ECONOMICS HL HANDBOOK
Table of contents
Aims
Economics aims
The aims of the economics course at SL and HL are to enable students to:
• develop a critical understanding of a range of economic theories, models, ideas and tools in the
areas of microeconomics, macroeconomics and the global economy
• apply economic theories, models, ideas and tools and analyse economic data to understand and
engage with real-world economic issues and problems facing individuals and societies
• develop a conceptual understanding of individuals’ and societies’ economic choices, interactions,
challenges and consequences of economic decision-making.
Assessment objectives
By the end of the economics course, students are expected to achieve the following assessment
objectives (AOs).
1. Knowledge and understanding (AO1)
• Demonstrate knowledge and understanding of specied content
• Demonstrate knowledge and understanding of the common SL/HL syllabus
• Demonstrate knowledge and understanding of current economic issues and data
• At HL only: demonstrate knowledge and understanding of the extension topics
2. Application and analysis (AO2)
• Apply economic concepts and theories to real-world situations
• Identify and interpret economic data
• Analyse how economic information is used effectively in particular contexts
• In the internal assessment task: explain the link between key economic concepts and economic
commentaries
• At HL only: demonstrate application and analysis of the extension topics
3. Synthesis and evaluation (AO3)
• Examine economic concepts and theories
• Use economic concepts and examples to construct and present an argument
• Discuss and evaluate economic information and theories
• At HL only:
• demonstrate economic synthesis and evaluation of the extension topics
• select and use economic data using economic theory to make policy recommendations.
4. Use and application of appropriate skills (AO4)
• Produce well-structured written material, using appropriate economic theory, concepts and
terminology
• Produce and use diagrams to help explain economic theory, concepts and real-world issues
Assessment objectives in practice
Syllabus Outline
Assessment Outline - HL
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External Assessment
External assessment
Two different methods are used to assess students.
• Analytic mark schemes
• Mark bands
For all three examination papers, there are analytic mark schemes and mark bands. The mark bands are
related to the assessment objectives established for the economics course and the individuals and
societies grade descriptors and are published in the guide. The analytic mark schemes are specie to
each examination and are published separately in a mark scheme document.
Written papers
The external assessment in economics consists of two examination papers at SL and three
examination papers at HL that are externally set and externally moderated. They are designed to allow
students to demonstrate their competencies in relation to the economics assessment objectives and
specific parts of the economics syllabus, namely the common topics and the HL extension material. All
questions on the examination papers will be based on the topics in this guide.
The external components contribute 70% to the final assessment at SL, and 80% to the final
assessment at HL.
In common with all examination papers, students at SL and HL are given five minutes of reading time
before they begin answering the papers.
Command terms
Teachers and students must be familiar with the command terms used at each assessment objective
level to understand the depth of treatment required in examination questions. Cognitive demands
terms progress from AO1 to AO3, while AO4 terms are specific to particular skills.
Examination questions may use any command term from the assessment objective level specified
in the “Syllabus” section or a less demanding command term from a lower level. For example, if the
assessment objective level for a topic is AO2, an examination question could contain any of the
command terms for AO2, such as “explain”, “distinguish” and so on. Alternatively, the examination
question could contain a command term from AO1, such as “describe”. However, a more demanding
command term, such as “evaluate”, from a higher level (AO3 in this case), cannot be used.
The command terms used in each question (or part thereof) indicate the depth required. The
command terms are organized by assessment objective level in the “Assessment objectives” section
earlier in the guide and defined in the “Glossary of command terms” in the appendix.
Use of diagrams
Students are expected, where appropriate, to include correctly labelled and clearly drawn diagrams.
Sometimes individual questions specify that the use of diagrams is essential because more detailed
information is required from the students in order to show specific knowledge and understanding.
Use of examples
Students are expected, where appropriate, to illustrate their answers with real-world examples in
order to reach the highest mark bands. Examples should be used to highlight economic concepts,
theories and relationships in the real world. When examples are used, students should not just state
the example (as this is too limited) but should also offer some explanation of the example in relation
to the question asked.
Use of economic terms
Students are expected to demonstrate the ability to appropriately dene, use and apply the
economics terms included in the “Syllabus” section.
Use of calculators
Paper 1 (SL/HL)
Calculators are not permitted.
Paper 2 (SL/HL) and Paper 3 (HL only)
While all questions requiring a calculator can be answered fully using a four function (plus, minus,
multiply, divide) calculator, graphic display calculators (GDCs) are allowed during the examination.
The graphing functions on these calculators may assist students and it is therefore recommended that
all students are familiar with the use of GDCs.
Teachers and schools must adhere to the regulations regarding the use of electronic calculators in
examinations, and students must be made aware of these. This information can be found in “Annex 2:
Calculators guidance” of the Diploma Programme Assessment procedures.
Links to the specic details in the syllabus
Examination questions will be drawn from the four units of the syllabus, namely:
• Unit 1: Introduction to Economics
• Unit 2: Microeconomics
• Unit 3: Macroeconomics
• Unit 4: The global economy.
External Assessment Details
External assessment details—HL
Paper 1
Duration: 1 hour 15 minutes
Weighting: 20%
• The structure of this paper is the same as SL paper 1. However, the questions that require extended
responses may be the same as, or different from, the SL paper. Questions in this paper are drawn
from the four units of the syllabus including the HL extension material and topics studied at HL
only.
Please refer to the section “External assessment details—SL”, for further details
Paper 2
Duration: 1 hour 45 minutes
Weighting: 30%
This paper is the same for both SL and HL.
Paper 2
Duration: 1 hour 45 minutes
Weighting: 40%
This paper is the same for both SL and HL.
Students answer one question from a choice of two.
• The questions are each subdivided into seven parts, (a), (b), (c), (d), (e), (f) and (g). Parts (a) and (b)
both have subparts showing (i and ii)
• Students are expected to demonstrate the following assessment objectives.
Paper 3
Duration: 1 hour 45 minutes
Weighting: 30%
• Students answer two compulsory questions.
• The questions are subdivided into parts (a) and (b). Part (a) has subparts.
Students are expected to demonstrate the following assessment objectives.
• Questions in this paper are drawn from the four units of the syllabus including the HL extension
material and topics studied at HL only.
• The command terms used indicate the depth of response required.
• Marks are allocated using a combination of an analytic mark scheme and mark bands.
Many question parts require the use of a calculator. GDCs are allowed during the examination, and
students should be familiar with their use. Full details are given in the section “Use of calculators”.
• An answer booklet will be provided, and additional answer sheets may be used if necessary.
External Assessment Markbands
Internal Assessments
Purpose of internal assessment
Internal assessment is an integral part of the course and is compulsory for both SL and HL students.
It enables students to demonstrate the application of their skills and knowledge, and to pursue their
personal interests, without the time limitations and other constraints that are associated with written
examinations. The internal assessment should, as far as possible, be woven into normal classroom
teaching and not be a separate activity conducted after a course has been taught.
The internal assessment requirements at SL and at HL are the same for the economics course. Both
SL and HL economics students produce a portfolio of three commentaries based on articles from
published news media.
Guidance and authenticity
The portfolio submitted for internal assessment must be the student’s own work. However, it is not
the intention that students should decide on the appropriate articles and then be left to work on the
internally assessed component without any further support from the teacher. The teacher should play
an important role during both the planning stage and the period when the student is working on the
internally assessed work. It is the responsibility of the teacher to ensure that students are familiar with:
• the requirements of the type of work to be internally assessed—the nature of the sources of the
articles, and the formal requirements of the portfolio—and the IB’s academic honesty policy
• the assessment criteria; students must understand that the work submitted for assessment must
address these criteria effectively.
Teachers and students must discuss the internally assessed work. Students should be encouraged
to initiate discussions with the teacher to obtain advice and information, and students must not be
penalized for seeking guidance. As part of the learning process, teachers should read and give advice
to students on one draft of the work. The teacher should provide oral or written advice on how the
work could be improved but must not edit the draft. The next version handed to the teacher must be
the final version for submission.
Internal Assessment Details
Internal assessment details—SL and HL
Portfolio
Duration: 20 hours
Weighting: 30% (SL), 20% (HL)
Rationale
Internal assessment in economics enables students to demonstrate the application of their knowledge
and understanding of economic theory in relation to real-world situations.
Requirements
Both SL and HL economics students produce a portfolio of three commentaries based on articles from
published news media. Each article must be based on a different unit of the syllabus (excluding Unit
1: Introduction to economics): Unit 2: Microeconomics, Unit 3: Macroeconomics and Unit 4: The global
economy.
Articles
The articles may be from a newspaper, a journal or the internet, but must not be from television or
radio broadcasts. If a student includes a relatively lengthy article, which is discouraged, the student
must highlight the section(s) of the article upon which the commentary is based. Articles used must
have been published no earlier than one year before the writing of the commentary.
The article on which the commentary is based should, where possible, be in the same language as
the commentary. If an extract in another language is used, the student must provide an accurate
translation of the whole article. Students must also include the original article in their portfolio.
Individual work
Students must select their own articles to discuss. It may happen that more than one student bases his
or her commentary on the same article, but the article must not be given to the class by the teacher,
and the production of the commentary must be each student’s individual work. A commentary must
not be prepared collaboratively.
Key concepts
Each of the three commentaries must use a different key concept as a lens through which to analyse
the published extracts. Students will risk losing 3 marks in criterion D if they use the same key concept
in two commentaries and up to 6 marks if the same key concept is used in three commentaries. Please
refer to the Economicsteachersupport material for further guidance.
Focus
Each commentary must:
• explain the links between the article, a key concept and economic theory taken from the unit of the
syllabus on which the article is based
• demonstrate economic insights into the implications of the article (that is, it should provide
evidence of the student’s ability to discuss current events from the point of view of an economist).
On each commentary students must record:
• the title of the article
• the source of the article (including date of access to the site if from the internet)
• the date the article was published
• the date the commentary was written
• the word count of the commentary
• the unit of the syllabus to which the article relates
• the key concept being used
Each commentary in the portfolio is assessed individually against the internal assessment criteria. The
teacher will initially assess each student’s work. Please note that internal standardization must take
place if more than one teacher is assessing the work. A sample of the work will then be moderated by
the IB.
Please refer to Diploma Programme Assessment procedures for details on how to present the work for
moderation.
Word limit
Students must produce a portfolio of three commentaries. Each commentary must not exceed 800
words.
Note: Moderators will not read beyond 800 words for each commentary.
The following are not included in the word count.
• Acknowledgments
• Contents page
• Diagrams
• Labels—of five words or fewer
• Headings on diagrams—of 10 words or fewer
• Tables of statistical data
• Equations, formulae and calculations
• Citations (which, if used, must be in the body of the commentary)
• References (which, if used, must be in the footnotes/endnotes)
Please note that footnotes/endnotes may be used for referencing purposes only. Denitions of
economic terms and quotations, if used, must be in the body of the work and are included in the word
count. Please note that a citation is a shorthand method of making a reference in the body of the
commentary, which is then linked to the full reference in the footnotes/endnotes.
Rubric requirements
If students do not adhere to the following requirements, they can lose marks under criterion F: Rubric
requirements.
1. Articles
Each article must be based on a different unit of the syllabus (excluding Unit 1: Introduction to
economics).
2. Sources
Students must use a different source for each commentary.
3. Contemporary articles
Students need to look for articles relating to current events, and these must be published no earlier
than one year before the writing of the commentary.
Internal Assessment Criteria
Each commentary is assessed individually for the rst ve assessment criteria (criteria A–E) and then
criterion F is applied to the whole portfolio.
The maximum for the portfolio is 45 marks: (14 marks x 3 commentaries) + 3 marks = 42 + 3 marks. The
assessment criteria are related to the assessment objectives.
• Criterion A: AO2 and AO4
• Criterion B: AO1
• Criterion C: AO2
• Criterion D: AO2
• Criterion E: AO3
• Criterion F: AO4
Appendix 1: Specimen paper with markscheme
Specimen papers with markscheme.pdfAppendix 2: IA exemplar
Sample IA.pdfAppendix 3: EE exemplar
Sample EE.pdf