How to write a 10 mark answer for paper 3 IB Economics

There is very little time to write the 10 mark response for paper 3 IB Economics.

But how do you write a 10 mark response in under 20 minutes?

Below I have written my model answer to a 10 mark paper 3 question.

There is also advice on structure and timing.

For more IB Economics tips, check out the link below:

Criteria

The key criteria to do well on the 10 mark question for paper 3 are:

• Recommend and completely explain one policy
• Analysis
• Terminology
• Use information from text and data to support analysis and evaluation
• Balanced and effective evaluation and synthesis (a conclusion)

Sample question

The global economy has witnessed rising food prices in 2022. [For more information on food prices in 2022 globally, see the link here].

For the purpose of this question, consider the fictional country Vizoa, a developing economy where wheat is very important for the typical diet. The price elasticity of demand for wheat is -0.60 in Vizoa.

Food prices have risen 20% in 2022 in Vizoa. This particularly hits the poorest income groups the hardest. Food spending makes up 40% of spending for the poorest 10% of households in terms of income, but only 10% of spending for the richest 10% of households.

Wheat is a key input for products such as bread, pasta and pastries. But, depending on the variety of wheat, it can take over half a year to grow.

Using the data and your knowledge of economics, recommend a policy that the Vizoan government could use to control rising food prices (10 marks).

Short plan

Here is a quick plan for the answer:

• Maximum price
• Supply and demand to show effect of maximum price
• Effect on input prices falling making other foods cheaper
• Evaluation – response of suppliers and black market
• Conclusion – successful given the PED and PES*

Sample model answer

I recommend the Vizoan government sets maximum price on grains, including wheat and barley. A maximum price sets a legal limit on how high the price can go, to prevent the price rising above that particular limit.

The maximum price is set at p1, below the free market equilibrium price p. So the price of grains falls from p to p1. This benefits consumers who can buy the good at a lower price. Each consumer who can still buy grains pays (p-p1) less for each unit of grain. So this reduces the extent of poverty in Vizoa, as particularly for the poorest income group, food takes up “40% of spending” as in the extract.

Grains are also an input into producing other products. The extract states wheat is used as an input for “bread, pasta and pastries”. So a maximum price on grains reduces business costs, so there is an increase (shift right) in supply of goods containing grain. This reduces the price of these grain-containing goods, further reducing prices and increasing consumer welfare.

However the maximum price may lead to a shortage of grains. Consider the diagram for the market for grains again. At price p1, demand exceeds supply by q1-q2. This means that only quantity q2 is sold rather than quantity q. This means the maximum price creates a welfare loss, which is the green shaded area. As a result, consumers may look to unofficial markets to buy grain, where the price is higher. These illegal actions would undermine the price cap, making it less effective as the price would still effectively be at p.

The maximum price on grains is likely to be effective in lowering prices not just for grains but food more broadly. But the overall effectiveness depends on the extent of any shortage. The price elasticity of demand (PED) for wheat is inelastic because it is a necessity, with the extract confirming a PED of -0.6. The price elasticity of supply for wheat is likely to be inelastic in the short run as it takes time to produce wheat, “over half a year” for some varieties according to the extract. Therefore the size of any shortage is likely to be small.

Commentary

This answer does everything to achieve a top answer.

Specifically the answer selects one policy, analyses it using a diagram, evaluates and concludes.

Therefore the answer is likely to score full marks or close to it.

Several other points are possible. This includes market power or the level of the maximum price. You could even select other policies like subsidies.

Common mistakes

Key errors I typically see include:

• Overwriting – remember there is an opportunity cost to writing extra for a 10 mark question. You forgo time spent elsewhere in the paper.
• Not recommending a policy or recommending multiple policies.
• Not referring to the data or extracts given.

Related questions

How much time should you spend on a 10 mark question for paper 3 IB Economics?

Each 10 mark question is one-sixth of the total marks available for paper 3.

For paper three you get a total time of 1 hour 45 minutes.

Proportionally that means you should spend 17 minutes, 30 seconds on each 10 mark question.

That’s not much time at all. So you cannot write an extended essay like in paper 1.

If you are quick with the shorter answer questions, you can spend a little more time here (so you can take 20 minutes per 10 mark question). But do not neglect the other questions.

How should you structure for the 10 mark question for paper 3 IB Economics?

Your answer should have four key sections:

• Definitions and policy recommendation.
• Analysis. Include a diagram where appropriate.
• Evaluation
• Conclusion

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