The Ultimate Guide to Writing an IB Economics Essay (Paper 1 SL/HL)

The International Baccalaureate (IB) Economics syllabus requires a very specific approach that is entirely different from standard high school tests. If you do not understand the strict IB assessment criteria—specifically the mandatory use of Real-World Examples (RWEs)—you will struggle to break past a Grade 5.

Here is The Economics Tutor’s step-by-step guide to dominating your IB Economics essays. Using these exact frameworks, over 90% of our IB Economics Tuition students consistently secure a Grade 7.

(Note: Are you a Singapore JC student? Check out our dedicated Guide to Writing an A-Level Economics Essay instead!)

The IB Paper 1 Landscape

Paper 1 tests your ability to apply microeconomic, macroeconomic, and global economic theories. You have 1 hour and 15 minutes to answer one chosen question, split into two parts:

• Part A (10 marks – 25 mins): Purely explanatory. You must explain an economic concept using diagrams. Real-world examples are not compulsory here. Hypothetical examples can help better convey your explanations.
• Part B (15 marks – 50 mins): Evaluative. You must discuss, synthesize, and evaluate an economic issue, heavily supported by real-world examples.

7 Steps to Writing a Grade 7 IB Economics Essay

Here are the 7 Steps to acing your IB Paper 1 Essay Exam:

Step 1: DISSECT the IB Command Terms

The IB grading rubric is notoriously rigid regarding command terms.

For more info, please refer to IB Economics Command Terms.

Step 2: Mandatory Real-World Examples (RWEs)

In the current IB syllabus, Real-World Examples are mandatory. You cannot reach the top mark band (13-15 marks for Part B) without them. During your 5-minute planning phase, identify the specific global examples you will weave into your essay (e.g., the US IRA subsidies, Japan’s negative interest rates, or the EU carbon emissions trading scheme).

Step 3: The Introduction

Do not waste time with fluff. Your introduction needs three things:

1. Define the key terms.
2. State the economic model you will use.

Step 4: The Body Paragraphs (PEEL(ED)™ Framework)

For Part A (10m), write 2-3 detailed body paragraphs, usually accompanied by at least 1 diagram.

For Part B (15m), write 5-6 body paragraphs covering different perspectives, accompanied by at least 2 diagrams.

Use our prioprietary PEEL(ED)™ structure to ensure economic rigour. For each body paragraph, use TET’s PEEL(ED)™ structure. Include only one main idea per paragraph.

Point – Write your point in the first sentence so that markers will know what the paragraph will be about. The topic sentence must directly answer the question!

Explanation – Explain what you mean. Ensure you have the necessary keywords, key-phrases and economic logic to showcase your knowledge and familiarity with the economic theories. For example, don’t just claim that indirect subsidies will increase supply. Rather, explain this logic: Indirect subsidies -> lower marginal cost of production -> increase profit margin and thus incentive to produce -> Increase Supply of the good.

Elaboration – Provide further analysis with clear step-by-step economic reasoning. This part may be done with examples as well as diagrams. The examples can include hypothetical ones (for Part A) although real life examples are usually best.

Link – Link your explanations back to the Point and to answer the question. This also helps to ensure you are not straying from the question requirements.

Exemplification – For IB economics, weaving in real world examples for part b) essays are a must.

Diagram – Where possible, draw an appropriate diagram with correct labelling and refer to it in your answer. This is crucial to show economic reasoning. Diagrams are very important for economics essays!

Example of a Grade 7 IB Paragraph:

“[Point] A government can correct the market failure of over-consuming demerit goods by imposing an indirect Pigouvian tax. [Explanation] This tax increases the marginal cost of production for firms. As shown in Figure 1, this shifts the Marginal Private Cost (MPC) curve upwards by the amount of the tax to MPC+tax. This forces the firms to internalizes the external cost, and in so doing, increases the equillibrium price ffrom Pm to Popt and reducing consumption from Qm to the socially optimal level (Qopt), thereby eliminating the welfare loss to Society. [Elaboration] For example, in 2018, the UK government introduced a ‘Sugar Tax’ on soft drink manufacturers. By increasing the cost of production, the tax successfully reduced the volume of sugary drinks consumed by the British public, [Link] helping to correct the market failure associated with obesity and related healthcare costs.” [Exemplification (RWE)] inserted above. [Diagram] insert below.

Step 5: Evaluation (The FILTER™ Framework)

Evaluation is the most critical part of a Part B essay. Do not just list pros and cons; use our proprietary FILTER™ framework to structure your high-level evaluation:

• Feasibility – Can the policy really be implemented? Are there assumptions that may not hold?
• Impacts (More details covered in our lessons.)
• Long-term vs. Short-term: (More details covered in our lessons.)
• Timing – Does the policy work immediately (like interest rates) or take years (like supply-side education policies)
• Effectiveness – What factors aid or hinder its effectiveness?
• Root Causes – Are the root causes of the problems addressed?

Step 6: The Conclusion (Synthesis)

Do not offer a mere summary. Instead, deliver a clear, well-reasoned judgment that directly answers the “To what extent” prompt. Here, our proprietary PERFECTMASS™ framework will do the job best. For example, P stands for Priorities, which will entail for example assessing the overall state of the economy to judge if contractionary or expansionary policies should be implemented instead.

Step 7: General Structure for Part B)

1. Intro
2. Thesis Argument #1
3. Thesis Argument #2
4. Anti-Thesis Argument #1 (usually Problems and Limitations of the Main policy)
5. Anti-Thesis Argument #2 (usually Alternative Policy and how it may be superior)
6. Conclusion (Synthesis)

FINAL TIPS

In your essay, write in simple and clear sentences. Everything you write should be value-adding. You do not have to spend time showing off vocabulary as no extra points are awarded for language. Focus on economic reasoning. Use succinct and effective examples which support the point you are trying to make as well as accurate diagrammatic analyses.

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Frequently Asked Questions (FAQs)