IB Economics HL Internal Assessment Example

The student includes diagrams that are clearly relevant to the market failure in the article.

The student attempts to connect the diagram(s) to welfare loss and policy intervention, which shows appropriate economic intent.

The diagrams contain substantive labelling and structural inaccuracies that prevent them from being fully correct.

The explanation of the second diagram does not model a production cap accurately and instead resembles a tax-style shift in costs.

The student uses a good range of relevant economic terms such as market failure, external costs, welfare loss, allocative efficiency, internalization, and production caps.

The commentary is clearly grounded in economics rather than general opinion.

Several terms are used imprecisely, especially when distinguishing external cost from deadweight welfare loss.

Some policy terminology is applied as if a cap automatically generates revenue or increases costs, which is not accurate.