IB Economics exam guide (SL and HL)
Every unit of the IB Diploma Economics guide mapped to a free lesson, with the assessment for SL and HL, how Paper 1, Paper 2, Paper 3 and the internal assessment are marked, and a revision plan.
The assessment at a glance
| Component | What it is | Time | SL | HL |
|---|---|---|---|---|
| Paper 1 | Extended response: one question with two parts, (a) 10 marks and (b) 15 marks | 1 hour 15 minutes | 30% | 20% |
| Paper 2 | Data response: one question with several parts based on text and data | 1 hour 45 minutes | 40% | 30% |
| Paper 3 | Policy paper: calculations and a policy recommendation (HL only) | 1 hour 45 minutes | – | 30% |
| Internal assessment | Portfolio of three commentaries on news articles, each based on a different unit | Coursework | 30% | 20% |
Every paper can draw on every unit, and answers are judged against nine key concepts, including scarcity, choice, efficiency, equity, sustainability and intervention. Use real-world examples in Paper 1 part (b) and Paper 2 part (g): our 100 case studies are written for exactly this.
What is on the exam, unit by unit
Unit 1: Introduction to economics SL and HL
| Topic | What you must know | Learn it here |
|---|---|---|
| 1.1 | What is economics? | The Economic Problem, The Production Possibility Curve |
| 1.2 | How do economists approach the world? | The Economic Problem, Economic Systems |
Unit 2: Microeconomics SL and HL
| Topic | What you must know | Learn it here |
|---|---|---|
| 2.1 | Demand | Demand |
| 2.2 | Supply | Supply |
| 2.3 | Competitive market equilibrium | Market Equilibrium and Price, Consumer and Producer Surplus |
| 2.4 | Critique of the maximising behaviour of consumers and producers | Information Failure and Behavioural Economics, Marginal Analysis and Consumer Choice |
| 2.5 | Elasticity of demand | Elasticity |
| 2.6 | Elasticity of supply | Elasticity |
| 2.7 | Role of government in microeconomics | Government Intervention in Markets |
| 2.8 | Market failure: externalities and common pool resources | Externalities, Public Goods and Common Resources |
| 2.9 | Market failure: public goods | Public Goods and Common Resources |
| 2.10 | Asymmetric information (HL) | Information Failure and Behavioural Economics |
| 2.11 | Market power (HL) | Profit Maximisation and Firm Decisions, Monopoly, Monopolistic Competition and Oligopoly, Government Policy and Market Structures |
| 2.12 | The market's inability to achieve equity (HL) | Inequality and Redistribution |
Unit 3: Macroeconomics SL and HL
| Topic | What you must know | Learn it here |
|---|---|---|
| 3.1 | Measuring economic activity and its variations | Gross Domestic Product, The Business Cycle and Economic Growth |
| 3.2 | AD and AS | Aggregate Demand, Aggregate Supply, Macroeconomic Equilibrium |
| 3.3 | Macroeconomic objectives | Unemployment, Inflation and Price Indices, The Phillips Curve and Expectations, Macroeconomic Objectives and Policy Conflicts |
| 3.4 | Economics of inequality and poverty | Inequality and Redistribution |
| 3.5 | Monetary policy | Money and Banking, Monetary Policy |
| 3.6 | Fiscal policy (multiplier at HL) | Fiscal Policy, The Multiplier, Deficits, Debt and Crowding Out |
| 3.7 | Supply-side policies | Economic Growth and Supply-Side Policy |
Unit 4: The global economy SL and HL
| Topic | What you must know | Learn it here |
|---|---|---|
| 4.1 | Benefits of international trade | Comparative Advantage |
| 4.2 | Types of trade protection | International Trade and Public Policy, Trade Protection and Economic Integration |
| 4.3 | Arguments for and against protection | Trade Protection and Economic Integration |
| 4.4 | Economic integration | Trade Protection and Economic Integration |
| 4.5 | Exchange rates | The Foreign Exchange Market |
| 4.6 | Balance of payments | Trade, Exchange Rates and the Balance of Payments |
| 4.7 | Sustainable development | Economic Development |
| 4.8 | Measuring development | Economic Development |
| 4.9 | Barriers to growth and development | Economic Development |
| 4.10 | Growth and development strategies | Economic Development |
How answers are marked
- Paper 1 part (a): explain with a correct, fully labelled diagram and clear definitions.
- Paper 1 part (b): evaluate a policy or issue using a real-world example, discussing stakeholders, short run versus long run and a justified conclusion.
- Paper 2: define terms, calculate accurately, draw the diagram asked for, then use the text and data as evidence in the final extended part.
- Paper 3 (HL): show every step of each calculation and write a policy recommendation that weighs up advantages, disadvantages and alternatives.
- Internal assessment: each commentary links one news article to one key concept, with diagrams, analysis and evaluation, in 800 words or fewer.
Ready to practise at exam level?
Economics Made Simple covers every unit with diagrams and full answer keys. The bundle adds 450 practice questions, flashcards and 100 case studies.