Economic Skills You Need To Demonstrate (DP IB Economics): Revision Note

Introduction to the assessment objectives

• IB Economics assesses four broad skills, known as assessment objectives (AOs)

• These skills are signalled in exam questions through command terms (such as 'define', 'analyse', 'evaluate' or 'recommend')

• Understanding how these skills work together will help you interpret questions accurately and avoid writing the wrong type of answer

AO1: Knowledge and understanding

• AO1 is about showing that you know and understand Economics

• In exams, this means you should be able to:

  • define economic terms accurately

  • explain economic concepts and theories clearly

  • use correct economic terminology throughout your answer

• AO1 is most visible in short questions (such as definitions or brief explanations), but it underpins all answers

• Without accurate knowledge, examiners cannot reward analysis or evaluation

Typical command terms linked to AO1

• Define

• List

• State

• Describe

• Outline

AO2: Application and analysis

• AO2 focuses on your ability to use economics in context

• This means you must be able to:

  • apply economic theory to real-world situations

  • use information from texts, tables, diagrams or data

  • explain how economic concepts operate in the specific situation described

• AO2 is especially important in Paper 2 and Paper 3, where answers must be clearly linked to the stimulus material provided

  • Correct theory that is not applied to the context cannot score highly

Typical command terms linked to AO2

• Explain

• Analyse

• Comment on

• Distinguish

• Apply

AO3: Synthesis and evaluation

• AO3 is about thinking like an economist: weighing up arguments and reaching justified conclusions

• This involves:

  • building clear economic arguments

  • using theory and evidence together

  • considering different perspectives or outcomes

  • making balanced judgments

• AO3 is essential in higher-mark questions, such as Paper 1 (15 marks), Paper 2 part (g), and the Paper 3 policy recommendation

Typical command terms linked to AO3

• Discuss

• Evaluate

• Examine

• To what extent

• Justify

• Recommend

AO4: Use and application of skills

• AO4 refers to the technical skills used in Economics

• This includes your ability to:

  • draw and label diagrams accurately

  • carry out calculations correctly

  • interpret numerical and graphical data

  • organise your answers clearly and logically

• AO4 is particularly important in Paper 2 and Paper 3, but diagram skills and clear written structure are relevant across all papers

Typical command terms linked to AO4

• Calculate

• Draw

• Sketch

• Label

• Plot

• Derive

• Determine

• Show

How these skills work together in exams

• Most IB Economics questions assess more than one skill at the same time

  • For example, a 15-mark question may require AO1 (knowledge), AO2 (application), AO3 (evaluation), and AO4 (diagrams)

• Command terms tell you which skill to prioritise, but strong answers usually combine several skills effectively

• Understanding this skills framework will help you decide:

  • how much to write

  • whether to include diagrams or calculations

  • and how much evaluation is required

Command terms (how questions signal what to do)

• Command terms are classified according to the AO levels

• Cognitive demand progresses from AO1 → AO3, while AO4 command terms are skills-based (for example calculations, diagrams, and data handling)

How to use this in exams

• Most exam questions assess more than one AO at the same time

• Command terms indicate the dominant skill being targeted, so students should use them to decide how much explanation, data use, diagram work, and evaluation is required

• AO1 questions require precision and accuracy (definitions, brief descriptions).

• AO2 questions require you to apply theory to a context or stimulus AND develop clear analytical links

• AO3 questions require you to build an argument AND make balanced judgments (evaluation must be supported by analysis)

• AO4 questions require technical skills (accurate diagrams, correct calculations, and correct interpretation/handling of data)