essay on a microeconomics topic is the ability to carry out primary research in the form of surveys, questionnaires or interviews. Nonetheless, it is also possible to carry out a highly successful analysis of a question related to macroeconomics, international economics or development economics, as long as the data and information collected are used to construct a clear, reasoned argument in response to a sufficiently narrow research question. The main danger of choosing a question from these areas is in choosing a research question that is inappropriately wide. In addition, it is very important that the question is original and has not already been answered in secondary sources. In this case, the danger would be that the student might simply present a summary of secondary sources rather than a new reasoned argument. <span style="font-family: 'Calibri','sans-serif'; font-size: 11pt;">Students should integrate relevant economic theory with the evidence obtained through the research. An essay that delivers the theory as a separate section of the essay and does not apply it to the specific research question is unlikely to be successful in terms of analysis using the theory. Good critical analysis and evaluation can be demonstrated through sound assessment and judgment of the extent to which the relevant theory is useful in answering the research question. An extended essay in economics is a formal essay, so students must be sure to adopt **<span style="font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-bidi-font-family: MyriadPro-Bold;">one **<span style="font-family: 'Calibri','sans-serif'; font-size: 11pt;">of the common **standards of presentation of research essays.** <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;"> <span style="font-family: 'Calibri','sans-serif'; font-size: 10pt; font-weight: normal;">Source: IBO, Extended Essays, 2007, pp.79-81 <span style="color: #949699; font-family: 'Calibri','sans-serif'; font-size: 20pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Further Examples of Questions <span style="font-family: 'Calibri','sans-serif'; font-size: 11pt;">Does the official Austrian inflation rate truly correspond to the inflation that students in Austria are experiencing?
 * **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">Topic ** || **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">Pricing at the local supermarket ** ||
 * <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold; mso-bidi-font-weight: bold;">Research Question || <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Will the recent policy of cutting bakery prices lead to increased revenue for the Safeway supermarket in Ryde, Sydney? <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;"> ||
 * <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold; mso-bidi-font-weight: bold;">Approach || <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Primary research is conducted through observation and supported by secondary research, such as company records and textbooks. This results in a detailed examination of elasticity and its relationship with total revenue. ||
 * **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">Topic ** || **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">The economic impact of privatization ** ||
 * <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold; mso-bidi-font-weight: bold;">Research Question || <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">To what extent did Matav, a Hungarian telecommunications company, become more efficient post-privatization? ||
 * <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold; mso-bidi-font-weight: bold;">Approach || <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Primary data is collected through interviews with company management (qualitative research) and secondary data is collected by accessing company reports. Economics texts are used for researching the economic theory of privatization. ||
 * **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">Topic ** || **<span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold;">The impact of monetary policy ** ||
 * <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">Research question
 * <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Bold; mso-bidi-font-weight: bold;">Approach || <span style="color: black; font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US; mso-bidi-font-family: MyriadPro-Regular;">A consumer questionnaire (quantitative research) is circulated and interviews (qualitative research) are carried out with sales managers of new car firms. Government macroeconomic statistics (secondary research) are also accessed. ||

In what ways is the European Market for Salmon affected by the Protectionism imposed by the EU Commission? (based on a case study)

The effects of free market pricing on the shoe-shining boys' market in La Paz city. (Liberalization effects)

Consumption in Palestinian households during Ramadan. Do we actually spend less when prices rise? (References to MPC and MPS and bits of microeconomics as well)

The shop in my village [Ethiopia]. Can it remain a monopoly even when entry is not restricted? (A micro topic but within an African context)

The Economics of a refugee camp in Sudan (in which I lived). (Interrelationships between poverty and size of households) <span style="font-family: 'Calibri','sans-serif'; font-size: 11pt; mso-ansi-language: EN-US;"> How fair is Fair Trade coffee? (based on a case study) How effective is Kanton Zug in applying economic principles to its recycling plant? To what extent has the European airline industry become a contestable market with the entry of no-frills airlines? Case study - Easyjet. Is Australia’s domestic airline industry a contestable market? How is price discrimination used to maximise profits within the airline industry? Case study - Cathay Pacific. <span style="font-family: 'Calibri','sans-serif'; font-size: 11pt;">Does outsourcing illustrate the benefits of free trade? Case study of Walmart in Shenzhen.