IB Economics Paper 3 Policy Paper Technique (HL)

Paper 3 tests policy technique through two compulsory structured questions, each worth 15 marks, combining data-response calculations with an extended written policy evaluation. You're given a stimulus (article, data table or diagram) and must calculate values, then recommend and evaluate a real government policy using economic theory.

Each Paper 3 question is worth 15 marks, split across sub-parts: small calculation parts (2-6 marks each) and one larger extended-response part worth 8-10 marks that asks you to evaluate a policy. The extended part carries the most weight, so don't rush it to save time for calculations.

The command terms 'calculate', 'explain', 'evaluate' and 'recommend' dominate Paper 3. 'Calculate' demands shown working with units; 'evaluate' and 'recommend' require a judgement — you must actually pick a side and justify it with reasoned economic argument, not just list pros and cons.

A strong Paper 3 evaluation follows four steps: define the economic problem shown in the stimulus, explain the policy mechanism with a diagram or theory, apply it directly to the data given, then judge the policy's strengths and limitations with a real conclusion. Skipping the application step is the single most common way marks are lost.

A 7-level Paper 3 script shows accurate, fully-labelled calculations with correct units every time, plus an extended answer that reaches a genuine judgement rather than a neutral list. In my experience, the deciding factor is usually application — using the actual numbers from the stimulus, not textbook figures.

The most frequently tested Paper 3 calculations are GDP/GNI figures, index numbers, exchange rate conversions, tax revenue and incidence, elasticity (PED, YED, XED) and Gini coefficient interpretation. Practising these until the formulas are automatic frees up thinking time for the harder evaluation parts.

Revise Paper 3 by drilling past-paper calculations under timed conditions first, then practising full extended responses against the markscheme language, not just your own notes. Building a bank of real policy examples (a named country's interest rate change, a specific carbon tax) makes your evaluation far more convincing than generic theory.

Paper 3 is HL-only, quantitative and policy-focused, worth 20% of the grade; Paper 1 (SL/HL) is an extended essay on micro or macro theory worth 30% at SL and 20% at HL; Paper 2 is data-response worth 40% SL / 20% HL. Paper 3's calculations and real-world policy application make it distinct from both.

Most HL students find Paper 3 harder initially because it demands accurate calculation under time pressure alongside strong essay technique — two skill sets at once. Once the formulas are automatic, though, many students find Paper 3 more predictable than Paper 1's open essay questions, since the question types recur.

Paper 3 counts for 20% of the final grade in IB Economics HL, alongside Paper 1 (20%), Paper 2 (20%) and the internally assessed portfolio (40%, per the current 2025-first-assessment IA structure). Because it's HL-only, it doesn't apply to SL Economics students at all.

No — most students improve Paper 3 performance through focused, repeated practice on calculations and structured evaluation writing rather than extra teaching. What tends to help most is timed past-paper drilling with markscheme feedback, which builds the exact exam habits examiners reward.

Yes — the IB publishes past papers and markschemes through the IB Store and school access to IBIS, and many schools provide subject guides free to students. For structured, topic-by-topic practice beyond scattered past papers, dedicated worksheets and worked mock papers save considerable revision time closer to exams.