Understanding IB Economics Paper 1

How Is IB Economics Paper 1 Structured?

Many students find their IB economics Paper 1 to be a significant challenge. For SL and HL students, the Paper 1 of IB economics is weighted slightly differently, with it accounting for 30% of an SL learner’s final grade, and 20% for those taking HL (HL students are required to sit an additional third exam paper). However, the IB economics Paper 1 follows the same structure for both streams, with all candidates having 1 hour and 15 minutes to complete it. For the Paper 1 exam, IB economics students are required to select one question (worth 25 marks) from a selection of three essay prompts. Each question is divided into two parts: part (a), worth 10 marks, requires candidates to explain an economic concept; and part (b), worth 15 marks, tasks them with discussing or evaluating this given concept by incorporating real-world examples. Consequently, the IB economics Paper 1 not only requires memorisation of economic concepts, but strong analytical and application skills. 

What Content Do You Need to Know for IB Economics Paper 1?

In IB economics, Paper 1’s extended response questions are based on all units of the syllabus. For both SL and HL candidates, the IB economics syllabus is divided into four components: an introduction to economics, microeconomics, macroeconomics, and the global economy. To succeed in Paper 1, those taking IB economics require a strong grasp of these economic theories; in particular, a mastery of the core concepts of supply and demand, economic growth, government intervention tools, market structures, and market failures. 

Furthermore, IB learners must also possess a comprehensive understanding of real-world examples and case studies to which their theoretical knowledge can be applied, using accurate and fully labelled diagrams to demonstrate their understanding. Not only does IB economics Paper 1 cover all units of the syllabus, it also assesses all four of the course’s assessment objectives (AOs): AO1 (Knowledge and Understanding), AO2 (Application and Analysis), AO3 (Synthesis and Evaluation), and AO4 (Use and Application of Skills). As a result, IB economics students must not only be able to recite memorised facts, but refine their ability to apply theoretical concepts to real-word situations, draw and interpret diagrams, analyse data, and provide balanced and reasoned judgements based on their preceding analysis.

Common IB Economics Paper 1 Mistakes and Pitfalls

There are several common pitfalls and mistakes that those studying IB economics routinely make on their Paper 1 exams. Perhaps the most common is a reliance on insufficient or superficial analysis. This can involve simply listing points, stating facts, or briefly summarizing economic concepts. Instead, students are required to demonstrate a deeper understanding of how these principles work in practice: analysing their strengths, weaknesses, and potential implications. Another common pitfall for candidates sitting the IB economics Paper 1 is the poor use of diagrams and the omission of real-world examples. 

Students are assessed on their ability to construct and explain relevant, accurate, and correctly labelled diagrams. Thus, marks will be lost on Criterion A if diagrams are incorrect or poorly explained. Similarly, candidates also make the mistake of either failing to incorporate, or using generic and outdated, real-world examples. The inclusion of real-world examples that are directly related to their chosen Paper 1 question, will allow IB economics students to effectively demonstrate their knowledge and understanding of economic concepts. Overall, those sitting the IB economics exam must ensure that their Paper 1 responses are detailed, explained, and supported with sufficient and relevant evidence.

Tips and Strategies for Studying for IB Economics Paper 1

Many IB economics students have a strong grasp of the subject’s fundamental content and theories. However, through poorly structured Paper 1 essay’s, they fail to achieve high marks. In the exam, IB learners are required to select one of three questions and write an explanation and evaluation of this chosen economic concept. Therefore, it is essential that students are able to write well-structured and detailed essays under the pressure of exam conditions. Many students lack the ability to produce a clear and concise argument and fail to support their work with relevant real-world examples and appropriate economic diagrams. To avoid this common pitfall, candidates are encouraged to utilise the DEED method. 

DEED is a four-step writing framework that provides a clear and logical approach for IB economics Paper 1 responses. It is organised into four steps:

  • Definitions – Providing a clear and concise definition for the essay question’s terms. 

  • Examples – Incorporating real-world examples or hypothetical situations that illustrate these economical terms or processes.

  • Explanations – Elaborating on the chosen economic concepts by details their theory and interconnection answer, as well as by linking back to the question. 

  • Diagrams – Introducing relevant and appropriate diagrams, along with a detailed explanation for how they visually represent the chosen economic theory.   

The DEED framework is a useful strategy as it ensures economics students include all the necessary information in their Paper 1 responses. By organising their thoughts in a logical and systematic format, candidates are more likely to meet the requirements of the IB economics mark scheme and achieve high marks. 

Example of Strong IB Economics Paper 1 Response

Below is an excerpt of an introduction to a 15 mark evaluation-style question from a 2013 IB Economics Paper 1 (note that the diagram has been omitted). 

Using real-world examples, discuss the view that high inflation is a more significant problem than high unemployment.

High inflation refers to the rapid increase in the price of goods, which quickly erodes the real value of a local currency. High inflation typically involves a higher cost of living, the erosion of savings, a decreased purchasing power, and economic uncertainty. These consequences can be illustrated in an aggregate demand/aggregate supply (AD/AS) diagram, such as the one below. The diagram shows how an outward shift in AD (demand-pull inflation) or an inward shift in AS (cost-push inflation) both demonstrate a rise in the price level. High unemployment is generally considered to be when 5-6% of the population cannot find work. This results in economic costs such as a smaller budget surplus, a more unequal distribution of income, and the cost of government intervention in dealing with the social problems caused by unemployment. The assessment of whether high inflation is a more significant problem than high unemployment involves weighing their differing impacts on well-being, economic stability, and growth. For this assessment, one must consider various contexts, including the magnitude and duration of each issue. The UK economy’s unprecedented level of inflation (5-7%) that began to take hold in late 2021 is a useful real world example for how high inflation severely affected a country’s standard of living.  

This is a strong introduction to a Paper 1 evaluation response as it includes a definition of key terms, a diagram to illustrate these points, and a relevant real-world example. Incorporating a clear structure, precise terminology, accurate diagrams, and a detailed analysis of economic consequences is essential for any Paper 1 evaluation.

Example of a Weak IB Economics Paper 1 Response

Below is an example of a weak opening to a Paper 1 evaluation response, answering the same question. 

Using real-world examples, discuss the view that high inflation is a more significant problem than high unemployment.

High unemployment is generally considered a more significant problem than high inflation. This is due to the extreme hardships it brings on individuals. On the other hand, inflation primarily involves a redistribution of purchasing power. In this essay, I will assess how studies on well-being show that unemployment leads to much greater unhappiness and fear, impacting not just those unemployed but also their families and communities.


This is a weak response as there is no definition of the key terms of ‘high inflation’ and ‘high unemployment’. When discussing the consequences of both, this student has also resorted to vague and general descriptions, rather than a more focused incorporation of subject terminology. Furthermore, there is no introduction of relevant diagrams or real-world examples, nor any form of nuance or balanced analysis. Instead, the student has relied on unsupported assertions with no acknowledgement of counter arguments or limitations. In doing so, they have not addressed the questions command term of ‘discuss’. 

How a BartyED Economics Tutor Can Help

BartyED’s IB economics tutors have supported innumerable students through economics Paper 1 preparation. Our expert tutors prioritise both a personalised and holistic approach. This involves tailored lesson plans that address any areas of concern for students and target their specific weaknesses. BartyED tutors will also ensure a comprehensive coverage of the IB curriculum, from simplifying and explaining complex theories to breaking down high-scoring essay structures. 

Whatever a student’s needs may be, BartyED tutors are committed to providing dedicated, one-to-one support. If you think that you or your child could benefit from a BartyED IB Economics tutor, contact us today by phone (+852 2882 1017), email (enquiries@bartyed.com), or through our contact form.

Frequently Asked Questions

  • The paper is worth 30% for Standard Level students and 20% for those at Higher Level.

  • Both levels have 1 hour and 15 minutes to complete the IB economics Paper 1 exam.

  • Yes, students who are aiming for a highly marked paper should be sure to include diagrams in their responses.

  • Yes, the inclusion of real-world examples is essential to a high scoring answer.

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Economics, IB DiplomaMark Malone