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IB Economics Syllabus (HL & SL) – Complete Guide
TUTORZONE SUBJECT GUIDE · IB
IB Economics is a two-year Diploma Programme subject organised into four units — from the demand and supply curves of individual markets to the exchange rates, trade and development issues of the global economy. This complete guide covers the syllabus students sit in the May and November 2026 examination sessions: every unit and topic at Standard Level (SL) and Higher Level (HL), the three-paper assessment structure with marks and weightings, the internal assessment portfolio, and how top-scoring students prepare.
Direct Answer：What does IB Economics cover?
IB Economics is built around four units — Unit 1 Introduction to economics, Unit 2 Microeconomics, Unit 3 Macroeconomics and Unit 4 The global economy — studied through nine key concepts (scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence and intervention). Standard Level (SL) students study 150 recommended teaching hours, while Higher Level (HL) adds HL-only extension topics and a third paper within 240 hours. Assessment is 70% external (Paper 1 and Paper 2) and 30% internal at SL, and 80% external (Papers 1–3) and 20% internal at HL.
What Is IB Economics (HL & SL)?
IB Economics is a Group 3 (individuals and societies) subject in the International Baccalaureate Diploma Programme (IBDP), studied over two years by students aged 16 to 19. It can be taken at Standard Level (SL) or Higher Level (HL): the IB recommends 150 teaching hours for SL and 240 for HL. The current guide was first assessed in 2022 — it was published in February 2020 and updated in October 2022 — and it is the version students will sit in the May and November 2026 examination sessions.
The 2022 syllabus reframed economics around nine key concepts and six real-world issues: students now learn to evaluate policy and its consequences, not just to draw and label curves.
Two features define the course. First, SL and HL study the same four units — the difference is depth, not coverage: HL adds extension topics such as behavioural economics, market power, asymmetric information, the Phillips curve, the Lorenz curve and the Marshall-Lerner condition, plus a third examination paper. Second, the course is anchored in the real world: students examine six real-world issues through the nine key concepts, and build a portfolio of three commentaries on published news articles, which forms the internal assessment.
Syllabus Topics — The Four Units
The syllabus content is organised into four units. Recommended teaching hours per unit: Unit 1 10 hours (SL & HL); Unit 2 35 hours (SL) / 70 hours (HL); Unit 3 40 / 75; Unit 4 45 / 65. HL-only extension material appears within Units 2, 3 and 4.
Unit 1 — Introduction to EconomicsSL 10 hours · HL 10 hours
- 1.1 What is economics? — scarcity, choice, opportunity cost, the production possibility curve
- 1.2 How do economists approach the world? — economic models, ceteris paribus, positive and normative statements, the nine key concepts
Unit 2 — MicroeconomicsSL 35 hours · HL 70 hours
- 2.1 Demand — the demand curve, non-price determinants, movements along and shifts of the curve
- 2.2 Supply — the supply curve, non-price determinants, movements along and shifts of the curve
- 2.3 Competitive market equilibrium — equilibrium price and quantity, consumer and producer surplus, allocative efficiency
- 2.4 Critique of the maximizing behaviour of consumers and producers — the limits of rational choice, with the behavioural economics extension at HL
- 2.5 Elasticity of demand — PED, XED and YED, their determinants and applications
- 2.6 Elasticity of supply — PES, its determinants and applications
- 2.7 Role of government in microeconomics — indirect taxes, subsidies, price controls, government failure
- 2.8 Market failure — externalities and common pool or common access resources — negative and positive externalities, the tragedy of the commons
- 2.9 Market failure — public goods — non-rivalry, non-excludability and the free-rider problem
- 2.10 Market failure — asymmetric information (HL only)
- 2.11 Market failure — market power (HL only) — market structures, business objectives, monopoly and oligopoly
- 2.12 The market’s inability to achieve equity (HL only)
Unit 3 — MacroeconomicsSL 40 hours · HL 75 hours
- 3.1 Measuring economic activity and illustrating its variations — GDP and GNI, the circular flow model
- 3.2 Variations in economic activity — aggregate demand and aggregate supply, the business cycle
- 3.3 Macroeconomic objectives — low unemployment, low and stable inflation, economic growth, equity; with the Phillips curve extension at HL
- 3.4 Economics of inequality and poverty — with the Lorenz curve and Gini coefficient extension at HL
- 3.5 Demand management (demand-side policies) — monetary policy
- 3.6 Demand management — fiscal policy
- 3.7 Supply-side policies — market-based and interventionist measures
Unit 4 — The Global EconomySL 45 hours · HL 65 hours
- 4.1 Benefits of international trade — comparative advantage and the gains from trade
- 4.2 Types of trade protection — tariffs, quotas, subsidies, voluntary export restraints, administrative barriers
- 4.3 Arguments for and against trade control/protection
- 4.4 Economic integration — free trade areas, customs unions, common markets, monetary unions
- 4.5 Exchange rates — floating and fixed systems, with the Marshall-Lerner condition and J-curve effect at HL
- 4.6 Balance of payments — the current account and the financial account
- 4.7 Sustainable development
- 4.8 Measuring development — single indicators and the Human Development Index
- 4.9 Barriers to economic growth and/or economic development
- 4.10 Economic growth and/or economic development strategies
Exam Format & Paper Structure
IB Economics is assessed through written examination papers and an internal assessment portfolio. There is no multiple-choice component — every paper requires written answers — and HL students sit one additional paper. Where quantitative questions appear (Paper 2, and HL Paper 3), calculators are allowed.
| Component | Level | Content | Duration | Marks | Weighting |
|---|---|---|---|---|---|
| Paper 1 | SL | Extended response — 3 questions from all four units, answer one; part (a) 10 marks + part (b) 15 marks | 1 hr 15 min | 25 | 30% |
| Paper 2 | SL | Data response — 2 questions from all four units, answer one; seven parts (a)–(g) on a stimulus text and data | 1 hr 45 min | 40 | 40% |
| Paper 1 | HL | Extended response (same structure as SL) | 1 hr 15 min | 25 | 20% |
| Paper 2 | HL | Data response (same structure as SL; HL extension material not examined) | 1 hr 45 min | 40 | 30% |
| Paper 3 | HL | Policy paper — 2 compulsory questions on text and quantitative data; part (a) max 20 marks, part (b) policy recommendation max 10 marks | 1 hr 45 min | 60 | 30% |
| Internal assessment | SL & HL | Portfolio of three commentaries on news articles (max 800 words each) | 20 hours | — | SL 30% · HL 20% |
Paper 1 is identical in format at both levels: three extended-response questions drawn from the four units, of which you answer one. Each question has a part (a) worth 10 marks (explain a concept or theory, with diagrams) and a part (b) worth 15 marks (discuss or evaluate, using real-world examples). Paper 2 is also common: two data-response questions (answer one), each worth 40 marks across seven parts (a)–(g) — definitions, calculations, diagram work and a final evaluation in part (g) based on the stimulus text and data. HL extension material is not examined on Paper 2.
Paper 3 exists only at HL: two compulsory policy questions built on text-based and quantitative data (each worth 30 marks, 60 in total). Part (a) tests knowledge, application and quantitative skills — elasticity, exchange-rate and national-income calculations, with marks awarded for workings — and part (b) asks you to recommend a policy to address the problem in the stimulus. Calculators are allowed in every quantitative component. Assessment objectives: AO1 knowledge and understanding, AO2 application and analysis, AO3 synthesis and evaluation, and AO4 the use and application of appropriate skills, including quantitative techniques and diagrams.
Why Study IB Economics?
Highly Regarded for University Admissions
IB Economics HL is a natural fit — and often a preferred subject — for economics, finance, business, law, PPE, international relations and management courses at leading universities in the UK, US, Canada, Australia and Hong Kong.
Built Around the Real World
The course examines six real-world issues through the news — trade tensions, inflation, inequality, climate policy. Students finish able to read a financial newspaper with genuine understanding, not just memorised curves.
Skills That Transfer to Any Career
Essay writing, diagram analysis, data interpretation and policy evaluation are exactly the skills that finance, consulting, government, journalism and technology employers reward — and the IA portfolio is concrete evidence of them.
Study Tips & Preparation Strategies
- Master the diagrams——every answer worth 4 or more marks deserves a relevant, correctly labelled diagram; practise “dynamic” diagrams (show the shift and explain it), and label axes precisely — price on the vertical axis, quantity on the horizontal.
- Keep a real-world examples bank——Paper 1 part (b), Paper 2 part (g) and Paper 3 part (b) all reward specific, current examples: name the country, the policy and the data. Update the bank weekly from the news.
- Practise past papers——use May and November past papers from 2022 onwards (the current syllabus), timed and marked against the official markschemes, and study the examiner reports for the traps examiners flag.
- Learn the command terms——explain, discuss, evaluate, recommend and calculate each demand a different answer shape; marks are awarded for exactly what the command asks.
- Start the IA in Year 1——choose three articles from three different sources, each covering a different unit (not Unit 1), and draft each commentary within 800 words using one diagram and one key concept per commentary.
- Show workings in every calculation——Paper 2 part (b) and Paper 3 award marks for valid working even when the final answer is wrong; round to two decimal places and include units.
Who Should Take IB Economics?
- Students aiming at economics, finance, business, law, PPE, international relations or management degrees — where IB Economics HL is direct and valued preparation
- Those who enjoy connecting theory to the news — prices, inflation, trade and policy — and want a humanities subject with a strong analytical core
- Students comfortable with basic algebra and graphs: SL suits essay-and-diagram strength, while HL adds quantitative policy work through Paper 3
- Anyone who likes writing structured arguments and weighing up the consequences of real policy decisions
Recommended Resources
- Official IB Economics guide——the Economics guide (first assessment 2022) from the IB Programme Resource Centre, plus official specimen papers and past papers.
- Paul Hoang, Economics for the IB Diploma——the most widely used course companion, fully aligned to the current syllabus and updated for first assessment 2022.
- Ellie Tragakes, Economics for the IB Diploma (Cambridge University Press)——a thorough alternative with strong coverage of the HL extension topics.
- Data and news sources——build your examples bank and find IA articles in quality financial and business media (such as the South China Morning Post, BBC Business or The Economist), and use IMF, World Bank and OECD data.
- Sibling guides——economics is a quantitative social science: see the maths behind the models in our A-Level Maths Syllabus guide and IGCSE Mathematics Syllabus guide, and explore the IB’s analytical style in our IB Physics Syllabus guide.
Expert Advice: How to Score a 7
A 7 in IB Economics is not earned by memorising definitions — it is earned by drawing accurate, labelled diagrams and using them to evaluate real-world policy with balance and judgement.
- Diagrams are your best marks——practise every core diagram until it is automatic: demand and supply, externalities, indirect taxes, AD/AS, the Phillips curve (HL), the Lorenz curve (HL) and exchange-rate diagrams. One good dynamic diagram beats a page of description.
- Build evaluation into every answer——in part (b), part (g) and Paper 3 part (b), weigh the arguments for and against, consider the stakeholders, and reach a justified conclusion; the markschemes reward balanced discussion explicitly.
- Train Paper 3 like a maths paper——practise elasticity, exchange-rate and national-income calculations with workings, two-decimal rounding and units; the own-figure rule means a small early error need not cost you the rest of the question.
- Use named, current examples——a specific policy with a date and an outcome is worth far more than “a government could…” generic phrasing; examiners reward real engagement with the world.
- Time discipline——Paper 2 gives 1 hour 45 minutes for one 40-mark question: spend about 15 minutes reading the stimulus, then allocate roughly a minute per mark, saving enough time for a full evaluation in part (g).
Frequently Asked Questions (FAQ)
Q: What is the difference between IB Economics SL and HL?
HL adds extension topics in Units 2–4 — behavioural economics, asymmetric information, market power and equity in microeconomics; the Phillips curve and the Lorenz curve in macroeconomics; the Marshall-Lerner condition, J-curve effect and terms of trade in the global economy — and a third external paper (Paper 3, a policy paper worth 30%). The IB recommends 240 teaching hours for HL versus 150 for SL, and the weightings differ: HL is Paper 1 20%, Paper 2 30%, Paper 3 30%, IA 20%, while SL is Paper 1 30%, Paper 2 40%, IA 30%.
Q: How many papers are there in IB Economics?
SL students sit two external papers — Paper 1 (extended response, 1 hour 15 minutes) and Paper 2 (data response, 1 hour 45 minutes) — plus the internal assessment portfolio. HL students sit those two papers plus Paper 3 (policy paper, 1 hour 45 minutes). There is no multiple-choice paper in economics.
Q: What is the internal assessment (IA) in IB Economics?
The IA is a portfolio of three commentaries, each written on a published news article. The three articles must come from three different sources and cover three different syllabus units (not Unit 1), and each commentary is a maximum of 800 words, linking the article to at least one key concept and the relevant economic theory. It is worth 30% of the final grade at SL and 20% at HL, with about 20 hours of class time recommended.
Q: Is IB Economics hard? Do you need to be good at maths?
IB Economics is essay- and diagram-heavy rather than maths-heavy. The quantitative content — elasticity, exchange rates and national income — needs solid but not advanced algebra, and appears mainly in Paper 2 calculations and, more substantially, in HL Paper 3. Students who keep up with real-world examples, practise diagrams and write regular timed essays score well; cramming theory without practising application is the usual reason for disappointing grades.
Further Resources & Next Steps
- Official Resources——the International Baccalaureate Organisation (IBO) publishes the Economics guide (first assessment 2022), specimen papers and past papers on the Programme Resource Centre (IBIS); access is via your school’s IB coordinator.
- Further Reading——Paul Hoang’s Economics for the IB Diploma and Ellie Tragakes’ Economics for the IB Diploma are the two most widely used study texts for the current syllabus.
- Parent Tips——Ask your child to explain one economics news story a week to you — who wins, who loses and why the policy was chosen; this one habit builds the real-world examples and evaluation skills that separate 6s from 7s.
Note: The information above is for reference only. Please consult professional education institutions for details.
This article was initially drafted and organised with AI. Editor / Professor Chan Kwok-wai; Managing Editor / Kong Yee-leung
Direct Answer：What topics are in the IB Economics syllabus?
The IB Economics syllabus (first assessment 2022) has four units: Unit 1 Introduction to economics (what economics is, and how economists approach the world); Unit 2 Microeconomics (demand and supply, elasticity, the role of government, and market failure — externalities, common pool resources and public goods, with asymmetric information, market power and equity added at HL); Unit 3 Macroeconomics (measuring economic activity, AD/AS, macroeconomic objectives, inequality and poverty, and monetary, fiscal and supply-side policies); and Unit 4 The global economy (trade, protection, economic integration, exchange rates, the balance of payments, sustainable development and development strategies).
Direct Answer：Is IB Economics hard?
IB Economics is demanding but very learnable. It rewards structured essay writing, accurate diagrams and a habit of following real-world economics in the news far more than raw ability — and the quantitative demands are modest: GCSE-style algebra, mainly in Paper 2 calculations and HL Paper 3. Students who build an examples bank, practise timed past papers from 2022 onwards and start the IA portfolio early consistently score 6s and 7s.
