IB Economics Paper 1: Ultimate Guide (2025 IB Exams)

This is EconPrep’s definitive guide to writing an IB Economics Paper 1. Whether you’re a HL or SL Economics student, you’ve come to the right place to master your Paper 1 skillsets.

In this guide, we’ll cover:

Introduction to Paper 1
Paper 1 Marking Scheme and Rubric
EconPrep’s Paper 1 Framework (Part a)
EconPrep’s Paper 1 Framework (Part b)

You can also download the full guide as a 30-page PDF 👇🏻

With that, let’s dive right in!

Introduction to Paper 1

Paper 1 is a 1 hour and 15 minutes extended response (essay) paper worth 25 marks.

You’re given a choice of 3 questions, and you choose 1 question out of the 3 to answer. Each question is subdivided into 2 parts, (a) and (b).

In SL Economics, Paper 1 is worth 30% of your overall IB Economics grade.

In HL Economics, Paper 1 is worth 20% of your overall IB Economics grade.

Assessment Objective (AO): Why do Paper 1 for IB Economics?

Why do Paper 1? What skills or knowledge is the IB testing in Paper 1?

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 1

How do you translate these in the context of Paper 1?

According to the IB Guide, Paper 1 parts (a) and (b) assess all these objectives.

IB Economics Paper 1 Assessment Objectives

This table is vague, perhaps intentionally. It doesn’t help you score.

Here’s how EconPrep interprets the assessment objectives, in the context of Paper 1:

Assessment Objective (AO)	What IB Economics Examiners are Asking:
AO1: Knowledge and Understanding	Does your essay content show you understand the content/concepts specific to the demands of the question?How thorough is this understanding?How simply and logically are you able to show your understanding in your written essay?
AO2: Application and analysis	How adequately can you apply economic concepts and theories to real-world situations, whether real or hypothetical?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 real-world examples and issues with the theory presented in the textbook?How effectively are you able to draw similarities and differences between academic theory in textbooks, and real-world scenarios?

And the best part? The rubrics validate our hypothesis.

Rubric: Paper 1 Marking Scheme (HL/SL)

IB Guide Rubric

Actual Exam Rubric

(Source: November 2023 HL Economics Paper 1)

Interpreting IB Guide vs. Actual Exam Rubric

The examples above show how IB Guide rubrics are different from rubrics in the Paper 1 exam.

The IB Guide publishes a table of markbands (range of marks with descriptors). In the actual Paper 1 exam, this markband table is supplemented with a suggested markscheme. 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 1 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 1 essays.

Core command terms for Paper 1 exams include:

Command Term	Definition
Explain	Give a detailed account including reasons or causes.
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.

‘Explain’ usually appears in Part (a) questions, while the latter appear for Part (b) questions.

Explain

This requires you to give a detailed account with reasons and causes. You have 2 opportunities to show detail: In your written explanation and in your diagram.

In your written explanation, you must explain cause-and-effects, or how point A leads to point B, which then leads to point C. This then results in points D and E as consequences.

In your diagram, you must use the diagram as a tool to illustrate your written explanation, which can be lengthy and technical. This also explains why you use the phrase “This is reflected in the diagram below” as a transition sentence.

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 b). Hence, there is no one-size-fits-all approach to answering Paper 1 questions.

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 1 Best Practices

With years of experience analysing Paper 1’s objectives, assessment rubrics and a range of students’ essays, we’ve put together a list of Best Practices for acing the Paper 1 exam.

Revising for Paper 1

Revise for Paper 1 concurrently with Paper 2, because they share many overlapping written response styles. Explanations, diagrams and evaluations are similar.
Familiarise yourself with the IB Command Terms.
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.
Start assembling a personal library of real-world examples for every concept. Start this early.
- To speed up the process, avoid searching Google News for real-world examples.
- Instead, use a mix of ChatGPT and Google. Use ChatGPT to generate potential real-world examples, and verify these examples with Google to ensure they are true and relevant to the concept.
- This technique speeds up your learning, and reduces reliance on the textbook for real-world examples.

Structuring Your Responses

Before Writing

Use reading time wisely – choose your question to answer during reading time.
To choose your question, review parts (a) and (b). Ideally choose a question that you are confident of scoring for both parts (a) and (b). However, if unsure, choose the question that you are more confident in scoring for part (a).
Do not choose questions based on the complexity of part (b), even if it has a higher mark (15 marks vs. 10 marks). Unless you are very confident for Part (b), it is usually easier to score higher marks for part (a) than part (b).
Choose your question within the 5 mins reading time.
Avoid rushing to write. If possible, spend at least 5-10mins planning your key points.

When Writing

EconPrep breaks down best practices for each question type.

Part (a)

Tests AO1, AO2 and AO4: knowledge and understanding, application and analysis, and use of appropriate skills.IB textbook provides detailed definitions for all key terms – use it.Strive to score maximum marks for part (a). It’s ok to spend more time on these to maximise probability of scoring more marks here. But do not over-write – remember AO4!Focus on clarity and structure, instead of overwhelming/flooding the reader with theory and details. Use the ‘PEEL’ format.Answer the question early on in your essay. Pay attention to details in your diagram and depth of explanation.Don’t evaluate in part (a).EconPrep Paper 1 Answer Framework provides a structure and series of detailed frameworks you can adopt.

Part (b)

Tests AO1, AO2, AO3 and AO4: knowledge and understanding, application and analysis, synthesis and evaluation, and use of appropriate skills.Focus on clarity and structure, instead of overwhelming/flooding the reader with theory and details. Use the ‘PEEL’ format.On top of diagram and explanation, focus on the effectiveness of your evaluation.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 your real-world examples and evaluation angles.Focus on clarity and structure, instead of overwhelming/flooding the reader with theory and details. Use the ‘PEEL’ format.Ensure your evaluation is effective and balanced – avoid discussing too much from one angle only. Share perspectives from opposing sides.EconPrep Paper 1 Answer Framework provides a structure you can adopt.If you see absolute terms like ‘always’, ‘never’ etc. you should think about instances where the claim is untrue. This is a clear indication that examiners are expecting an opposing perspective in your essay.Always include a real-world example where appropriate.

EconPrep Paper 1 Framework – Part (a)

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: Definition – Define the question’s keywords.

Step 4: Brief Answer – Briefly answer the question and introduce key concepts here. This is your thesis statement.

[Optional] Step 4a: Real-world Example – Introduce a quick real-world example here, only if it simplifies your essay writing. For example, if asked to compare price elasticities of demand for 2 goods, specifying 2 actual goods makes writing the essay easier, instead of referring to them as Good A vs. Good B throughout the essay.*Note: Real-world examples are not necessary for part (a). Hence, use them only where appropriate, only if they support your essay.

Step 5: Diagram – Draw a diagram to supplement your Brief Answer.

Step 6: Explanation – Explain your brief answer/thesis statement in more detail. Use your diagram as a tool to strengthen your explanation.

Step 7: Conclusion – End off by restating your brief answer.

EconPrep Paper 1 Framework – Part (b)

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: Definition – Define the question’s keywords.

Step 4: Brief Answer – Briefly answer the question and introduce key concepts here. This is your thesis statement.

Step 5a: Body Paragraph 1 – Explain relevant economic theory fully.

Step 5b: Diagram 1 – Draw a diagram to supplement theory in Body Paragraph 1.

Step 5c: Real-world Example 1 – Introduce your real-world example below each key point made in the body paragraph. Where possible, label your diagram in the context of your real-world example. This shows examiners you are able to apply theories you’d learnt to a real-world context.*Unlike part (a), real-world examples are compulsory for part (b).

Step 6a: Body Paragraph 2 – Explain relevant economic theory fully.

[Optional] Step 6b: Diagram 2 – Draw a diagram to supplement theory in Body Paragraph 2.*Draw additional diagrams only where appropriate, only if they support your essay. Remember – every diagram means you must also spend time and word budget to explain the diagrams. This reduces your time spent on evaluation – consider this opportunity cost.

Step 6c: Real-world Example 2 – Introduce your real-world example below each key point made in the body paragraph. Where possible, label your diagram in the context of your real-world example. This shows examiners you are able to apply theories you’d learnt to a real-world context.*Unlike part (a), real-world examples are compulsory for part (b).

Step 7: Evaluation – Evaluate key concepts/policies via CLASPP in context of article’s information and data. *Evaluation must be (1) balanced and (2) effective.

Step 8: Conclusion – End off with a summary and a reasoned argument based on your response above.*Summary ≠ Reasoned argument ≠ Evaluation! Learn more in our commentary.

Having covered the broad framework of how to structure a Paper 1 essay, the subsequent sections revolve around specific steps in the framework.

Budgeting Your Time

You have 5min reading time + 1h 15min (75min) to answer 1 out of 3 questions.
Allocate more time to scoring most marks for part (a).
EconPrep’s recommendation:
- Reading – 5min reading time
- Writing Part (a) – 35min
- Writing Part (b) – 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 1 questions by:

Understanding recurring themes: Review multiple years of past papers to identify frequently tested topics. For instance, in microeconomics, market structures or elasticity often appear, while macroeconomics commonly includes AD-AS analysis.
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 75 minutes for one question (split into 30 minutes for Part (a) and 45 minutes for Part (b)).
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 (b). 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 1 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?
- Have I included real-world examples?
- Did I evaluate effectively in Part (b)?
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 examples.
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.
Highlight key economic concepts mentioned in the question, such as “price elasticity” or “fiscal policy.”
Look for qualifiers like “to what extent,” which signal the need for balanced evaluation.
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 (a), a well-drawn and thoroughly explained AD-AS diagram is critical.
When the question involves evaluation (Part b), 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. For example, when discussing fiscal policy, mention short-term and long-term impacts, stakeholders, and external constraints.
Breadth is also important when offering real-world examples to strengthen your arguments.

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

Managing Time During the Exam
- Allocate time wisely: Spend 5 minutes planning, 25 minutes on Part (a), and 40 minutes on Part (b). Use the last 5 minutes for review.
- If stuck, move on to the next part and return later to avoid wasting time.
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).
Incorporating Real-World Examples
- Regularly read reputable sources like The Economist or BBC Business to gather examples for topics like trade policies or market structures.
- Use concise examples that illustrate your points, avoiding excessive detail that doesn’t add value.

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.

Type of Paper 1 Questions

Microeconomics

Common Microeconomics topics for Paper 1 include market failure, market structures and demand and supply.

Macroeconomics

Common Macroeconomics topics for Paper 1 include AD-AS relationships, relationships between macroeconomic goals and demand/supply-side policies.

International Economics

Common International Economics (Global Economics) topics for Paper 1 include protectionist policies, currencies and exchange rates, and the relationship between economic growth and development.