Welcome to the next definitive EconPrep Guide! This is a comprehensive guide to write and excel in your IB Economics Paper 2 exam.
Whether you’re a HL or SL Economics student, we’re confident you’ll find this guide helpful.
In this guide, we’ll cover:
- Introduction to Paper 2
- Paper 2 Marking Scheme and Rubric
- EconPrep’s Paper 2 Reading Framework
- EconPrep’s Paper 2 Part (g) Framework
You can also download the full guide as a 38(!!)-page PDF 👇🏻
Let’s jump right in!
Introduction to Paper 2
Paper 2 is a 1 hour and 45 minutes extended response (essay) paper worth 40 marks.
You are given a choice of 2 questions, and you choose 1 question out of the 2 to answer.
Each question is subdivided into 6 parts, ranging from parts (a) to (g).
In SL Economics, Paper 2 is worth 40% of your overall IB Economics grade.
In HL Economics, Paper 2 is worth 30% of your overall IB Economics grade.
Assessment Objective (AO): Why do Paper 2?
Why do Paper 2? What skills or knowledge is the IB examining in Paper 2?
To understand this, we first unpack how the IB conducts its assessments.
IB Assessment Objectives
As an overview, the IB examines 3 key skillsets in students:
- Knowledge: Do you know and understand the Economic concepts?
- Application/Analysis: Can you apply these Economic concepts either to the given question, or to real-world issues, in the form of in-depth analysis?
- Evaluation: Can you evaluate different perspectives, and synthesise your own thoughts?
These 3 skillsets are detailed as 4 assessment objectives in the IB Guide: AO1, AO2, AO3 and AO4.
- Knowledge and Understanding (AO1)
- Demonstrate knowledge and understanding of specified content
- Demonstrate knowledge and understanding of the common SL/HL syllabus
- Demonstrate knowledge and understanding of current economic issues and data
- HL: Demonstrate knowledge and understanding of the extension topics
- 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
- HL: Demonstrate application and analysis of the extension topics
- 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
- HL: Demonstrate economic synthesis and evaluation of the extension topics
- HL: Select and use economic data using economic theory to make policy recommendations.
- 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
- Select, interpret and analyse appropriate extracts from the news media
- Interpret appropriate data sets
- Use quantitative techniques to identify, explain and analyse economic relationships
EconPrep In Context: Paper 2
How do you translate these in the context of Paper 2?
According to the IB Guide, Paper 2 parts (a) to (g) assess these objectives.
This is vague, perhaps intentionally. It doesn’t help you score.
Here’s how EconPrep interprets the objectives, in the context of Paper 2:
| Assessment Objective (AO) | What IB Economics Examiners are Asking: |
| AO1: Knowledge and Understanding | Does your answers and essay content show you understand the content/concept specific to the demands of the question?How thorough is this understanding?How concisely and logically are you able to show their understanding in their writing? |
| AO2: Application and analysis | How adequately can you apply the article’s content and context to economic concepts and theories learnt?Are you able to identify nuances and/or context-specific points in your written response? Or are you simply regurgitating news and textbook content? |
| AO3: Synthesis and evaluation | How thoroughly are you able to argue for/against economic concepts and theories?How well are you able to uncover assumptions and interrelationships of issues?How clear and logical are your arguments?What perspectives can you adopt when presenting your stance for or against a topic?How well can you distinguish between a summary and an evaluation? |
| AO4: Use and application of appropriate skills | How clear and logical are your key points?How effectively can you construct and convey your points on paper, within a limited time?How effectively are you able to use diagrams as tools to aid your explanation of economic theories?How effectively are you able to bridge the article’s content and context with the theory presented in the textbook?How effectively are you able to draw similarities and differences between academic theory in textbooks, and the article’s content and context? |
And the best part? The rubrics validate our hypothesis.
Rubric: Paper 2 Marking Scheme (HL/SL)
IB Guide Rubric
Actual Exam Rubric
(Source: November 2023 HL Economics Paper 2)
Interpreting IB Guide vs. Actual Exam Rubric
Phew, that was long!
The examples above show how IB Guide rubrics are different from actual rubrics in the Paper 2 exam.
From our analysis in the Paper 1 Ultimate Guide, this appears to be the IBO’s strategy – keep the Guide’s details intentionally vague so educators have flexibility to tailor their teaching methods.
In the Paper 2 exam, the IB provides a suggested markscheme for parts (a) to (g), and a table of markbands (range of marks with descriptors) for part (g). The markscheme informs examiners specific points to look out for in a student’s response.
In short, the markscheme outlines what content you should write, while the markband table outlines how you should convey this content.
The IB Guide outlines that “Marks are allocated using a combination of an analytic markscheme and markbands.” Hence, to maximise your Paper 2 score, you must achieve 2 tasks:
- Include all relevant information in the markscheme in your answer.
- Convey this information in a clear, effective and complete manner.
What to Write: Using the Markscheme and Command Terms
To maximise your score based on the rubrics, you must first include all relevant information in the markscheme.
To do so, you must understand the command terms used in each question. Command terms indicate the depth of response required, and what examiners look out for in Paper 2 essays.
Core command terms for Paper 2 exams include:
| Command Term | Definition |
| Discuss | Offer a considered and balanced review that includes a range of arguments, factors or hypotheses. Opinions or conclusions should be presented clearly and supported by appropriate evidence. |
| Evaluate | Make an appraisal by weighing up the strengths and limitations. |
| Examine | Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue. |
Discuss
This requires you to share a considered and balanced review which includes a range of arguments and factors. These must be supported by appropriate evidence.
Hence, your essay must include multiple factors and key points from different perspectives. These viewpoints must also be balanced and neutral. This also suggests that apart from weighing the pros and cons, you can also make your stand by considering stakeholder outcomes, or long vs. short-term consequences, to state a few.
Evaluate
This requires you to make an appraisal by weighing up the strengths and limitations. While this has a clearer and more direct scope than the ‘Discuss’ command term, the markband rubric also instructs you to ensure your evaluation and synthesis are balanced and effective.
Examine
This requires you to uncover assumptions and interrelationships of a concept or argument. Here the focus lies on interrelationships and assumptions.
Interrelationships means how two or more factors are connected with and affect one another.
Assumptions suggest you must distinguish between the theoretical concept from the textbook, and the actual policy or circumstances in real-world examples.
This explanation suggests that each command term’s expectations are different, even though they may appear under the same question (e.g. Part g). Hence, there is no one-size-fits-all approach to answering Paper 2 part (g) question.
At EconPrep, we never recommend students memorise 1 golden technique or ‘hack’ to answer exam questions.
Rather, we highly recommend understanding best practices and adding various frameworks to your toolkit. These help you adapt your response techniques to the demands of the question, so you can convey your understanding clearly.
We cover these in the next section.
EconPrep’s Paper 2 Best Practices
With years of experience analysing Paper 2’s objectives, assessment rubrics and a range of students’ essays, we’ve put together a list of Best Practices for acing the Paper 2 exam.
Revising for Paper 2
- Revise for Paper 2 concurrently with Paper 1, because they share many overlapping written response styles. Explanations, diagrams and evaluations are similar.
- Familiarise yourself with the IB Command Terms.
- Practise data literacy – identify patterns or outliers in figures, tables or charts.
- Practise (hand)writing your evaluations. This helps you structure your points clearly and enable you to get a feel for how writing in the exam feels like.
- Practise reading ‘between the lines’ for Paper 2 articles. On top of identifying key concepts outlined in articles, learn to spot what is not explicitly communicated.
Structuring Your Responses
Before Writing
- Use reading time wisely – choose your question to answer during reading time.
- To choose your question, review parts (a) – (f), and choose the question which you are more confident at scoring full marks for parts (a) – (f).
- Do not choose questions based on the article’s content, or the complexity of part (g).
- Start the exam by reading the questions first, not reading the article! Pay special attention to part (g)’s asks. This helps you identify relevant concepts, arguments and data to use while reading the article, hence maximising your time.
- Spend at least 15 minutes reading (5min reading time + 10min reading article). Avoid rushing to write.
Why optimise for parts (a) – (f) vs. part (g) or the article? Because of the mark weightages. Parts (a) – (f) are worth 25 marks, while part (g) is worth 15 marks. Unless you are extremely confident in your part (g) response, it’s probably easier for you to score full marks for parts (a) – (f). Hence, optimise for the earlier parts. |
When Writing
- 1 mark = 1 written point. Structure your responses accordingly.
EconPrep breaks down best practices for each question type.
| Part (a) | Tests AO1: knowledge and understanding.To enjoy 2 marks per question, write 2 written parts or key phrases per question. Be detailed and specific.IB textbook provides detailed definitions for all key terms – use it.If unsure, use the article’s context as a last resort. |
| Part (b) – (f) | Tests AO1, AO2 and AO4: knowledge and understanding, application and analysis, and use of appropriate skills.To enjoy 4 marks per question, write 4 written parts or key phrases per question.For questions with diagrams, 2 marks are awarded to diagram drawing, and 2 marks to explaining the diagram.To enjoy 2 marks for diagrams, ensure diagrams’ 3 key essentials are included and labelled correctly. The 3 key essentials are changes in the x-axis, y-axis and the curve.To enjoy 2 marks for explanations, explain in 2 written parts – cause and effect, or primary and secondary implication. Be detailed and specific.For calculations, round two places past the decimal point and show your working.If part (b) has a ‘Draw’ command term, drawing and labelling the diagram is sufficient to score the full range of marks. You do not need to explain the diagram.Strive to score full marks for parts (a) – (f). It’s ok to spend more time on these to maximise probability of scoring full marks here. |
| Part (g) | Tests AO1, AO2, AO3 and AO4: knowledge and understanding, application and analysis, synthesis and evaluation, and use of appropriate skills.Paper 2 Part (g) Answer Framework below provides a structure you can adopt.Focus on clarity and structure, instead of overwhelming/flooding the reader with theory and details. Use the ‘PEEL’ format.The given article is written in a style that aids your part (g) response. Pay attention to the article’s structure. Underline points you can use for your body paragraph explanations, and read between the lines for (hidden) implications you can discuss during evaluation.For diagrams, you need not re-draw diagrams that you might have already drawn in the previous question parts.Remember – the examiner is not scoring your ability to regurgitate/memorise from the textbook. The examiner is scoring your ability to use relevant theory and make evaluations based on the real information given in the article.Hence, where relevant, you may also choose to critique or suggest alternatives to policies that are raised in the given article. |
With each question’s objective covered, below we share two frameworks to structure your preparation to address the question.
EconPrep Paper 2 Framework: Reading the Article
The article is the key difference between Paper 1 and Paper 2 exams. The part (g) question rubric also explicitly mentions it:
- The use of information from the text/data is appropriate, relevant, and is used to formulate a reasoned argument supported by analysis/evaluation.
You are expected to use the article thoroughly and effectively.
How?
I highly recommend students to use the article’s content (and lack thereof) to your advantage.
The article isn’t written purely to inform you. It’s also written to support your part (g) response. Hence, it is critical to also read between the lines for (hidden) implications you can discuss during evaluation.
Remember – the examiner is not scoring your ability to regurgitate/memorise from the textbook. Simply pointing out the country’s policies and the article’s strengths/weaknesses is not enough. You are expected to bring in your knowledge of relevant, tangential theory and make evaluations based on the information given in the article.
To read the article effectively, consider using EconPrep’s SMART Reading Framework.
SMART Reading Framework
| S | Scan the Material |
| M | Mark Important Points |
| A | Analyse Content |
| R | Review Relationships |
| T | Time Yourself |
S: Scan the Material
It’s helpful to scan the questions and material before writing your responses or choosing a question. This helps you identify the question’s demands and choose questions you can answer to the best of your ability.
Scan the material to identify:
- Key concepts being tested
- Key terms (e.g., elasticity, opportunity cost)
- Tables, graphs and diagrams (look for labeled axes and trends)
- Headings and subheadings** to get an overview of the structure
M: Mark Important Points
Use a pen or highlighter to annotate:
- Key economic concepts
- Examples or excerpts that can be used to support your points, especially for part (g).
- Critical points in arguments or policy discussions, which may be helpful for part (g).
A: Analyze Content
Dig deeper by asking:
- What is the economic issue or question being addressed?
- Who are the stakeholders involved (e.g., consumers, firms, governments)?
- What patterns or trends do the table’s values point to? Anything related to the article’s subject matter?
R: Review Relationships
- What are the cause-and-effect relationships described?
- What are the implications or unwritten trade-offs made when making this decision?
T: Time Yourself
Finally, don’t forget to time yourself, especially when you’re attempting past year papers. It can be easy to spend too much time on annotating the article and identifying key points, which reduces the remaining time to write your answers.
Ideally you should be able to complete the ‘SMART Reading’ framework during the 5 minutes of your reading time.
Be disciplined in sticking to your time budget.
Reading the article effectively is half the battle won. Below we share another framework to address the Paper 2 essay, which refers to the part (g) question.
You may notice that the rubrics for Paper 2 part (g) questions are nearly identical to Paper 1 part (b) questions, apart from the last point. Hence, the framework is similar to our Paper 1 framework, which we shared in the Paper 1 Ultimate Guide.
EconPrep Paper 2 Framework for Part (g)
| Step 1: Ask before Writing – What are the keywords of the question? What exactly is the question asking, in my own words? |
| Step 2: Ask before Writing – What specific Economic concepts does the question link to? |
| Step 3: Introduction (1-2 lines) – Briefly answer the question and introduce key concepts here. This is your thesis statement. |
| Step 4: Definition – Define the question’s keywords. |
| Step 5a: Body Paragraph 1 – Explain relevant economic theory; remember to combine information from text (use quotes “”) with your knowledge of Economic theory. *Draw diagrams only where appropriate, only if they support your essay. |
| Step 5b: Body Paragraph 2 – Explain relevant economic theory; remember to combine information from text (use quotes “”) with your knowledge of Economic theory. *Draw diagrams only where appropriate, only if they support your essay.*Tip: If the question asks to discuss between 2 concepts, use Body Para 2 to discuss the 2nd concept (in case you run out of time for Body Para 3/4). |
| Step 5c: Body Paragraph 3 – Explain relevant economic theory; remember to combine information from text (use quotes “”) with your knowledge of Economic theory. *Draw diagrams only where appropriate, only if they support your essay. |
| Step 5d: Body Paragraph 4 – Explain relevant economic theory; remember to combine information from text (use quotes “”) with your knowledge of Economic theory. *Draw diagrams only where appropriate, only if they support your essay. |
| Step 6: Evaluation – Evaluate key concepts/policies via CLASPP in context of article’s information and data. *Evaluation must be (1) balanced and (2) effective. Learn more in our commentary. |
| Step 7: Conclusion – End off with a summary and a reasoned argument based on your response above.*Summary ≠ Reasoned argument ≠ Evaluation! Learn more in our commentary. |
Budgeting Your Time
- You have 5min reading time + 1h 45min (105min) to answer 1 out of 2 questions.
- Allocate more time to scoring most marks for parts (a) – (f).
- EconPrep’s recommendation:
- Reading – 5min reading time + 10min
- Writing Part (a) – (f) – 55min
- Writing Part (g) – 40min
- You do not need to follow this recommendation. Budget your time based on what works for you.
Best Practices for Exam Preparations
Use Past Papers to analyze questions, time yourself and review feedback
Analyze past Paper 2 questions by:
- Understanding recurring themes: Review multiple years of past papers to identify frequently tested topics. For Paper 2, pay special attention to key diagrams, especially the Lorenz curve, Phillips curve, and trade protection diagrams.
- Breaking down question wording: Pay attention to action words like explain, analyze, evaluate, and discuss. This helps clarify what the examiner expects.
- Categorising questions: Group questions by syllabus sections (micro, macro, international, and development economics). This helps identify your strongest and weakest areas.
Time yourself by:
- Setting a timer: Allocate 55 minutes for parts (a) to (f), and 40 minutes for part (g).
- Avoiding distractions: Treat each practice session as if it were the real exam—no phones, no interruptions.
- Tracking your progress: Note how long you take for each part and aim to improve your efficiency without sacrificing quality.
Review feedback by:
- Spotting patterns in examiners’ feedback: Use examiner reports (if available) to understand common mistakes and learn what high-scoring answers look like.
- Focusing on tricky areas: For example, students often struggle with evaluation in Part (g). Use past papers to develop this skill.
Mark Your Own Work (or engage another pair of eyes like EconPrep)
- Use IB mark bands: Refer to the Paper 2 rubrics while reviewing your answers. Assess yourself against each level to see where you stand.
- Check key elements: Ask yourself:
- Did I define key terms?
- Did I include relevant and well-labeled diagrams?
- Is my explanation logical and connected to the question?
- Did I quote and use evidence or data from the article effectively?
- Did I evaluate effectively in Part (g)? Did I provide my own perspectives and inputs, beyond what is shared with me in the article and from the textbook?
- Be objective: While self-marking, put yourself in the examiner’s shoes. It’s better to grade yourself slightly harshly than too leniently.
- Analyze mistakes: Note recurring errors, like mislabeling diagrams, incomplete evaluations, or weak links between theory and the article.
- Set improvement goals: For example, if you struggle with evaluation, practice writing structured “It depends on…” statements in your next session.
- Track progress: Keep a log of your scores for practice essays and aim for consistent improvement.
Learn from Model Answers
- Understand structure: Observe how answers transition smoothly between points and end with a clear conclusion.
- Compare to your work: Identify gaps between your answers and the model to refine your technique.
- Break down each component:
- Study how definitions are phrased.
- Look at how diagrams are integrated and explained.
- Analyze how evaluation is balanced and insightful.
- Rewrite in your own words: After reviewing a model answer, rewrite it using your style and examples to internalize the structure.
- Avoid over-reliance: Use model answers as a guide, not a script. Your answers should reflect your understanding, not mimicry.
Other Best Practices & Tips
- Work in Study Cycles: Dedicate blocks of time to specific sections (e.g., 2 hours on microeconomics) to ensure balanced coverage of the syllabus.
- Collaborate with Peers: Share and discuss answers with classmates or your tutor to gain new perspectives and constructive feedback.
- Review Core Concepts: Regularly revisit key theories, definitions, and diagrams to keep them fresh in your mind.
- Use Online Resources: Check out other platforms like IB-specific forums, YouTube (EconPrep’s YouTube), and economic news outlets to learn fresh insights and examples.
Common Challenges and How to Overcome Them
Ambiguous Questions
Ambiguity in questions exists due to tricky phrasing, which could confuse you (especially in an exam setting). To overcome this, focus on key demands of the question.
- Start by identifying command terms (e.g., explain, analyze, evaluate). Each term specifies the type of response required.
- Break the question into smaller parts. For example:
- What theory or concept is being tested?
- Does the question require diagrams, examples, or both?
- If unsure, revisit the syllabus to ensure your response aligns with the topic’s learning outcomes.
- Practice paraphrasing questions during revision to train your brain to reframe ambiguous phrasing into clearer terms.
Balancing Depth vs.Breadth
When to Prioritize Depth:
- Focus on depth when explaining core concepts or diagrams. For instance, in Part (b) to (f), a well-drawn and thoroughly explained AD-AS diagram is critical.
- When the question involves evaluation (Part g), provide detailed analysis on one or two key points rather than a superficial overview of many.
When to Prioritize Breadth:
- Use breadth for evaluation to consider multiple perspectives, especially material that is not explicitly mentioned in the article. For example, when discussing fiscal policy, mention short-term and long-term impacts, stakeholders, and external constraints.
Burnout
Burnout is a very real issue during the IB journey. Some techniques to manage burnout (that have worked for me) include:
- Using Effective Study Techniques:
- Pomodoro Technique: Study for 25 minutes, then take a 5-minute break. After 4 cycles, take a longer 15–30 minute break.
- Active Recall and Spaced Repetition: Regularly quiz myself on key terms, diagrams, and theories. Use flashcards or apps like Anki.
- Mind Mapping: Create visual mind maps to connect concepts like supply, demand, elasticity, and market structures.
- Rotate between topics to prevent monotony and ensure well-rounded preparation.
- Taking Meaningful Breaks:
- Step away from study materials during breaks. Engage in activities like walking, stretching, or listening to music.
- Practice mindfulness techniques such as deep breathing to reset my focus.
- Avoid using breaks for passive scrolling on social media, as it may lead to distractions.
- Recognizing and Managing Stress:
- Notice early signs of burnout, such as difficulty concentrating, irritability, or physical fatigue.
- Seek support from peers, teachers, or tutors if I’m struggling with a particular topic or feeling overwhelmed.
- Remember that consistency matters more than perfection. It’s better to have a solid grasp of 90% of the syllabus than to overstress about mastering everything.
Other Challenges
- Crafting Clear Evaluations
- Use frameworks like “It depends on…” and “Assuming that…” to ensure your evaluation shows depth.
- Compare perspectives, such as short-term vs. long-term impacts or the views of different stakeholders (e.g., consumers vs. producers).
Final Exam Day Prep List
What to Bring
- Stationery Essentials
- Pens: Bring at least two black or blue pens. These are the only acceptable colors for the IB exam.
- Pencils: Keep sharpened pencils for diagrams.
- Eraser: A clean eraser is crucial for amending diagrams without leaving marks.
- Ruler: A small, straight ruler ensures neat and accurate diagrams, which can impress examiners.
- Transparent Water Bottle
- Watch: Use a simple analog watch to manage your time effectively. Smartwatches are not allowed.
- Admission Slip: Double-check that you have the necessary identification and paperwork required to enter the exam hall. Remember your school and individual ID.
Mindset Tips
- Breathe: If you feel anxious, pause for a moment and take deep breaths to steady yourself.
- Break Down the Task: Remember, Paper 1 is just two parts. Focus on each part as a small goal rather than the entire paper.
- Focus on What You Know: Answer the parts of the question you’re confident about first to build momentum.
- Stick to a Plan: Spend 25–30 minutes on Part (a) and 40–45 minutes on Part (b), leaving 5–10 minutes to review your answers.
- Track Time: Check your progress after every 20 minutes to ensure you’re on schedule.
- Don’t Dwell: If stuck on a part of the question, move on and return later if time permits.
Last-Minute Revision
- Key Diagrams: Ensure you can draw and label critical diagrams such as:
- AD-AS Curve: For macroeconomic analysis.
- PPC (Production Possibility Curve): For opportunity cost and efficiency.
- Elasticity Diagrams: PED, PES, etc.
- Market Structures: Perfect competition, monopoly, and monopolistic competition diagrams.
- Definitions: Review precise definitions for frequently used terms (e.g., opportunity cost, inflation, elasticity). Starting your answers with accurate definitions sets the tone for a strong response.
- Examples: Recall at least 1–2 real-world examples for each topic. Use news articles or case studies related to unemployment, trade barriers, or fiscal policy to substantiate your answers.
- Command Terms: Revisit the meaning of key IB command terms (e.g., “explain,” “evaluate,” “discuss”) to tailor your answers appropriately to the question’s demands.
Practical Tips for Exam Day
Before Entering the Hall
- Arrive Early: Reach the venue at least 30 minutes early to settle any logistical issues and calm pre-exam jitters.
- Avoid Overloading Your Brain: Avoid cramming new information; instead, briefly skim through key notes.
During the Exam
- Read Questions Carefully: Spend 2–3 minutes analyzing the question to ensure you fully understand the requirements.
- Write Clearly: Examiners appreciate legible handwriting and well-organized answers.
- Stick to the Plan: Stay focused and follow your time allocation plan to avoid rushing.
After the Exam
- Reflect, Don’t Stress: Avoid discussing the exam immediately after; focus on resting and preparing for the next paper.
