How to excel in IB Economics

Economics is a popular subject studied as part of Subject Group 3 of the IB, Individuals and Societies. It is suitable for someone who is either focused on studying Economics or an Economics-related subject at University, or someone who is focused on sciences or maths and seeks to incorporate mathematical skills and concepts as part of their group 3 subjects. It can be studied as a Standard or Higher Level paper, each of which requires differing levels of understanding.

What do I need to know for IB Economics?

The requisite knowledge, substantive and procedural, varies between IB Economics at Standard and Higher Level. Here we provide the knowledge required for both at a glance.

Standard Level (SL)

1. Microeconomics:

  • Market Systems:

    • Understanding supply, demand, and market equilibrium.

    • Concepts of elasticity and its applications.

  • Market Failure:

    • Externalities, public goods, and government intervention.

    • Understanding consumer and producer surplus.

2. Macroeconomics:

  • Macroeconomic Objectives:

    • Inflation, unemployment, economic growth, and their indicators.

    • Fiscal and monetary policy tools.

  • International Economics:

    • Balance of payments, exchange rates, and trade policies.

    • Understanding globalization and its impacts.

3. Development Economics:

  • Development Indicators:

    • Measures of development and economic growth.

    • Poverty, income distribution, and inequality.

  • Development Strategies:

    • Approaches to development, including trade and aid policies.

Higher Level (HL) - Additional Content

1. Microeconomics:

  • Market Structures:

    • Analysis of perfect competition, monopoly, and oligopoly.

    • Game theory and strategic behavior.

  • Market Efficiency:

    • Consumer behavior theories and market structures.

    • Factor markets and labor markets.

2. Macroeconomics:

  • Macroeconomic Models:

    • Multiplier effects, the circular flow of income, and national income determination.

    • Economic indicators and economic policies.

  • Economic Integration:

    • European Union (EU) as a case study in regional integration.

    • Advantages and disadvantages of economic unions.

3. Development Economics:

  • Sustainable Development:

    • Environmental sustainability and global challenges.

    • Policies addressing poverty and sustainable development.

  • Trade and Development:

    • Trade policies, barriers to trade, and their impact on development.

    • Case studies on economic growth and development.

What are the findings from recent Examiners’ Reports?

Examiners’ Reports are a crucial resource when it comes to planning revision. They can help to identify potential misconceptions and pitfalls in both your substantive and procedural understanding of the subject. We provide here a brief sketch of common trends in examiners’ reports from recent years.

Areas of Strength:

  • Clear Understanding of Economic Concepts:

    • Students demonstrate a solid grasp of fundamental economic principles and theories.

    • Clear application of economic concepts to real-world scenarios.

  • Analysis and Evaluation:

    • Strong ability to analyze economic data, graphs, and case studies.

    • Effective evaluation of policies, their impacts, and implications.

  • Use of Relevant Examples:

    • Utilization of appropriate examples and case studies to support arguments and explanations.

Areas for Improvement:

  • Depth of Analysis in Higher Level (HL) Papers:

    • HL candidates are encouraged to provide deeper analysis, especially in more complex economic theories and models.

    • Emphasizing the application of HL content in responses to gain higher marks.

  • Clarity and Structure in Responses:

    • Encouragement to structure responses logically, with clear introductions, coherent arguments, and concise conclusions.

    • Focus on clarity of expression and organization to enhance readability and understanding.

  • Balance in Evaluative Responses:

    • Highlighting the need for balanced evaluations, considering various perspectives and limitations of economic theories or policies.

    • Avoiding one-sided arguments or overlooking the opposing viewpoints.

  • Time Management:

    • Recommendations to manage time effectively during exams, ensuring all questions receive adequate attention.

    • Practicing past papers under timed conditions to improve efficiency.

Our Insights

At Chapkin Edwards we have a number of key insights that will help facilitate your success in IB Economics. 

Understanding key concepts inside-out. This is an absolutely crucial place to start. It is not enough to simply be aware of which topic areas fall under macroeconomics, and which under microeconomics. It is crucial to have a clear definition of these concepts before you embark on any more specific revision tasks. Understanding the field on a broad level will make it much easier to schematise your revision for quick retrieval in the exam.

Use a range of resources, both in learning and revising. Using a range of different resources is crucial not just for the differing learning strategies contained therein, but also for stimulating your interest in the subject. Rather than focusing solely on theoretical knowledge of inflation, put your knowledge into practice by reading about current affairs. The Economist, available as both a print and online paper, as well as a podcast, is a brilliant vehicle for actualising your learning and seeing how economics is far more than just theory: it is a living, morphing entity.

Revision Planning. Ensure you have a clear plan in place for starting your revision early. Start with defining key concepts such as micro and macroeconomics. Add more complexity by creating detailed content summaries for each. As a challenge, find connections between different fields of economics and represent them in your concept maps. For instance, macroeconomics ties into development economics, especially with regard to British public policy and its slacking commitment to global development. Identify other, similar connections to really bolster your understanding.

IB Economics Tutoring at Chapkin Edwards

Chapkin Edwards is a leading provider of expert tuition, homeschooling and school and university admissions support. If your child requires tutoring in Economics or any other subject at IB, please contact us here.

Josh Chapkin