IB Economics Exam — By focusing on the six real-world issues through the nine key concepts (scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence and intervention), students of the DP economics course will develop the knowledge, skills, values and attitudes that will encourage them to act responsibly as global citizens.
For the internal assessment, both standard level and higher-level candidates are required to produce a portfolio of three commentaries based on published extracts from the news media using the key concepts as a lens. In addition, for the external assessment, there are two examinations for standard level students and three examinations at higher level.
IBDP Economic Standard Level
Sample questions
Paper 1
- Explain two reasons why a government might set a price ceiling (maximum price) on a good.
- Using real-world examples, discuss the consequences of a price ceiling on stakeholders.
Paper 2
- Using a poverty cycle diagram, explain how the net increase in foreign direct investment (FDI) in Mexico between 2010 and 2015 might lead to an improvement in economic development.
IBDP Economics Higher Level
Sample questions
Paper 1
- Explain two tools open to a central bank to conduct expansionary monetary policy.
- Using real-world examples, evaluate the effectiveness of monetary policy to achieve low unemployment.
Paper 2
- Using an exchange rate diagram, explain how the increase in the interest rate by the Nigerian central bank might prevent the continued fall in the value of the naira.
Paper 3
- Using the data provided, and your knowledge of economics, recommend a policy that could be introduced by the government of Country X in response to the expected fall in the world price of coffee.
IB Economics HL/SL Exam Structure
- IB Economics Higher Level exams consist of 3 Papers (P1 – 30%; P2 – 30%; P3- 20%)
- IB Economics Standard Level exams consist of 2 Papers (P1 – 40%; P2 – 40%).
- 20% of your IB Economics SL and HL course grade depends on your Economics Internal Assessment.
Paper 1 – Essay paper
Duration: 1 hour 30 minutes + 5 minutes reading time during which you are not allowed to highlight the text/questions, make notes or start any of the answers
Structure of paper 1:
- Section A, where you choose 1 question out of 2, which covers Microeconomics part of the syllabus.
- Section B, where you choose 1 question out of 2, which covers Macroeconomics part of the syllabus.
- Each question in both A and B sections consists of two (a) and (b) parts, which are compulsory. Part (a) will usually be an “explain” type of question. Part (b) will mostly be a “discussion” or “evaluation” type of question.
Weight:
1 question = 25 marks, of which:
- 10 marks for part (a)
- 15 marks for part (b)
In total, Paper 1 = 50 marks.
Paper 2 – Data response
Duration: 1 hour 30 minutes + 5 minutes reading time during which you are not allowed to highlight the text/questions, make notes or start any of the answers
Structure of paper 2:
- Section A, where you choose 1 question out of 2, which covers International Economics part of the IB Economics syllabus.
- Section B, where you choose 1 question out of 2, which covers Development Economics part of the IB Economics syllabus.
- Each question in both A and B sections consists of four – (a), (b), (c), (d) parts, which are compulsory. Part (a) will usually ask to define 2 economic terms. Parts (b) and (c) will be “explain” type of questions. Part (d) will mostly be “evaluated” or “discuss” type of question.
Weight:
1 question = 20 marks, of which:
- 4 marks for part (a) [2 marks for each definition]
- 4 marks for part (b)
- 4 marks for part (c)
- 8 marks for part (d)
In total, Paper 2 = 40 marks.
Paper 3 – Maths paper (HL only)
Duration: 1 hour + 5 minutes reading time during which you are not allowed to highlight the text/questions, make notes or start any of the answers
Structure of paper 3:
- You choose 2 questions out of 3, which cover all of the IB Economics HL parts of the syllabus: Microeconomics, Macroeconomics, International Economics and Development Economics.
Weight:
- 1 question = 25 marks.
- In total, Paper 3 = 50 marks.
IB Economics exam tips which will be useful during your final and mock exams.
IB Economics Exam: Paper 1 Tips
Tip #1 – Time Management
You have 1 hour 30 minutes for this exam, plus an additional 5 minutes reading time during which you are not allowed to write or highlight.
Use your 5 minutes to:
- Decide on the questions you want to answer
- Think of diagrams you are going to use
- Recall definitions of economic terms that need to be given
That means you have 45 minutes for one question’s (a) and (b) parts.
25 marks / 45 minutes = 0.555… marks per minute.
- Since part (a) is worth 10 marks, you should spend between 15-20 minutes on it
- 18 minutes is the optimum
- 15 minutes is the best-case scenario
- However, do not make your answer too short
After part (a), you are left with 25-30 minutes for part (b) to score those 15 points.
Tip #2 – Saving Time
Time is essential during your IB Economics Exams, hence knowing how to save it is incredibly important.
- Do not draw the same diagram twice, unless you want to show a different curve shift/movement.
In part (b), you can always refer to part (a)’s diagram to illustrate your point – no need to redraw it. - Do not define an economic term more than once.
You’ve done it in part (a), do not repeat yourself in part (b), unless you feel it might have a different meaning in a different context.
(e.g. short run has 2 definitions (or 2 parts to it):
– one stating that it is a time period when at least one factor of production is fixed,
– and another one stating that it is a time period too short for a firm to enter or exit the market.) If you only used one part of the definition in part (a) and need the second one in part (b), do expand your definition.
Tip #3 – Starting Your Answers and Managing Stress
The words “You may start writing…” or “You may begin your exam…” can be terrifying and make some of us go completely blank. Well, good thing there is a way out…
You have chosen your questions and it is time to start – simply start by defining the economic terms!
- Not only is it a good habit that will help you concentrate and beat the stress, but you also get points for doing that.
- Part (a) always – and we mean ALWAYS – has an economic term in the question which needs to be defined.
After the definition(s):
- It is a good idea to draw the diagram.
- Finally, referring to the diagram, take the examiner through the whole story of how and why curves shift and/or prices/quantities change.
IB Economics Exam: Paper 2 Tips
Tip #1 – Time Management
You have 1 hour 30 minutes for 2 questions, each worth 20 points, plus 5 minutes reading time during which you cannot write or highlight.
- 45 minutes per question
20 marks / 45 minutes = 0.444… marks per minute
Part (a) – 4 marks for two definitions
- According to maths, you should spend around 9 minutes on the two definitions
- However, you can handle the definitions in 4 minutes (2 minutes for each) easily
- Especially when you have the reading time to decide how to define an economic term
Parts (b) and (c) – 4 marks each
- Spend around 8–9 minutes on each part
Part (d) – 8 marks
- Spend the remaining time out of those 45 minutes – usually around 20–25 minutes
Try not to use more than 45 minutes on one question by taking the time out of the other one (especially in part (d)).
There are easier points to be scored in the other question – this follows the law of diminishing marginal returns.
5 extra minutes spent on part (d) might add 1 point, but those same 5 minutes spent on the other question (say, defining terms) can add 2–4 points.
Tip #2 – Saving Time
- Do not define economic terms more than once
- Do not draw the same diagram more than once, unless a different movement/shift has to be shown
In part (d), you can refer to the diagrams in parts (b) and (c)
Tip #3 – Starting Your Answers
Part (a): Definitions
- Try to make it a 2-point definition
- After giving a definition, sometimes it’s a good idea to give an example (especially if it is a short definition)
- Important – always look at the context the definition is used in, as it might change the meaning of the term
Parts (b) and (c): “Explain” Questions
- Start by defining the economic term in the question, unless you’ve done it in part (a) (highly unlikely)
- Then, sketch a big, clear diagram
- Take your examiner through the whole story of how and why curves shift and/or prices/quantities change
Part (d): “Evaluate” or “Discuss” Questions
When evaluating, there are a few general ways to do that in your IB Economics exam:
- Prioritise your arguments
– The stronger/more important the argument, the earlier it must be mentioned
– Even pragmatically, this is better: if you run out of time, your strongest arguments are in place - Short run compared to long run effects
- Effect on different stakeholders
– Consumers vs. producers
– Importers vs. exporters
– Government vs. society - How are the 4 (5) macro-objectives fulfilled and/or affected?
– Low and stable inflation (around…)
General Guidelines for IB Economics
1. Learn Definitions Well
Make sure you are confident with key definitions in all four main areas of the IB Economics syllabus:
- Microeconomics
- Macroeconomics
- International Economics
- Development Economics
2. Abbreviations
Familiarize yourself with commonly used abbreviations in economics. These will save you time and space during your exam while helping you write with greater efficiency and clarity.
3. Time Management
Efficient time management is crucial. Stick to recommended timings for each section or question to ensure you complete the paper within the allotted time. Practice writing full answers within these limits.
4. Command Words
Common Command Words for Part (a):
- These command words test your knowledge and understanding.
- Understanding is usually paired with ‘application and analysis’ terms.
This means you need to explain, apply, and analyse a given situation with an example.
Part (b) Questions:
These are worth more marks and involve:
- Synthesis and Evaluation Require students to rearrange component ideas into a new whole
And make judgements based on evidence
5. Understanding the Question
The most important piece of advice:
Read the question properly. Really.
Before thinking about your answer:
- Make sure you fully understand the topic and the question that is asked
- Read the question carefully and multiple times
This ensures:
- You don’t lose easy marks by missing required information
- You save time by not including irrelevant content
The command terms in the question tell you exactly what to include and what to exclude in your answer.
Mastering IB Economics requires a strong grasp of definitions, time management, and command words. By following these structured guidelines, students can approach each paper with confidence and clarity. For personalized support, Ascend Now’s expert IB tutors are here to help you excel with tailored strategies and one-on-one guidance.
