IB Econ SL
Target Question:
What is IB Economics SL and what does the course cover?
Your complete guide to IB Economics SL - what the course covers, how it's assessed, exam technique for Papers 1 and 2, Internal Assessment guidance, and past paper reviews.
Full IB Economics SL activity practice breakdown, exam practice, model answers and evaluation tools are available exclusively in the IB Economics Activity Book and IB Economics Calculations book.
What Is IB Economics SL?
IB Economics Standard Level is one of the most popular Group 3 (Individuals and Societies) subjects in the IB Diploma. It covers economic theory and its real-world applications across four modules - Introduction to Economics, Microeconomics, Macroeconomics, and The Global Economy - developing analytical, evaluative, critical thinking and quantitative skills that can be used beyond the IB Economics programme.
SL students study for approximately 150 teaching hours over two years. The course is assessed through two external examinations (Papers 1 and 2) and an internal portfolio of three commentaries, with no paper 3 - that is HL-only.
IB Economics SL definition:
IB Economics Standard Level covers the core content of the IB Economics syllabus - microeconomics, macroeconomics, and international economics - assessed through extended response essays (Paper 1) and data response questions (Paper 2), with an Internal Assessment commentary portfolio. It develops economic literacy, analytical thinking, and policy evaluation skills suitable for university study in economics, business, politics, and related fields.
The Four Modules
Module 1 - Introduction to Economics
The introductory unit establishing the basic economic problem, methodology, and conceptual framework. All subsequent analysis builds on these foundations.
Core concepts: scarcity and the economic problem; opportunity cost; the factors of production; economic systems (market, command, mixed); positive vs normative economics; the nine key concepts (scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, intervention).
The nine key concepts are a distinctive feature of the IB Economics course - they are the analytical lenses through which all economic issues are examined and must appear explicitly in Internal Assessment commentaries.
Module 1: Introduction to economics
Module 2 - Microeconomics
The study of individual markets - how prices are determined, how they allocate resources, when they fail, and how governments respond.
Core content: demand and supply theory; market equilibrium; elasticity (PED, YED, XED, PES) and its applications; market failure (externalities, public goods, common pool resources, asymmetric information); and government intervention (indirect taxes, subsidies, price controls, regulation).
This unit provides the analytical toolkit that supports everything else - a student who masters supply and demand, elasticity, and welfare analysis has the foundations for the entire course.
2.1 Demand
2.2 Supply
2.4 Critique of the maximising behaviour of consumers and producers
2.8 Market failure - externalities and common pool or common access resources
IB Economics Market Failure - Full Guide →
IB Economics Elasticity - Full Guide →
IB Economics Government Intervention - Full Guide →
Module 3 - Macroeconomics
The study of the whole economy - measuring output, understanding fluctuations, and evaluating government policy.
Core content: measuring economic activity (GDP, national income); the business cycle and output gaps; aggregate demand and aggregate supply (AD/AS model); unemployment (types, causes, consequences); inflation (demand-pull, cost-push, measurement, consequences); fiscal policy; monetary policy; and the relationship between policy objectives.
The AD/AS model is the central diagram of macroeconomics - it connects all the major macroeconomic variables and policy tools in a single framework. Students who understand how shifts in AD and AS affect the price level, output, and employment can answer the majority of macroeconomics questions.
3.1 Measuring economic activity and illustrating its variations
3.2 Variations in economic activity - aggregate demand and aggregate supply
3.4 Economics of inequality and poverty
3.5 Demand management (demand-side policies) - monetary policy
3.6 Demand management - fiscal policy
IB Economics Fiscal Policy - Full Guide →
IB Economics Monetary Policy - Full Guide →
IB Economics Unemployment - Full Guide →
IB Economics Inflation - Full Guide →
Module 4 - The Global Economy
International economics - trade theory, trade policy, exchange rates, and economic development.
Core content: absolute and comparative advantage; gains from trade; free trade vs protectionism (tariffs, quotas, subsidies); exchange rate systems (floating, fixed, managed float); the balance of payments; economic integration (FTAs, customs unions, common markets); and development economics (measuring development, poverty, inequality, development strategies).
This unit has the highest data response appearance in Paper 2 - students must be comfortable interpreting trade statistics, exchange rate data, balance of payments accounts, and development indicators.
4.5 Exchange rates
IB Economics International Trade - Full Guide →
IB Economics Exchange Rates - Full Guide →
IB Economics Poverty - Full Guide →
IB Economics Inequality - Full Guide →
Assessment Structure
Paper 1 - Extended Response (30% of final grade)
Duration: 1 hour 15 minutes
Format: two sections. Section A usually draws from microeconomics; Section B usually draws from macroeconomics or from The Global Economy. Students answer one question from each section. Each question has two parts:
Part (a) - 10 marks: explanation with diagram (typically "explain," "analyse," or "examine")
Part (b) - 15 marks: evaluation (typically "evaluate," "discuss," or "to what extent")
What Paper 1 rewards: clear definitions, accurate and labelled diagrams, specific real-world examples, and genuine evaluation in part (b). A 15-mark response that only describes without evaluating cannot score above the middle band.
Paper 2 - Data Response (40% of final grade)
Duration: 1 hour 45 minutes
Format: four questions based on stimulus material (texts, data, graphs) drawn from all four units. Students answer three of the four questions. Each question has multiple parts ranging from 2 to 8 marks.
What Paper 2 rewards: accurate reading and interpretation of data, correct application of theory to the specific context provided in the stimulus, and precise calculations where required. The data in the stimulus always matters - responses that ignore it score poorly.
Internal Assessment - Commentary Portfolio (30% of final grade)
Format: three commentaries, each based on a published news article (maximum 800 words each). Each commentary must:
Address a different unit of the syllabus
Apply different economic concepts
Reference at least one of the nine key concepts
Demonstrate original analysis rather than simply describing the article
The IA rewards specificity - a commentary that applies one concept precisely and evaluates it thoroughly outperforms one that mentions many concepts superficially.
Exam Technique: Paper 1
The most reliable structure for Paper 1 responses is built around four elements:
Define - define the key economic term in the question precisely and concisely. A clear definition signals understanding immediately and frames the rest of the response.
Diagram - draw relevant diagrams accurately, fully labelled and applied to the economic context. In IB Economics, a diagram without labels earns minimal credit. Every axis, curve, equilibrium point, and shift must be identified.
Explain - use the diagram to explain the economic mechanism. The diagram should be integrated into the text - not drawn separately with no connection to the argument.
Evaluate - for part (b), go beyond description. Evaluation means: acknowledging limitations of the analysis, considering alternative perspectives, weighing costs against benefits, and reaching a supported conclusion. Generic phrases ("it depends on the context") score poorly; specific evaluative points indicating critical thinking score well.
Common mistakes in Paper 1:
Defining terms incorrectly or not at all
Drawing diagrams with missing labels - axis titles, curve labels, equilibrium points
Writing only description in part (b) without genuine evaluation
Using no real-world examples, or using examples with no connection to the theory
Running out of time on part (b) because part (a) was overwritten
Exam Technique: Paper 2
Paper 2 requires different skills from Paper 1 - the stimulus/reference material presented in the exam is central and must be used.
Read the data carefully - Paper 2 questions are written specifically about the data provided. An answer that ignores the stimulus and writes general theory scores poorly regardless of how accurate the theory is.
Answer what is asked - command words are enormously relevant. "Identify" requires a single point; "explain" requires a mechanism; "evaluate" requires balanced analysis and a conclusion. Writing an essay for a 2-mark identify question wastes time.
Show calculation working - for numerical questions, always show the formula, substitution, and answer. Even if the final answer is wrong, method marks are available. An answer with no working cannot earn method marks.
Select questions wisely - students answer three of four questions. Spend 60 seconds reading all four before committing. Choose the questions where you can most confidently address all parts, not just the opening sub-questions.
Past Paper Reviews
The IB Trainer analyses for students IB Economics SL past papers session by session - breaking down what was asked, command word analysis, mark scheme insights, and how to approach and answer similar questions.
Lawrence's IB Economics SL Paper 1 Reviews
Lawrence's IB Economics Paper 2 Reviews
IB Economics SL Resources
IB Economics Diagrams Course
Every diagram in the IB Economics SL syllabus - fully labelled, with video support and exam application guidance for Paper 1 and Paper 2.
✔ All SL diagrams covered
✔ Video support for every diagram
✔ Real exam application examples
IB Economics Activity Book
Comprehensive practice across all four units with IB standard model answers and IB marking schemes, covering all Assessment Objectives (AO1–AO4).
Frequently Asked Questions - IB Economics SL
What does IB Economics SL cover? IB Economics SL covers four modules: Introduction to Economics (scarcity, economic systems, the nine key concepts); Microeconomics (supply and demand, elasticity, market failure, government intervention); Macroeconomics (GDP, business cycle, unemployment, inflation, fiscal and monetary policy); and The Global Economy (comparative advantage, trade policy, exchange rates, balance of payments, development economics). The course is assessed through Paper 1 (extended essays), Paper 2 (data response), and an Internal Assessment commentary portfolio.
What is the difference between IB Economics SL and HL? Both cover the same four modules, but HL includes additional content in each unit - price discrimination theory, game theory, the Phillips Curve, Heckscher-Ohlin trade theory, and additional analysis and calculations. HL also sits Paper 3 (a policy analysis paper weighted at 30% of the HL grade) and requires more extensive quantitative skills. SL students sit only Papers 1 and 2. HL is recommended for students planning to study economics at undergraduate level.
How is IB Economics SL graded? Paper 1 is worth 40% of the final grade; Paper 2 is worth 40%; and the Internal Assessment portfolio is worth 20%. The mean grade for IB Economics SL is approximately 4.7-4.8. Grade 7 typically requires strong performance across all three components - consistent diagram accuracy, genuine evaluation in Paper 1 part (b), and precise data application in Paper 2.
What is the Internal Assessment in IB Economics SL? The IA is a portfolio of three commentaries, each based on a current published news article (maximum 800 words each). Each commentary must address a different syllabus unit and reference at least one of the nine key concepts. The IA rewards specific application of economic theory to the chosen article - a commentary that analyses one concept precisely and evaluates it thoroughly outperforms one that mentions many concepts superficially. The IA is worth 20% of the final grade.
What are the nine key concepts in IB Economics? The nine key concepts are: scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, and intervention. They are the analytical lenses through which all economic issues are examined in the IB course. Each IA commentary must reference at least one key concept explicitly, and strong exam responses often connect their analysis to relevant concepts - for example, linking a discussion of externalities to both efficiency and equity.
This hub is updated regularly to reflect current IB Economics SL syllabus requirements and new past paper sessions.
Explore Topics:
IB Economics Hub Page your IB Economics SL daily guide
IB Economics Diagrams Page Check this resource for All the IB Economics SL syllabus diagrams with explanations
IB Economics Activity book Page More IB Economics SL exam practice, activities, model answers and IB Economics Marking schemes, all units all modules covered
IB Economics Required Diagrams SL HL Page This is a list of the required diagrams for IB Economics SL
IB Economics Calculations SL HL This is a list of the different calculations required for IB Economics SL
IB economics Calculations Book 25 units of calculations exercises for SL and HL, IB model answers, and IB marking schemes
IB Economics Paper 1 Hub Page all the information you need to understand your paper 1 SL exam
IB Economics Paper 2 Hub Page all the information you need to understand your paper 2 exam
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