The 15-mark essays in IB Economics Paper 1 require a combination of clear structure, detailed analysis, and strong evaluation to score full marks. These essays test your ability to apply economic theory, draw and explain diagrams, and critically evaluate policies or concepts. In this guide, we’ll provide a step-by-step structure, examples, and tips to help you ace these high-stakes questions.
1. Understanding the 15-Mark Question
What’s Expected?
Analysis (10 marks): Clear, logical explanation of economic concepts and their real-world application.
Evaluation (5 marks): Balanced discussion of the pros, cons, limitations, and alternatives.
Typical Question Format
These questions often ask you to:
Discuss a specific policy or concept (e.g., “Evaluate the effectiveness of subsidies”).
Compare two concepts (e.g., “Compare and contrast monetary and fiscal policy”).
Analyze a real-world issue using economic theory (e.g., “Examine the causes and consequences of inflation”).
2. The Perfect Essay Structure
Here’s a tried-and-tested structure to tackle any 15-mark question:
1. Introduction (2–3 sentences)
Define Key Terms: Start by defining the economic terms or concepts in the question.
State Your Approach: Outline what your essay will cover.
Example:"Market failure occurs when resources are allocated inefficiently in a free market, leading to a loss of social welfare. This essay will analyze how subsidies address market failure caused by under-consumption of merit goods, using diagrams and real-world examples to evaluate their effectiveness."
2. Explanation and Analysis (4–5 paragraphs)
Explain the Theory (1 paragraph):
Provide a clear explanation of the relevant economic theory.
Include a diagram and refer to it explicitly.
Example:"Subsidies reduce the cost of production for firms, shifting the supply curve from S1 to S2, as shown in Figure 1. This decreases equilibrium price from P1 to P2 and increases quantity consumed from Q1 to Q2, reducing under-consumption of merit goods."
Apply to Real-World Examples (1–2 paragraphs):
Relate the theory to specific examples.
Use recent data or policies to strengthen your analysis.
Example:"In Germany, subsidies for solar panels increased adoption by 40% between 2010 and 2020, reducing reliance on fossil fuels and mitigating environmental market failure."
Analyze the Impact (1–2 paragraphs):
Discuss the cause-and-effect relationships in detail.
Show how the policy addresses the issue and its broader implications.
Example:"By reducing the price of solar panels, subsidies encourage greater consumption, leading to positive externalities such as reduced greenhouse gas emissions and lower long-term energy costs."
3. Evaluation (2–3 paragraphs)
Discuss Pros and Cons:
Highlight the advantages and disadvantages of the concept or policy.
Use real-world examples to support your points.
Example:"While subsidies promote the consumption of merit goods, they have a high opportunity cost, as funds diverted to subsidies could be used for healthcare or education. Additionally, producers may become reliant on subsidies, reducing efficiency in the long term."
Short-Term vs. Long-Term Impacts:
Examine immediate effects versus potential future outcomes.
Example:"In the short term, subsidies effectively address market failure by reducing prices. However, in the long term, governments may face budget constraints, limiting their ability to sustain such policies."
Suggest Alternatives:
Propose complementary or alternative policies and assess their effectiveness.
Example:"Alternatives such as taxing demerit goods (e.g., carbon taxes) could complement subsidies, generating revenue to offset their costs while further addressing environmental issues."
4. Conclusion (2–3 sentences)
Summarize your main points.
Provide a balanced judgment in response to the question.
Example:"In conclusion, subsidies are an effective tool for addressing market failure caused by under-consumption of merit goods. However, their long-term sustainability depends on government budget constraints and the implementation of complementary policies such as taxation or public awareness campaigns."
3. Common Mistakes and How to Avoid Them
1. Poor Time Management
Spending too much time on one section (e.g., explanation) and rushing through evaluation.
Solution: Allocate 25 minutes to each 15-mark question:
Introduction: 3 minutes
Explanation and Analysis: 15 minutes
Evaluation: 5 minutes
Conclusion: 2 minutes
2. Weak Diagrams
Missing, irrelevant, or poorly labeled diagrams.
Solution: Practice drawing key diagrams (e.g., supply and demand, AD-AS) and ensure they are directly relevant to the question.
3. Superficial Evaluation
Listing pros and cons without depth or explanation.
Solution: Develop each evaluation point fully, using real-world examples and considering multiple perspectives.
4. Lack of Real-World Examples
Providing vague or theoretical answers without evidence.
Solution: Prepare a bank of recent examples for common topics (e.g., taxes, subsidies, inflation) before the exam.
4. Practice Question and Sample Outline
Question: “Evaluate the effectiveness of fiscal policy in addressing unemployment.”
Answer Outline:
Introduction:
Define fiscal policy and its objectives.
State your focus: analyzing how fiscal policy reduces unemployment.
Explanation and Analysis:
Theory: Explain how expansionary fiscal policy (e.g., government spending, tax cuts) increases AD and reduces unemployment.
Diagram: AD-AS model showing an outward shift of the AD curve.
Real-World Example: The US stimulus package during the COVID-19 pandemic reduced unemployment from 8% to 6% within a year.
Analysis: Show how increased government spending creates jobs in sectors like infrastructure and healthcare.
Evaluation:
Pros: Effectively boosts demand and employment during recessions.
Cons: May lead to budget deficits and crowding out of private investment.
Short-Term vs. Long-Term: Immediate job creation vs. long-term debt sustainability.
Alternatives: Monetary policy or supply-side reforms as complementary solutions.
Conclusion:
Fiscal policy is effective in the short term but requires careful management to avoid long-term issues like inflation and debt.
5. Final Tips for Success
Plan Before You Write:
Spend 2–3 minutes outlining your essay to ensure clarity and coherence.
Practice with Past Papers:
Focus on timing and structuring your answers.
Memorize Key Diagrams:
Ensure you can draw and explain diagrams for subsidies, externalities, AD-AS, and market structures.
Prepare Real-World Examples:
Keep examples updated and categorize them by topic for quick reference during the exam.
Conclusion
Writing a high-scoring 15-mark essay in IB Economics requires a combination of clear structure, strong analysis, and balanced evaluation. By following this guide, practicing regularly, and incorporating real-world examples, you’ll be well-prepared to tackle these questions with confidence.