Models, diagrams, and causation
Select the correct model, label and shift it accurately, then explain the causal chain from the initial change to price, output, welfare, distribution, or development outcomes.
IB Humanities • HL
IB Economics HL
Use this IB Economics HL study guide to browse the syllabus topic structure, study materials, and practice resources.
Structured practice
IB Economics HL Question Bank
Jump straight into grouped unit practice without losing your place in the syllabus overview.
1. Introduction to Economics
1.1 What is economics?
1.2 How do economists approach the world?
2. Microeconomics
2.1 Demand
2.2 Supply
2.3 Competitive Market Equilibrium
2.3.1 Demand and supply curves forming a market equilibrium
2.3.2 Shifting demand and supply curves to produce a new market equilibrium
2.3.3 Functions of the price mechanism
2.3.4 Consumer and producer surplus
2.3.5 Social/community surplus
2.3.6 Allocative efficiency at the competitive market equilibrium
2.4 Critique of the maximizing behaviour of consumers and producers (HL only)
2.5 Elasticities of demand
2.6 Elasticity of supply
2.7 Role of government in microeconomics
2.8 Market failure - externalities, common pool resources, public goods, asymmetric information
2.9 Market failure - public goods
2.10 Market Failure - asymmetric information (HL only)
2.11 Market failure - market power (HL only)
2.11.1. Perfect competition
2.11.2. Monopoly - single or dominant firm, high barriers to entry, no close substitutes
2.11.3. Imperfect competition
2.11.4. Rational producer behaviour
2.11.5. Degrees of market power
2.11.6. Monopoly
2.11.7. Oligopoly
2.11.8. Monopolistic competition
2.11.9. Advantages of large firms having significant market power
2.11.10. Risks in markets dominated by one or a few very large firms
2.11.11. Government intervention in response to abuse of significant market power
2.12 The market's inability to achieve equity (HL only)
3. Macroeconomics
3.1 Measuring economic activities
3.1.1. National income accounting as a measure of economic activity
3.1.2. Income, output and expenditure approaches to national income accounting
3.1.3. Nominal GDP as a measure of national output
3.1.4 Nominal GNI as a measure of national output
3.1.5 Real GDP and GNI
3.1.6 Real GDP/GNI per person (per capita)
3.1.7 Business cycle
3.1.8 Appropriateness of using GDP or GNI statistics
3.1.9 Alternative measures of well-being
3.2 Variations in economic activity - aggregate demand and aggregate supply
3.2.1. Aggregate demand (AD)
3.2.2. Components of AD (consumption)
3.2.3. Determinants of AD components
3.2.4. Shifts of the AD curve caused by changes in determinants
3.2.5. Short-run aggregate supply (SRAS) curve
3.2.6. Shifts of the SRAS curve
3.2.7. Alternative views of aggregate supply (AS)
3.2.8 Shifts of the AS curve over the long-run
3.2.9 Macroeconomic equilibrium
3.2.10 Assumptions and implications of the monetarist/new classical and Keynesian models
3.3 Macroeconomic objectives
3.3.1 Economic growth
3.3.2. Consequences of economic growth
3.3.3. Low unemployment
3.3.4. Low and stable rate of inflation
3.3.5. Relative costs of unemployment versus inflation
3.3.6. Sustainable level of government (national) debt (HL only)
3.3.8. Potential conflict between macroeconomic objectives
3.3.9. High economic growth
3.4 Economics of inequality and poverty
3.4.1. Relationship between equality and equity
3.4.2. The meaning of economic inequality
3.4.3. Measuring economic inequality
3.4.4. Meaning of poverty
3.4.5 Measuring poverty
3.4.6 Difficulties in measuring poverty
3.4.7 Causes of economic inequality and poverty
3.4.8 Impact of income and wealth inequality
3.4.9 Role of taxation in reducing poverty, income and wealth inequalities
3.4.10 Further policies to reduce poverty, income and wealth inequality
3.5 Demand management - Monetary policy
3.5.1. Monetary policy
3.5.2. Goals of monetary policy
3.5.3. The process of money creation by commercial banks (HL only)
3.5.4. Tools of monetary policy (HL only)
3.5.5. Demand and supply of money (HL only)
3.5.6. Real versus nominal interest rates
3.5.7. Expansionary and contractionary monetary policies to close deflationary/recessionary and inflationary gaps
3.5.8 Effectiveness of monetary policy
3.6 Demand management - fiscal policy
4. The Global Economy
4.1 Benefits of International Trade
4.2 Types of Trade Protection
4.3 Arguments For and Against Trade Protection
4.4 Economic Integration
4.5 Exchange Rates
4.6 Balance of Payments
4.6.1 Balance of payments
4.6.2 Components of the balance of payments
4.6.3 Interdependence between the accounts
4.6.4 Relationship between the current account and the exchange rate (HL)
4.6.5 Relationship between the financial account and the exchange rate (HL only)
4.6.6 Implications of a persistent current account deficit (HL only)
4.6.7 Methods to correct a persistent current account deficit (HL only)
4.6.8 The Marshall-Lerner condition and the J-curve effect (HL only)
4.6.9 Implications of a persistent current account surplus in terms of (HL only)
4.7 Sustainable Development
4.8 Measuring Development
4.9 Barriers to Economic Growth and Economic Development
4.10 Economic Growth and Economic Development Strategies
4.10.1 Strategies to Promote Economic Growth and Economic Development
4.10.2 Strengths and Limitations of Strategies for Promoting Economic Growth and Economic Development
4.10.3 Strengths and Limitations of Government Intervention Versus Market-Oriented Approaches to Achieving Economic Growth and Economic Development
4.10.4 Meeting the Sustainable Development Goals
Overview
Course overview
How to study IB Economics HL
IB Economics HL, in its current form first assessed in 2022, uses theories, models, concepts, and empirical evidence to examine choices under scarcity in markets, national economies, and the global economy. The course connects introduction to economics, microeconomics, macroeconomics, and the global economy through nine key concepts: scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, and intervention. HL adds syllabus depth, quantitative techniques, and a policy Paper 3 requiring evidence-based recommendations. The StudyIB catalogue below follows these four current units and identifies HL-only material where applicable.
Real-world evidence and data
Use current, specific evidence to test economic theory and interpret data, calculations, trends, and limitations before making a conclusion.
Concept-led evaluation
Evaluate policies through assumptions, stakeholders, elasticity, time, equity, sustainability, and unintended effects, then justify feasible recommendations from the supplied evidence.
Assessment at a glance
IB Economics HL, first assessed in 2022, combines written external assessment with a portfolio of three news-based commentaries. HL also takes a data- and policy-focused Paper 3.
| Component | Format | Weighting |
|---|---|---|
| Paper 1 | 1 hour 15 minutes; extended-response questions based on all four syllabus units | 20% |
| Paper 2 | 1 hour 45 minutes; data-response questions based on all four syllabus units | 30% |
| Paper 3 | 1 hour 45 minutes; policy paper using supplied data and knowledge from all syllabus units | 30% |
| Internal assessment | 20 hours; portfolio of three commentaries using different units, news extracts, and key concepts | 20% |
Sources: official IB Economics HL subject brief (first assessment 2022) and official IB Economics course page.
Revision plan
- 1.Organise each syllabus subtopic around definitions, assumptions, a labelled diagram, a causal chain, a real-world example, and likely evaluation conditions.
- 2.Build connections across the nine key concepts instead of treating them as a separate vocabulary list.
- 3.Practise Paper 1 arguments and Paper 2 data responses under time, keeping diagrams and evidence integrated into the explanation.
- 4.Add Paper 3 practice that combines quantitative work, data interpretation, policy trade-offs, and a clearly justified recommendation.
Exam strategy
Let the command term determine the depth. Define the relevant concept, draw only a useful diagram, explain every movement or relationship, and apply specific real-world evidence. Evaluation should be developed through the response and should identify the conditions under which a conclusion holds. In Paper 3, show quantitative working, use the supplied data, compare policy options, and make a recommendation that addresses objectives, constraints, stakeholders, and likely side effects.
Practise IB Economics HL questionsFrequently asked questions
What topics are covered in IB Economics HL?
IB Economics HL is organised into four units: introduction to economics, microeconomics, macroeconomics, and the global economy. HL studies additional microeconomic content and develops more advanced quantitative and policy-analysis skills.
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 should be used to analyse and evaluate real-world issues rather than added as isolated definitions.
How is IB Economics HL assessed?
HL Paper 1 lasts one hour 15 minutes and contributes 20%; Paper 2 lasts one hour 45 minutes and contributes 30%; Paper 3 lasts one hour 45 minutes and contributes 30%; the internal-assessment portfolio contributes 20%.
What is the IB Economics internal assessment?
Both SL and HL students submit a portfolio of three commentaries based on published news-media extracts. The commentaries must come from different syllabus units other than the introductory unit and use different key concepts as analytical lenses. Confirm article dates, word limits, citations, and school deadlines with the current guide and your teacher.
What is the difference between IB Economics HL and SL exams?
HL takes the shared extended-response Paper 1 and data-response Paper 2 plus Paper 3, a policy paper using supplied data and economic knowledge to make and justify recommendations. HL also includes additional syllabus depth and quantitative techniques.