IB Economics Paper 2

Paper 2 is the second examination you'll face in your IB Economics assessments. In this post, we’ll provide a thorough breakdown of IB Economics Paper 2, ensuring you are familiarised with the structure of the exam and know what type of questions to expect. 

IB Economics Paper 2

• At SL Paper 2 accounts for 40% of the student's final subject grade while for HL it accounts for 30% of the student's final grade. 
• Both SL and HL students have 1 hour 45 minutes to complete Paper 2.
• Students may score up to 40 marks. 
• Paper 2 is a data response paper based on all units of the syllabus.
• Both SL and HL students answer one out of two questions.
• Each of the two available questions will consist of around 8 shorter questions (1 – 4 marks) as well as one final 15-mark extended response question. 

A typical SL question may look the following way:

(a) (i) Define the term common pool resources indicated in bold in the text. (Text D, paragraph 5). [2]

(ii) Define the term Multidimensional Poverty Index (MPI) indicated in bold in the text (Text E, paragraph 1). [2]

(b) (i) Using information from Table 3, calculate Senegal's real GDP (in US$) in 2020. [2]

(ii) Using information from Table 5, calculate Senegal's current account balance (in US$) in 2018. [2]

(iii) Using information from Table 5, identify whether Senegal's balance of trade in goods and services is a surplus or a deficit. [1]

(c) Using a production possibilities curve (PPC) diagram, explain how the discovery of oil affected production possibilities in Senegal (Text D, paragraph 2). [4]

(d) Using an exchange rate diagram, explain how the change in the balance of trade in goods between 2010 and 2020 may have changed the exchange rate of the West African CFA franc (Table 3). [4]

(e) Using an international trade diagram, explain the likely effect on domestic producer surplus in Senegal of the tariff on rice imports (Text D, paragraph 4). [4]

(f) Using an externalities diagram, explain why the use of water by rice farmers may result in market failure in the rice market in Senegal (Text D, paragraph 5).[4] 

(g) Using information from the texts/data and your knowledge of economics, evaluate policies that could be used to reduce inequality in Senegal. [15]

How to succeed in Economics Paper 2?

To do well in Paper 2, it’s important to have a solid understanding of all the topics. The 1–4 mark questions don’t require much evaluation, so if you know the syllabus well, you should do fine. We suggest spending no more than 50 minutes on these questions, so you have at least 55 minutes for the final essay. Throughout the paper, make sure to refer to the provided data and materials, using them to support your answers.

The 15 marker generally requires more in-depth analysis, evaluation, and references to case studies. The last question is where you must engage in deeper critical thinking and provide well-developed arguments. To start strongly, it is important to begin your answer by defining all key terms in the question. Also, ensure your response is saturated with case studies and references to the provided material. You may also want to include diagrams in your response. Ensure that all your diagrams are drawn clearly, proportionally, and properly labeled. Lastly, it is crucial to remember to take a few minutes to plan your response before you start writing as this will ensure that your essay is well-structured, logical, and easy to follow.  

We hope you found this post helpful. For more useful materials associated with the IB check out the wide variety of IA, EE and TOK exemplars available at Clastify.