How to Solve: IB Economics – 10-Mark (Evaluation) Questions

How to Solve: IB Economics – 10-Mark (Evaluation) Questions

Structure & Command Words

Introduction

"Mastering the 10-mark evaluation question in IB Economics can add 10% to your final exam score—enough to push you from a 6 to a 7. This is where you prove you can think like an economist, not just memorise definitions."

What You Need To Know First

1. Basic economic theories (e.g., supply/demand, market failure, government intervention).
2. Command terms (e.g., "evaluate," "to what extent," "discuss").
3. Real-world examples (e.g., sugar taxes, minimum wage, carbon trading).

KEY TERMS & FORMULAS

Key Terms

Formulas (Given on Exam Sheet)

• Price Elasticity of Demand (PED): %ΔQd / %ΔP
• Income Elasticity of Demand (YED): %ΔQd / %ΔY
• Cross Elasticity of Demand (XED): %ΔQd of Good A / %ΔP of Good B

MEMORISE THIS: The CLASPP evaluation framework (see Step 2).

Step-by-Step Method

Step 1: Decode the Command Word

• "Evaluate" → Weigh pros and cons, then give a justified conclusion.
• "To what extent" → Agree/disagree with a statement, then evaluate.
• "Discuss" → Present arguments for and against, then conclude.

Step 2: Use the CLASPP Framework

Conclusions (state your position early) Long-run vs. Short-run effects Assumptions (what must be true for this to work?) Stakeholders (who wins/loses?) Priorities (what’s most important—efficiency, equity, growth?) Problems (unintended consequences, e.g., black markets, inefficiencies)

Step 3: Structure Your Answer (4-Paragraph Template)

1. Introduction (1-2 sentences)
2. Define key terms.

3. State your position (e.g., "This policy is effective to a large extent, but has limitations").

4. Argument 1 (Pros)

5. Theory + real-world example.

6. Use data if given.

7. Argument 2 (Cons)

8. Theory + real-world example.

9. Use data if given.

10. Evaluation & Conclusion

11. Weigh both sides.
12. Give a final judgment (e.g., "Overall, the policy is effective, but only if X condition is met").

Step 4: Add Depth with Evaluation Techniques

• Magnitude: How big is the effect? (e.g., "The tax reduces demand by 5%, but this is small compared to the 20% price increase.")
• Time: Short-run vs. long-run (e.g., "In the short run, firms may struggle, but in the long run, they adapt.")
• Stakeholders: Who benefits/hurts? (e.g., "Consumers pay higher prices, but workers gain job security.")
• Assumptions: What if they’re wrong? (e.g., "This assumes perfect competition, but real markets have oligopolies.")

Step 5: Write Clearly & Concisely

• No fluff. Every sentence must add value.
• Use connectives: "However," "On the other hand," "This suggests that..."
• Link back to the question: "This shows that the policy is effective to a large extent because..."

Worked Examples

Example 1 – Basic (Evaluate a Sugar Tax)

Question: "Evaluate the effectiveness of a sugar tax in reducing obesity."

Step 1: Command word = "Evaluate" → Weigh pros and cons, then conclude.

Step 2: CLASPP Framework - Conclusion: The tax is somewhat effective but has limitations. - Long-run: Consumers may switch to other unhealthy foods. - Assumptions: Consumers respond to price changes (PED > 1). - Stakeholders: Consumers (higher prices), government (revenue), firms (lower sales). - Priorities: Health vs. consumer freedom. - Problems: Black markets, regressive tax (hurts poor more).

Step 3: Structured Answer 1. Introduction: A sugar tax is an indirect tax on sugary drinks to reduce obesity. While it can be effective, its impact is limited by consumer behaviour and unintended consequences. 2. Pros:
- Theory: Tax increases price → lower demand (law of demand).
- Example: Mexico’s 10% sugar tax reduced sales by 12% in Year 1. 3. Cons:
- Theory: If PED < 1, demand doesn’t fall much.
- Example: UK sugar tax had minimal effect on obesity rates.
- Problem: Consumers switch to cheaper, untaxed unhealthy foods. 4. Evaluation & Conclusion:
- The tax works best if PED > 1 and alternatives are healthy.
- Overall, it’s partially effective but needs complementary policies (e.g., education).

What we did and why: - Used CLASPP to cover all angles. - Gave real-world data to support arguments. - Concluded with a balanced judgment.

Example 2 – Medium (To What Extent is Minimum Wage Effective?)

Question: "To what extent is a minimum wage an effective policy for reducing poverty?"

Step 1: Command word = "To what extent" → Agree/disagree, then evaluate.

Step 2: CLASPP Framework - Conclusion: Effective to some extent, but not a complete solution. - Long-run: Firms may automate, reducing jobs. - Assumptions: Workers spend extra income (not saved). - Stakeholders: Low-wage workers (higher pay), firms (higher costs), unemployed (fewer jobs). - Priorities: Equity vs. efficiency. - Problems: Unemployment, inflation, regional differences.

Step 3: Structured Answer 1. Introduction: A minimum wage sets a legal floor on wages to reduce poverty. While it helps some workers, its effectiveness depends on economic conditions. 2. Pros:
- Theory: Higher wages → higher disposable income → reduced poverty.
- Example: UK minimum wage lifted 1.6 million out of poverty (2016-2020). 3. Cons:
- Theory: If wage > equilibrium, firms hire fewer workers (unemployment).
- Example: US fast-food jobs fell 1.5% after minimum wage hikes.
- Problem: Only helps employed workers, not the unemployed. 4. Evaluation & Conclusion:
- Effective in tight labour markets (low unemployment).
- Less effective in recessions or for part-time workers.
- Overall, it’s effective to a moderate extent but needs welfare support.

What we did and why: - Compared theory (unemployment risk) with real-world data. - Evaluated based on economic conditions (tight vs. loose labour market). - Concluded with a nuanced judgment.

Example 3 – Exam-Style (Disguised Question)

Question: "‘Government subsidies for electric cars are the best way to reduce carbon emissions.’ To what extent do you agree?"

Step 1: Command word = "To what extent" → Agree/disagree, then evaluate.

Step 2: CLASPP Framework - Conclusion: Agree to a large extent, but other policies are needed. - Long-run: Technology improves, reducing costs. - Assumptions: Consumers respond to subsidies (PED > 1). - Stakeholders: Car buyers (lower prices), taxpayers (funding), fossil fuel firms (lower demand). - Priorities: Environmental goals vs. fiscal responsibility. - Problems: Free-rider problem, opportunity cost (could fund renewables instead).

Step 3: Structured Answer 1. Introduction: Subsidies lower the price of electric cars, encouraging adoption. While effective, they are not the only solution. 2. Pros:
- Theory: Subsidy → lower price → higher demand (law of demand).
- Example: Norway’s subsidies led to 80% EV adoption. 3. Cons:
- Theory: If PED < 1, demand doesn’t rise much.
- Example: US EV subsidies had limited impact in rural areas (low charging infrastructure).
- Problem: Opportunity cost—could fund public transport instead. 4. Evaluation & Conclusion:
- Most effective when combined with charging infrastructure and carbon taxes.
- Overall, I agree to a large extent, but subsidies alone are insufficient.

What we did and why: - Used Norway (success) vs. US (limited impact) as examples. - Evaluated based on infrastructure and PED. - Concluded with a balanced, justified stance.

Common Mistakes

Exam Traps

1-Minute Recap (Night Before the Exam)

"Here’s how to crush the 10-mark evaluation question in 60 seconds: 1. Decode the command word—‘Evaluate’ means weigh pros and cons, then conclude. 2. Use CLASPP—Conclusions, Long-run, Assumptions, Stakeholders, Priorities, Problems. 3. Structure your answer—Intro, Pros, Cons, Evaluation + Conclusion. 4. Add depth—Talk about magnitude, time, stakeholders, and assumptions. 5. Avoid traps—Don’t just describe, don’t ignore data, and always conclude. Real-world examples are your best friend—use them! Now go get that 7."