School IB economics: Iran’s energy crisis forces attempt to shift from oil to solar

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

• 2.1 Demand, 2.2 Supply, 2.8 Market failure — externalities, 4.7 Sustainable development

Read the article and then answer the questions:

Iran’s energy crisis forces attempt to shift from oil to solar

Questions

• Using information from the article, describe what is happening to the use of solar energy in Iran [2]

• Explain two factors that might account for the increase in demand for solar energy in Iran [4]

• Explain two factors that might account for the increased supply of solar energy in Iran [4]

• Using a cost/benefit diagram, explain how the use of fossil fuels as an energy source in Iran might lead to negative externalities of production [4]

• Using a cost/benefit diagram, explain the impact the increased use of solar energy might have on market failure in Iran’s energy market [4]

• Define the term sustainable economic development [2]

• Explain one way the use of solar energy in Iran might contribute to its sustainable economic development [4]

Alex Smith, Sevenoaks School, InThinking/thinkIB