IB Economics

IB Economics HL and SL — diagram mastery, IA commentary coaching, chain of reasoning, Paper 3 quantitative preparation for PPE and Finance applicants.

Book Free Diagnostic Test View All Economics Courses

What is IB Economics?

IB Economics combines microeconomic and macroeconomic theory with global real-world application, developing students' ability to analyse markets, evaluate government policies, and understand how international economics shapes the world. The course is assessed through a combination of written papers and an Internal Assessment portfolio of three economic commentaries. Higher Level Economics adds further depth in microeconomic theory — market structures, theory of the firm, and market failure — alongside additional macroeconomic content. IB Economics is highly regarded by universities for PPE, Economics, Finance, and International Relations degree programmes. At Improve ME, our IB Economics tutors build the diagram mastery, chain-of-reasoning skills, and IA commentary technique that distinguish 6 and 7 candidates from the rest of the field.

Qualification

Ages 16-18

Age range

SL & HL

Exam boards

IB Economics Course Content

SL & HL coverage plus Internal Assessment (IA) support and exam strategy.

Microeconomics

Competitive markets — demand and supply, market equilibrium, price mechanism, shifts in demand and supply, consumer and producer surplus, allocative efficiency
Elasticity — price elasticity of demand (calculation, determinants, total revenue), price elasticity of supply, income elasticity, cross elasticity — applications and implications
Government intervention — indirect taxes, subsidies, price ceilings and floors — impact on welfare, consumer and producer surplus, deadweight loss
Market failure — public goods (non-excludable and non-rival), merit and demerit goods, positive and negative externalities, common pool resources, asymmetric information
Theory of the firm (HL) — short run and long run production, costs (fixed, variable, average, marginal), economies and diseconomies of scale, profit maximisation (MR = MC)
Market structures (HL) — perfect competition, monopolistic competition, oligopoly (kinked demand curve, game theory, collusion), monopoly — diagrams, efficiency, and evaluation
Labour markets (HL) — demand for labour, wage determination, monopsony, minimum wage, trade unions, discrimination

Macroeconomics

Measuring national income — GDP calculation methods (expenditure, income, output), GNI, purchasing power parity, limitations of GDP as a welfare measure, HDI and alternative measures
Aggregate demand and supply — AD components and determinants, SRAS and LRAS, output gaps, economic cycle, demand and supply-side shocks
Macroeconomic objectives — economic growth (actual and potential), low inflation (CPI measurement, demand-pull and cost-push causes), low unemployment (types and natural rate), balance of payments equilibrium
Fiscal policy — government expenditure and taxation, budget positions, multiplier effect, automatic stabilisers, supply-side fiscal policy — advantages and limitations
Monetary policy — interest rates and money supply, central bank independence, quantitative easing, inflation targeting — transmission mechanisms and limitations
Supply-side policies — labour market reforms, privatisation, deregulation, education and training investment — evaluation of effectiveness
International trade — comparative advantage, terms of trade, free trade arguments, protectionism (tariffs, quotas, subsidies) — costs and benefits, WTO, trading blocs

IA Commentaries and Global Economy

Internal Assessment portfolio — three commentaries on different sections of the syllabus, each based on a different published news article; maximum 800 words per commentary
Commentary structure — introduction with theoretical context, diagram, analysis of the article using economic theory, evaluation of multiple perspectives, conclusion
Diagram selection and drawing — choosing the appropriate diagram for the article's content; drawing and annotating it correctly with specific labels and shifts
Key concepts — scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, intervention, markets — must be explicitly linked in at least one commentary
Development economics — measuring development (GDP, GNI per capita, HDI, HPI), factors constraining development, strategies (trade vs aid, import substitution, export-led growth, IMF and World Bank)
Globalisation — benefits and costs, impact on income distribution, multinational corporations, financial globalisation, global commons

Assessment Structure

We support both Internal Assessment (IA) and final exams with a structured plan, feedback cycles, and timed practice. SL and HL requirements are clearly differentiated.

Paper 1

Extended Response — Micro & Macro

SL: 75 mins, 30% — extended response; two questions each with two parts (part a and part b); both parts must be answered; evaluative essay with diagram expected.
HL: 105 mins, 30% — same format; longer time for deeper analysis.

Paper 2

Data Response

SL & HL: 105 mins; SL 40%, HL 30% — data response; two questions based on stimulus material; tests application of theory to real-world data.

Paper 3 (HL only) + IA

Policy Analysis + IA Portfolio

HL only: Paper 3 — 105 mins, 20% — policy analysis questions requiring quantitative (elasticity, multiplier, index numbers) and qualitative analysis.
IA portfolio: three commentaries (max 800 words each), each on a different syllabus section and different article; SL 30%, HL 20%.

Assessment Framework

IB DP (SL)

IB DP (HL)

Internal Assessment (IA)

Not sure which board your child is on? We'll check at your free Diagnostic Test.

Our IB Economics Teaching Approach

Diagram Mastery

Diagrams are worth marks in virtually every Economics question. We drill all key diagrams — supply and demand with welfare analysis, externalities with deadweight loss, AD/AS with output gaps, cost curves, market structure diagrams — until students can draw and annotate them perfectly under time pressure with correct labelling and shifts.

IA Commentary Coaching

The IA portfolio is worth 20–30% of the final grade and consists of three commentaries that must each use different sections of the syllabus. We coach students through article selection, diagram choice, commentary structure, economic analysis, and evaluation — with detailed written feedback on each draft against the IB criteria.

Chain of Reasoning Development

IB Economics mark schemes reward extended chains of economic reasoning — moving from cause through mechanism to effect with theory, diagrams, and real-world context. We develop this skill explicitly in every session rather than relying on students to acquire it naturally.

Paper 3 HL Quantitative Preparation

Paper 3 HL includes quantitative questions — elasticity calculations, multiplier calculations, index numbers — that many HL students underprepare for. We ensure all HL students are confident with the required mathematical skills well before the exam.

Why Improve ME for IB Economics?

IB Economics specialists at both HL and SL
HL additional content — Theory of the Firm, market structures, labour markets, Paper 3
IA commentary coaching — article selection, structure, diagrams, and evaluation
Diagram mastery training across all key micro and macro diagrams
Chain of reasoning development — the core analytical skill
Paper 3 HL quantitative skills preparation
Development economics and globalisation in depth
Strong PPE, Economics, and Finance applicant outcomes
one-to-one and small group sessions available
Licensed tutoring centre at Gold & Diamond Park, Dubai since 2010

FAQ

Frequently Asked Questions

Everything you need to know about Economics at Improve ME

How many commentaries are in the IB Economics IA portfolio?

The IA portfolio consists of three commentaries, each based on a different published news or media article, and each addressing a different section of the syllabus — one micro, one macro, and one from international or development economics. Each commentary is a maximum of 800 words plus a diagram. The portfolio is worth 20% of the HL grade and 30% of the SL grade.

What is Paper 3 in IB Economics HL?

Paper 3 is an HL-only paper worth 20% of the final grade. It includes a mixture of short quantitative questions and longer written responses based on an extract. The quantitative component tests calculations including elasticity, multiplier, index numbers, and terms of trade — areas that many HL students underprepare for. We treat Paper 3 preparation as a specific and important part of our HL Economics programme.

How important are diagrams in IB Economics?

Diagrams are essential — they appear in Paper 1 essays (where a diagram is expected in part b responses), Paper 2 data response questions, and IA commentaries. A well-drawn, correctly labelled diagram with accurate shifts and welfare areas can earn marks directly and supports the written analysis around it. A missing or incorrect diagram in a question that expects one will always cost marks.

Can you help with article selection for IA commentaries?

Yes — article selection is one of the most important IA decisions students make. The article must be current, from a reputable source, clearly connected to a specific section of the syllabus, and have sufficient economic content to support 800 words of analysis. We help students identify appropriate articles, evaluate whether they are suitable, and ensure their three commentaries cover different syllabus sections as required.

Is IB Economics HL significantly harder than SL?

HL Economics adds substantial additional content in microeconomics — Theory of the Firm, detailed market structures including oligopoly and game theory, and labour market theory — as well as Paper 3 with its quantitative component. HL students also have a longer Paper 1. However, the IA is worth less (20% vs 30%), which means the written papers carry more weight. Most strong Economics students find HL manageable with proper support.

Explore Related Courses

Continue your journey or explore complementary subjects.

Ready to Excel in IB Economics?

Book your free Diagnostic Test and discover how we can help you succeed in IB Economics.

Free Diagnostic Test
Expert tutors, proven results

Book a Free Diagnostic Test View All Economics