Glossary of IB Economics Terms
IB HL and SL Economics Glossary
There are currently 9 names in this directory beginning with the letter I.
Import substitution policies
Import substitution policies are designed to encourage the domestic production of goods, rather than importing them. The strategies encourage protectionism.
Income elasticity of demand
Income elasticity of demand (YED) is a measure of the responsiveness of demand for a good to a change in income
An Indirect tax is an expenditure tax on a good or service. It is shown as an upward shift in the supply curve as costs of production rises when an indirect tax is imposed
Infant industries are new industries which do not benefit from economies of scale that need protection to compete with imports
Inferior goods are goods which demand increases as income rises. Inferior goods have positive income elasticity
Inflationary gap is a situation where the economy is (in equilibrium) at a level of output that is greater than the full employment level of output or above potential output