The IB Economics Paper 1 can be both challenging and rewarding. It tests your ability to apply economic theory, analyze real-world situations, and evaluate policies effectively — all within timed essay-style responses. To achieve top marks, you need more than just memorization; you need clarity, structure, and strong examples. This guide will walk you through how to handle both 10-mark and 15-mark questions in Paper 1 with confidence and precision.
Understanding the Paper Structure
Paper 1 is an essay-based paper that tests your ability to apply economic theory to real-world situations. You are given three questions (one from each section of the syllabus), and you must choose one to answer. Each question is divided into:
- (a) a 10-mark question (usually focused on theory and application)
- (b) a 15-mark question (focused on evaluation and real-world analysis)
Both questions should be written in essay form, with clear structure, diagrams where relevant, and precise use of terminology.
Tackling the 10-Mark Question: Theory and Application
The 10-mark question usually begins with words like “Explain”, “Using a diagram”, or “Analyze”. It focuses on economic theory and its application to a specific context.
Step 1: Define Key Terms
Start your essay with clear and accurate definitions of all key terms in the question. This shows the examiner your conceptual understanding right from the start.
Example:
If the question is “Explain how a subsidy affects market outcomes”, define subsidy and market equilibrium.
Step 2: Use a Relevant and Accurate Diagram
Diagrams are essential in 10-mark questions. Label them fully, indicate shifts clearly, and refer to them in your explanation.
Your explanation should describe:
- The initial equilibrium
- The policy or event and how it shifts supply/demand
- The new equilibrium and resulting effects on price, quantity, and welfare
Step 3: Analyze the Effects
Use linking phrases such as “As a result,”, “This leads to,” or “Therefore,” to show cause-and-effect reasoning. Explain the economic effects, who benefits and who loses, and mention efficiency or equity implications if relevant.
Structure for 10-Mark Questions
- Definition of key terms
- Explanation of theory with a diagram
- Step-by-step analysis of impacts
A 10-mark response should aim for around 1-1.5 pages — concise, analytical, and diagram-driven.
Tackling the 15-Mark Question: Evaluation and Real-World Analysis
The 15-mark question typically begins with words like “Using real world examples, Evaluate,” “Using real world examples, Discuss,” .This question tests your ability to critically assess economic policies or outcomes using real-world examples.
Step 1: Start with Definitions and Theory
Define key terms, then briefly outline the theory or model relevant to the question.
For instance, if the question is “Evaluate the use of price ceilings to increase affordability of goods,” define price ceiling, equity, and market failure before showing the theoretical impact using a diagram.
Step 2: Use Real-World Examples
Unlike the 10-mark question, the 15-mark question requires real-world examples.
Use specific, dated, and contextualized examples:
- Venezuela’s price ceilings on food (2016–2018) led to shortages.
- Rent control in New York affects housing supply and quality.
- Carbon taxes in Sweden reduced emissions by over 25% since 1990.
These examples show you can connect theory to reality — a key IB criterion for the top markband.
Step 3: Use a Relevant and Accurate Diagram
Diagrams are essential in 15-mark questions too!. Label them fully, indicate shifts clearly, and refer to them in your explanation.
Your explanation should describe:
- The initial equilibrium
- The policy or event and how it shifts supply/demand
- The new equilibrium and resulting effects on price, quantity, and welfare
Step 4: Analyze Using economic theory
Use linking phrases such as “As a result,”, “This leads to,” or “Therefore,” to show cause-and-effect reasoning. Explain the effects, who benefits and who loses, and mention efficiency or equity implications if relevant.
Step 5: Evaluate from Multiple Perspectives
This is the most important part. Go beyond describing outcomes — weigh pros and cons:
- Short-run vs long-run effects
- Stakeholders: consumers, producers, government, and society
- Effectiveness vs unintended consequences
- Alternative policies (e.g., subsidies, information campaigns)
Use transition phrases such as:
- “However, in the long run…”
- “On the other hand…”
- “This depends on the elasticity of demand…”
- “An alternative approach could be…”
Step 6: End with a Balanced Conclusion
Conclude with a clear judgment — not just a summary.
A strong conclusion will:
- Acknowledge limitations of your analysis
- State the most effective policy under certain conditions
- End with a conditional phrase:
“Therefore, while price ceilings may increase affordability in the short run, their long-term success depends on the elasticity of supply and the government’s ability to manage shortages.”
Structure for 15-Mark Questions
- Define key terms and outline theory
- Apply to real-world examples
- Use clear diagrams
- Analyse using economic theory
- Evaluate multiple perspectives
- Conclude with a balanced judgment
Aim for around 2.5 – 3 pages for this section.
General Tips for Paper 1 Success
✅ Use clear, labeled diagrams — poorly drawn or unreferenced diagrams lose marks.
✅ Integrate theory and examples — don’t separate them; connect theory directly to real-world cases.
✅ Time management — spend about 25 minutes on the 10-marker and 50 minutes on the 15-marker.
✅ Use economic vocabulary — terms like allocative efficiency, externalities, and inequality signal mastery.
✅ Practice regularly — review past IB markschemes to understand what “evaluation” really means.
Final Thoughts
Paper 1 is your chance to show that you can think like an economist — not just recall definitions. Strong answers blend theory, application, and evaluation. Mastering this structure — with precise definitions, accurate diagrams, and real-world insight — is the surest way to secure top marks in your IB Economics exams.
Learning the All Round Way
Master the IB Economics Paper 1 by strategically analyzing real-world articles and structuring your responses with clear, well-labeled diagrams for maximum marks. If you find yourself needing more guidance, we invite you to connect with us at All Round Education Academy. Our dedicated team is here to support you in achieving your academic goals. For more information, please contact us at tuition@allround-edu.com or +852 6348 8744.