RevisionDojoWhat is IB Economics?
IB Economics is a dynamic and thought-provoking Group 3 subject in the International Baccalaureate Diploma Programme. It equips students with a thorough understanding of fundamental economic concepts, theoretical models, and real-world applications. The course is offered at both Standard Level (SL) and Higher Level (HL), with HL students diving deeper into analysis and quantitative methods.
Course Structure
The IB Economics curriculum is structured into four major units:
- Microeconomics
- Covers consumer behavior, market supply and demand, elasticity, types of market structures such as perfect competition and monopolies, and causes and solutions to market failure.
- Macroeconomics
- Focuses on national economic performance including GDP, inflation, unemployment, and the use of fiscal and monetary policy to stabilize the economy and foster growth.
- The Global Economy
- Explores international trade, protectionism, exchange rates, and the balance of payments. It also examines global trade organizations and the implications of economic integration.
- Development Economics
- Investigates issues related to economic growth and development in less economically developed countries, along with strategies for sustainable progress and improvement in quality of life.
Key Concepts
The syllabus emphasizes nine key economic concepts that are integrated into all areas of study:
- Scarcity
- Choice
- Efficiency
- Equity
- Economic well-being
- Sustainability
- Change
- Interdependence
- Intervention
These concepts provide a lens through which students critically examine both theoretical content and real-world situations.
Assessment Structure
For Standard Level (SL) students:
- Paper 1: Extended response questions that assess theoretical understanding across all units. Duration: 1 hour and 15 minutes.
- Paper 2: Data response questions that involve analyzing stimulus materials. Duration: 1 hour and 30 minutes.
- Internal Assessment (IA): A portfolio of three economic commentaries based on real-world news articles, submitted throughout the course.
For Higher Level (HL) students:
- Paper 1: Same format as SL. Duration: 1 hour and 15 minutes.
- Paper 2: Same format but slightly longer. Duration: 1 hour and 45 minutes.
- Paper 3: Focuses on quantitative methods and real-world analysis. Duration: 1 hour.
- Internal Assessment (IA): Same as SL—three analytical commentaries.
Recent Updates to the 2025 Curriculum
- Greater emphasis on applying economic theory to current global issues.
- The Internal Assessment now explicitly requires commentary on three different economic concepts, each based on a recent news article.
- Enhanced focus on critical thinking, synthesis, and evaluation of economic data and policies.
- Paper 3 for HL students includes more advanced mathematical and graphical techniques.
Skills You Will Develop
- Applying economic theories to real-world scenarios
- Evaluating government policies and economic outcomes
- Interpreting and analyzing graphical and numerical data
- Building structured, evidence-based arguments
- Enhancing global awareness and problem-solving abilities
Relevance for University and Career
Studying IB Economics prepares students for a wide range of university courses and professional careers including:
- Economics
- Business Management
- Finance
- International Relations
- Public Policy
- Political Science
- Data Analysis
- Entrepreneurship
Its rigorous analytical foundation and practical orientation make it valuable across disciplines.
Get the Edge with RevisionDojo
If you’re aiming for a 7 in IB Economics, RevisionDojo offers the ultimate support:
- In-depth topic summaries for each unit
- Guided analysis for all IA components
- Model commentaries and real-world article suggestions
- Practice quizzes and exam-style questions
- HL-specific support for Paper 3 math-based questions
Visit RevisionDojo to boost your understanding and maximize your grades with expert resources tailored to the latest IB Economics syllabus.
