IB Economics Command Terms Guide: AO1 to AO4 Explained

Kelvin HongIB Economics, Exam Skills & Techniques

In the International Baccalaureate (IB) Economics syllabus, command words are not just suggestions—they are strictly categorized into four Assessment Objectives (AOs). Treating an AO2 command term like an AO3 command term is the fastest way to cap your Paper 1 essay at a Level 5.

To secure a Grade 7, you must dissect the prompt exactly as the IBO intends. Here is definitive, comprehensive guide to IB Economics Command Terms that all students of our IB Economics Tuition programme will be guided to master.

AO1: Knowledge and Understanding (The Basics)

These terms require you to demonstrate fundamental knowledge. They appear frequently in Paper 2 data response questions.

  • Define: Give the precise meaning of a word, phrase, or concept. (No need for examples or diagrams here—just the exact definition.)
  • Describe: Give a detailed account of a pattern or trend.
  • State: Give a specific name, value, or other brief answer without explanation.

AO2: Application and Analysis (Paper 1 part A, Paper 3)

These terms require you to use economic theories and apply them to Real-World Examples (RWEs).

  • Explain: Give a detailed account including reasons or causes. (Crucial for your 10-mark Paper 1 Part A essay. Use a diagram and a hypothetical example to show exactly how a theory works.)
  • Distinguish: Make clear the differences between two or more concepts.
  • Calculate: Obtain a numerical answer and show your working.

AO3: Synthesis and Evaluation (Paper 1 Part B & Paper 2)

This is the highest level of cognitive demand. These terms carry the bulk of your marks in Part B (15 marks) and require our proprietary CLASPP evaluation framework.

Command TermOfficial IB DefinitionHow to Execute It
DiscussOffer a considered and balanced review of a range of arguments.Look at multiple angles. Support your opinions with evidence and Real-World Examples. Ensure you cover both pros and cons.
EvaluateMake an appraisal by weighing up strengths and limitations.Explicitly state the theoretical benefits of a policy, followed by its real-world limitations (e.g., ceteris paribus assumptions, time lags).
To what extentConsider the merits or otherwise of an argument.Make a definitive, justified judgment in your conclusion. State clearly how much you agree with the premise based on your preceding evidence.

AO4: Use and Application of Appropriate Skills

These terms dictate how you use your mathematical and diagrammatic tools.

  • Draw: Represent by means of a labelled, accurate diagram or graph, using a pencil.
  • Derive: Manipulate a mathematical relationship to give a new equation.

Your Next Step to a Grade 7

Now that you know what the IB examiners are asking for, it is time to build your essay.

👉 Read our Master Guide on How to Write an IB Economics Essay to learn how to integrate Real-World Examples (RWEs) and use the CLASPP framework to dominate your AO3 questions.

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For over 26 years, our specialized JC Economics Tuition (A-Level) program (with dedicated H1 and H2 Economics Tuition classes) has helped students secure As by focusing on critical thinking and our proprietary “Mental Gym” methodology. We take a similar practitioner-led approach in our IB Economics Tuition program, offering additional support for the Internal Assessments (IA) and Extended Essay (EE). 

With deep familiarity of both the A-Level and IB Economics syllabus, our curriculum helps students master concepts as well as Exam techniques, avoid common pitfalls and maximise their exam scores. With a track record of 80-90% Distinctions yearly, our students progress to secure their desired tertiary choices in prestigious universities. As a Serial Entrepreneur, Kelvin goes beyond grades to nurture the investment acumen and business decision-making skills you need for life. See our Student Testimonials or explore our learning resources, including our Study Guides and Model Essays (highly sought after by teachers and schools worldwide) as well as our high-yield Concept Videos.

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