A government introduces or raises a tax on sugary drinks.
Approach · Micro. Indirect-tax diagram; price elasticity of demand, tax incidence, government revenue, welfare loss, and the health externality argument.
Economics · IA research questions
Written and cross-checked by IB Diploma graduates: Alexander (41), Alejandro (40), Martina (40), Victoria (38), Martin (35), Maria (34)
· Checked against official IB guidance · Editorial policy
The Economics IA is three 800-word commentaries, each on a different news article (each from a different source, published within about a year of writing) and each applying a different part of the syllabus — one microeconomics, one macroeconomics, one global. A strong commentary is built around one clearly drawn diagram and a real evaluation of a policy.
Scope: These are angles, not fixed titles — find a current article that fits, then narrow to one concept. Draw and fully explain one diagram per commentary; evaluate with stakeholders, short vs long run, and assumptions.
Approach · Micro. Indirect-tax diagram; price elasticity of demand, tax incidence, government revenue, welfare loss, and the health externality argument.
Approach · Micro. Labour-market diagram with a minimum wage above equilibrium; trade-off between higher pay and unemployment, elasticity of labour demand, monopsony counter-argument.
Approach · Micro. Subsidy diagram; positive externality of consumption, marginal social benefit, opportunity cost of the spending, effectiveness vs alternatives.
Approach · Macro. AD/AS analysis; the monetary transmission mechanism, time lags, effect on investment, the exchange rate, and inflation vs growth.
Approach · Macro. AD shift and the multiplier; crowding out, the state of the cycle, automatic stabilisers, and debt sustainability.
Approach · Macro. Demand-pull vs cost-push causes; real vs nominal values, distributional effects, and which policy tool fits the cause.
Approach · Global. Partial-equilibrium tariff diagram; effects on domestic producers, consumers, government, deadweight loss, and terms of trade.
Approach · Global. Effects on exports, imports and inflation; the J-curve, the Marshall–Lerner condition, and pass-through.
Approach · Micro. The price mechanism rationing scarce supply; allocative efficiency vs equity, consumer surplus, and price-gouging regulation.
Approach · Global. Trade creation vs trade diversion; effects on consumers, protected industries, and the pattern of specialisation.
Approach · Macro. Types of unemployment (structural, cyclical, frictional); hysteresis, the output gap, and supply-side vs demand-side policy.
Approach · Global/development. Growth vs development trade-offs, debt burden, the effect of conditionality on public services, and alternative financing.
Primary-source references used to verify key assessment facts on this page. Last source check: September 22, 2026.
These Economics ideas are original iBacalao starting points, not official IB research questions. Check the current Economics subject guide, your assessment session and your school's safety/ethics rules before committing to a question.
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