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100+ Free IB Economics HL Practice Questions

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2026 Statistics

Key Facts: IB Economics HL Exam

1-7

IB grading scale per subject

IBO Diploma Programme

20/30/30/20

Paper 1 / Paper 2 / Paper 3 / IA weighting (%)

IB Economics guide

240 hours

Higher Level guided learning hours

IBO subject brief

100

Free practice questions here

OpenExamPrep

IB Economics HL is graded 1-7 with Paper 1 worth 20%, Paper 2 worth 30%, Paper 3 (HL-only policy paper) worth 30%, and the Internal Assessment portfolio worth 20%. HL covers all SL content plus theory of the firm, Phillips curve, multiplier, Marshall-Lerner, and Paper 3 policy analysis.

Sample IB Economics HL Practice Questions

Try these sample questions to test your IB Economics HL exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following is NOT one of the nine key concepts of the IB Economics syllabus?
A.Profit
B.Scarcity
C.Sustainability
D.Interdependence
Explanation: The nine key concepts are scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, and intervention. Profit is a microeconomic outcome, not one of the syllabus key concepts.
2Behavioural economics challenges the assumption of which classical concept?
A.Rational economic agents
B.Diminishing returns
C.Comparative advantage
D.Market clearing
Explanation: Behavioural economics rejects the assumption of perfectly rational, utility-maximising agents and instead studies bounded rationality, biases, and heuristics that distort real decisions.
3Who coined the term 'nudge' and developed nudge theory?
A.Thaler and Sunstein
B.Kahneman and Tversky
C.Akerlof and Stiglitz
D.Coase and Friedman
Explanation: Richard Thaler and Cass Sunstein developed nudge theory in their 2008 book Nudge. A nudge is a small change in choice architecture that influences behaviour without restricting options.
4Bounded rationality refers to the idea that decision-makers:
A.Have limited cognitive capacity, time, and information
B.Always maximise utility precisely
C.Have unlimited computational power
D.Make purely random choices
Explanation: Herbert Simon's bounded rationality says agents make reasonable rather than optimal choices because their cognitive ability, information, and time are limited, leading to satisficing behaviour.
5Placing fruit at eye level in a school canteen to increase healthy eating is an example of:
A.Choice architecture
B.Price ceiling
C.Indirect tax
D.Negative externality
Explanation: Choice architecture is the design of how choices are presented to influence decisions. Rearranging fruit placement is a classic nudge that changes default behaviour without restricting choice.
6Confirmation bias is best described as the tendency to:
A.Seek information that supports existing beliefs
B.Overweight rare events
C.Anchor on the first number heard
D.Imitate the crowd
Explanation: Confirmation bias is the tendency to search for, interpret, and remember information that confirms one's prior beliefs while underweighting contradictory evidence.
7A production possibility curve (PPC) shifting outward illustrates which key concept?
A.Change (economic growth)
B.Scarcity
C.Equity
D.Intervention
Explanation: An outward PPC shift means the economy can produce more of both goods, reflecting economic growth — directly linked to the key concept of change.
8A 'positive' economic statement is one that:
A.Can be tested against the facts
B.Recommends what ought to be done
C.Always supports free markets
D.Is based on ethical judgement
Explanation: Positive economics deals with statements that can be tested or falsified using evidence. Normative statements involve value judgements about what ought to happen.
9Setting organ donation to 'opt-out' rather than 'opt-in' to raise donor rates exploits:
A.Default bias
B.Comparative advantage
C.The Laffer curve
D.The income effect
Explanation: Default bias is the tendency to stick with pre-set options. Opt-out defaults dramatically increase organ donation registration — a famous nudge documented across European systems.
10Which of the following best demonstrates the key concept of efficiency?
A.Producing at the lowest possible cost per unit
B.Distributing income equally
C.Reducing carbon emissions
D.Reducing inflation to zero
Explanation: Productive efficiency is producing at the minimum average cost. Efficiency is one of the nine key concepts and is achieved when resources are used to maximum effect.

About the IB Economics HL Exam

IB Economics HL is a Higher Level subject in the IB Diploma Programme assessed through three written papers and an internal assessment portfolio. The current syllabus (first exams 2022) is organised around nine key concepts and four units covering introduction to economics, microeconomics, macroeconomics, and the global economy, with HL students adding theory of the firm, Phillips curve, multiplier, terms of trade, and Marshall-Lerner content plus a quantitative policy-focused Paper 3.

Questions

100 scored questions

Time Limit

4 hours 45 minutes total written exam time across 3 papers

Passing Score

Grade 4 is widely accepted as a pass; full DP requires 24+ points total (1-7 scale per subject)

Exam Fee

Set by school; IBO subject registration fee approx $119 USD per exam (International Baccalaureate Organization (IBO))

IB Economics HL Exam Content Outline

10%

Introduction to economics

Nine key concepts (scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, intervention), positive vs normative economics, PPC, behavioural economics including biases, bounded rationality, choice architecture, and nudge theory (Thaler and Sunstein)

30%

Microeconomics (HL)

Demand and supply, PED/PES/YED/XED, market failure, plus HL theory of the firm: utility and indifference curves, costs (FC, VC, TC, AC, MC) short-run vs long-run, revenue (TR, AR, MR), profit maximisation MR=MC, perfect competition, monopoly with price discrimination 1st/2nd/3rd degree, monopolistic competition, oligopoly with kinked demand, game theory, Nash equilibrium and prisoner's dilemma

30%

Macroeconomics (HL)

Circular flow with leakages and injections, AD/AS, business cycle, unemployment, inflation, plus HL Phillips curve (SR vs LR, NAIRU, expectations-augmented), multiplier 1/(1-MPC) and accelerator, fiscal multiplier with MPC/MPS/MPM/MPT, monetary policy and quantitative easing, Laffer curve, interventionist vs market-based supply-side policies

25%

The global economy (HL)

Gains from trade, comparative advantage, protectionism (tariffs, quotas, subsidies) with consumer and producer surplus, exchange rate regimes, balance of payments, plus HL terms of trade calculation, Marshall-Lerner condition |PEDx+PEDm|>1, J-curve, economic integration, economic development strategies and Sustainable Development Goals

5%

HL Paper 3 policy analysis

Selecting appropriate policies for given scenarios (demand vs supply-side problems), evaluating fiscal, monetary, supply-side, and trade policy combinations, plus quantitative manipulation of data including multiplier, surplus, and exchange rate calculations

How to Pass the IB Economics HL Exam

What You Need to Know

  • Passing score: Grade 4 is widely accepted as a pass; full DP requires 24+ points total (1-7 scale per subject)
  • Exam length: 100 questions
  • Time limit: 4 hours 45 minutes total written exam time across 3 papers
  • Exam fee: Set by school; IBO subject registration fee approx $119 USD per exam

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

IB Economics HL Study Tips from Top Performers

1Practice diagrams every day — IB Economics rewards correctly labelled, titled, and explained diagrams on every Paper 1 essay and Paper 2 data response
2Memorise the nine key concepts and weave them into evaluation paragraphs — examiners explicitly look for key-concept integration
3Drill Paper 3 calculations weekly: multiplier 1/(1-MPC+MPM+MPT), terms of trade, PED/YED/XED, monopoly profit, exchange rate revaluation
4Use real-world examples from news articles in every essay — vague answers without real examples cap at the mid-mark band

Frequently Asked Questions

What is the format of IB Economics HL?

IB Economics HL has Paper 1 (1h 15min, extended response, 20%), Paper 2 (1h 45min, data response, 30%), Paper 3 (1h 45min, HL-only policy paper with quantitative and policy questions, 30%), plus an Internal Assessment portfolio of three 800-word commentaries on news articles worth 20%.

When are IB Economics exams taken?

IB exams are sat in two annual sessions: May (Northern Hemisphere schools) and November (Southern Hemisphere schools). Results are released in early July and early January respectively.

How is IB Economics HL graded?

Each IB subject is graded on a 1-7 scale, where 7 is the highest. Grade 4 is widely treated as a pass, and the full Diploma requires at least 24 points across six subjects plus core requirements.

What is the difference between IB Economics SL and HL?

HL covers all SL content plus theory of the firm (costs, revenue, perfect competition, monopoly, oligopoly, game theory), Phillips curve, multiplier and accelerator, terms of trade, and Marshall-Lerner. HL also sits Paper 3, a 1 hour 45 minute policy paper with quantitative analysis.