Comparative Guide to IB Economics and AP Economics

Course Structure, Content, and Exam Breakdown

Both IB and AP Economics courses provide a framework for understanding college or university-level introductory Economics courses. They are similar in design and share content, with IB being more in-depth and exploratory into the areas of Economic Development, reaching over two years of study. The assessment, however, is different in design.

The required skills for the AP Microeconomics and Macroeconomics exam are as follows:

Understanding the Structure and Timing of AP Multiple-Choice and Free-Response Sections

Both AP Exams are 2 hours and 10 minutes long and both have two sections. Section 1 includes 60 multiple-choice questions and section 2 has 3 "free-response" questions. A four-function calculator is allowed in both sections of the exam.

The multiple-choice (section 1) allows 70 minutes to complete 60 questions, so keeping pace is crucial. This section is also weighted as ⅔ of the final grade.

📝 Section 1: Multiple Choice

•60 questions in 70 minutes
•Weighted as ⅔ of final grade
•Calculator allowed

✍️ Section 2: Free Response

•3 questions in 60 minutes
•Weighted as ⅓ of final grade
•Calculator allowed

Content Distribution in AP Macroeconomics

While the approach to the IB exam is to cover the entire course content without placing specific emphasis on any one topic (except for paper 3, which is exclusive to HL material), the strategy for the AP Macroeconomics exam is notably different. In the AP exam, the multiple-choice questions are broken down as follows:

Units	Topics	AP Exam Weight (%)
Basic economics concepts	Scarcity, Opportunity Cost and the Production Possibilities Curve (PPC), Comparative Advantage and Gains from Trade, Demand, Supply, Market Equilibrium, Disequilibrium and Changes in Equilibrium	5-10
Economic Indicators and the Business Cycle	The Circular Flow and GDP, Limitations of GDP, Unemployment, Price Indices and Inflation, Costs of Inflation, Real v. Nominal GDP, Business Cycles	12-17
National Income and price determination	Aggregate Demand (AD), Multipliers, Short-Run Aggregate Supply (SRAS), Long-Run Aggregate Supply (LRAS), Equilibrium in the Aggregate Demand–Aggregate Supply (AD–AS) Model, Changes in the AD–AS Model in the Short Run, Long-Run Self-Adjustment, Fiscal Policy, Automatic Stabilizers	17-27
Financial Sectors	Financial Assets, Nominal v. Real Interest Rates, Definition, Measurement, and Functions of Money, Banking and the Expansion of the Money Supply, The Money Market, Monetary Policy, The Loanable Funds Market	18-23
Long Run consequences of Stabilization Policies	Fiscal and Monetary Policy Actions in the Short Run, The Phillips Curve, Money Growth and Inflation, Government Deficits and the National Debt, Crowding Out, Economic Growth, Public Policy and Economic Growth	20-30
Open Economy International Trade and Finance	Balance of Payments Accounts, Exchange Rates, The Foreign Exchange Market, Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market, Changes in the Foreign Exchange Market and Net Exports, Real Interest Rates and International Capital Flows	10-13

Content Distribution in AP Microeconomics

The breakdown for AP microeconomics multiple choice questions are as follows:

Units	Topics	AP Exam Weight (%)
Basic economics concepts	Scarcity, Resource allocation and economic systems, Production possibilities curve, Comparative Advantage and trade, Cost-benefit analysis, Marginal analysis and consumer choice	12-15
Supply and Demand	Demand, Supply, Price elasticity of demand, Price elasticity of supply, Other elasticities, Market equilibrium and consumer and producer surplus, Market Disequilibrium and Changes in Equilibrium, The effects of Government interventions in markets, International trade and public policy	20-25
Production, cost and the perfect competition model	The Production Function, Short-Run Production Costs, Long-Run Production Costs, Types of profit, Profit maximization, Firms short-run decisions to produce and long-run decisions to enter or exit a market, Perfect competition	22-25
Imperfect Competition	Introduction to imperfectly competitive market, monopoly, price discrimination, Monopolistic competition, Oligopoly and Game Theory	15-22
Factor markets	Introduction to factor markets, Changes in factor demand and factor supply, Profit-maximizing behavior in perfectly competitive factor markets, Monopsonistic markets	10-13
Market failure and the role of government	Socially efficient and inefficient market outcomes, Externalities, Public and private goods, The effect of government interventions in different market structures, inequalities	8-13

AP Free-Response Section (Section 2) Details

The "free-response" (section 2) consists of 3 questions (2 short and 1 long) assessing all four skill categories and is ⅓ of the final grade. You have 50 minutes to complete section 2.

Make assertions about economic concepts, principles, models, outcomes, and/or effects

Assessing skills in categories 1, 2, and 3 is 10-20% of the free response section.

Explain economic concepts, principles, models, outcomes and/or effects

Assessing skills in categories 1, 2, and 3 is 25–35% of the free-response section.

Perform numerical analysis

Assessing the ability to make assertions that require numerical analysis or to perform calculations. Skills in categories 1, 2, or 3 account for 10–25% of points in the free-response section.

Create graphs or visual representations

This task represents 30–50% of the overall points in the free-response section. It requires students to accurately diagram an economic model or market, demonstrate an understanding of a specific economic scenario via the diagram, and depict the impact of changes in the economic situation on the graph.

Question Weighting in Section 2

50% of section

10 marks

25% of section

5 marks

25% of section

5 marks

⏱️

Reading Time: The AP exams have a 10-minute reading time for section 2, while IB exams all have a 5-minute reading time at the beginning of each exam session.

Insights into the Structure and Content of IB Economics Exams

The IB course covers more content and includes Economic Development. For this reason, it is not advisable for AP students to sit in the IB exam. However, an IB student can sit the AP microeconomics and macroeconomics exams.

The required skills for the IB Economics Exams (HL & SL) are based on the following assessment objectives (Similarities can be seen between the two courses):

Assessment Objective	Paper 1 – SL and HL		Paper 2 – SL and HL	Paper 3 – HL only	Internal Assessment SL and HL
Part	a	b
AO1 – Knowledge and understanding	Yes	Yes	Yes	Yes	Yes
AO2 – Application and analysis	Yes	Yes	Yes	Yes	Yes
AO3 – Synthesis and evaluation	No	Yes	Yes	Yes	Yes
AO4 – Use and application of appropriate skills	Yes	Yes	Yes	Yes	Yes

Note: Calculators are permitted for papers 2 and 3 only. Only HL students will write paper 3, usually right after Paper 1 or 2. (in 2023, it follows HL Paper 1).

Paper 11 hour 15 minutes

In Paper 1, you will have 1 hour and 15 minutes to complete a single question. This question consists of two parts, namely parts a and b. You will have a choice of three questions, each focusing on one of the syllabus units: Microeconomics, Macroeconomics, and The Global Economy. From these options, you will select and respond to one question that aligns with your preparation and interests. Part A is out of 10 marks and doesn't require AO3, while part b is 15 marks and will require synthesis and evaluation along with the use of a real-world example.

Paper 21 hour 45 minutes

Paper 2 is 1 hr and 45 mins and requires the candidate to answer 1 of the 2 case studies presented. The case is marked out of 40; 15 marks are from part g, an essay question requiring students to analyze the case for synthesis and evaluation (A04). Fully labeled diagrams are heavily assessed in this paper with questions c, d, e, and f.

Paper 31 hour 45 minutes • HL Only

Paper 3 is 1hr and 45 mins and requires the candidate to answer both (2) questions fully. Each question is 30 marks, and 10 of these marks require a recommendation where the candidate presents an advisable course of action with appropriate supporting evidence/reasoning concerning a given situation, problem, or issue. Two compulsory questions make paper 3 out of 60 marks total.

While all assessment objectives are met for each paper, Paper 1 is distinctly more of a short answer/essay exam, while Papers 2 and 3 focus more on calculations and diagrams (AO4). Each exam, however, has an extended writing task; both questions a) and b) on Paper 1 are in essay format, while question g) on Paper 2 is in essay format. These essay-like questions have standard assessment criteria that should be reviewed. Nevertheless, there are similarities in format.

About the Author

Jon

Jon is the Coordinator of Economics at a leading IB school, where he has successfully guided hundreds of students through the curriculum. With extensive experience tutoring both AP and IB students from across the globe, he is a senior Economics specialist at Hack Your Course, committed to helping students achieve their academic goals.

Frequently Asked Questions: AP vs. IB Economics

Course Structure & Content

What is the main content difference between AP and IB Economics?+

Both cover micro and macro foundations, but IB Economics also has a required "Global Economy" strand (including development) and emphasizes written evaluation. IB is commonly taught over two years, while AP Micro and AP Macro are usually taught as separate one-semester or one-year courses.

Can an AP student take the IB Economics exam?+

Generally, no. IB exams are administered through an IB World School and registration is handled by the school; students cannot self-register. You must be enrolled in the IB course at an authorized school to sit the exams.

Which topics are most important for AP Macroeconomics?+

The heaviest weighting goes to "Long Run consequences of Stabilization Policies" (20-30%) and "National Income and Price Determination" (17-27%). You must master fiscal/monetary policy and AD/AS models.

Does IB Economics have Multiple Choice questions?+

No. There is no multiple-choice component in the final IB papers (Paper 1, 2, or 3). In contrast, the AP assessment is approximately 66% Multiple Choice.

What is unique about IB HL Economics?+

HL (Higher Level) students take an additional Paper 3. This exam includes quantitative and diagram work plus a longer policy response where you may be asked to recommend a specific course of action.

How long are the courses?+

IB Economics is commonly taught as a two-year comprehensive program within the Diploma. AP Microeconomics and AP Macroeconomics are often taught as separate semester-long courses, though schools vary.

What is "Economic Development"?+

This is a key strand within the IB "Global Economy" unit that explores how countries grow and improve living standards. It distinguishes the IB syllabus from the standard AP curriculum.

Does AP cover International Trade?+

Yes. AP Macro has a dedicated "Open Economy-International Trade and Finance" unit (10-13%). AP Micro also includes "International Trade and Public Policy" as part of its course topics.

Assessment & Exam Strategy

Can I use a calculator in the exams?+

AP: Yes, a four-function calculator is allowed for both sections.
IB: Calculators are permitted ONLY for Paper 2 and Paper 3, not Paper 1.

How is the AP Exam graded?+

The AP exam consists of a Multiple Choice section (66.65%) and a Free-Response section (33.35%). Speed and accuracy in the MCQs are crucial for a high score.

Do I need to draw graphs?+

Yes! In the AP Free-Response section, roughly 30-50% of points come from creating graphs or visual representations. IB Paper 2 also heavily assesses fully labeled diagrams.

What is the "Free-Response" section in AP?+

It consists of 3 questions (1 long, 2 short) that test your ability to assert, explain, and calculate. You have 50 minutes (plus 10 mins reading time) to complete it.

What is IB Paper 1?+

Paper 1 is an essay exam (1 hour 15 mins). You choose one question from three options (Micro, Macro, or Global Economy), each containing Part A (Theory) and Part B (Evaluation/Real-world example).

Is there reading time before the exams?+

AP: 10 minutes reading time for Section 2 (Free Response).
IB: 5 minutes reading time at the start of each exam session.

What is the hardest part of IB Paper 2?+

Paper 2's Part (g) is the 15-mark essay question. It is the highest-value item and typically requires synthesis and evaluation of the case study using AO3 skills (not just theory).

Which exam requires more math?+

Both require numerical analysis. AP Econ free-response includes a meaningful chunk of calculations (e.g., 15-30% in AP Micro). IB uses calculations most heavily in Paper 2 and (for HL) Paper 3.

Can HYC tutors prepare me for both?+

Yes. Our Economics tutors are experienced with both formats. We tailor sessions to the specific exam structure, whether it's AP MCQ/FRQ strategy or the IB Paper 1/2/3 structure and IA support.

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