The introduction of Key Concepts in the Economics syllabus (first examinations 2022) marks a significant shift in the IB Economics curriculum. Unlike the previous syllabus, students must now base each of their three IAs on a different key concept. These concepts - scarcity, choice, economic well-being, efficiency, change, interdependence, intervention, equity, and sustainability - are designed to help you understand and contextualise the economic theory taught within the course. Despite this, in the past two years of IA submissions, feedback from IB Examiners consistently indicate a common weakness: students often demonstrate insufficient understanding and application of these concepts in their IAs.
The Importance of Key Concepts
Much of the advice online around the Economics IA are still working on the basis of the old syllabus criteria, and tacking on the key concept as an additional element. Key Concepts are not just additional elements; they are central to the IA, contributing to 3 out of the total marks, equivalent to the marks allocated for Analysis and Evaluation. This means your approach to including the Key Concept should be equivalent to that of your analysis and evaluation. Just including your key concept in the beginning and the end, or just name-dropping the key concept in a paragraph is not going to score you the top band.
This criterion assesses the extent to which the student recognizes, understands and links a key concept to the article.
A key concept is identified and the link to the article is fully explained.
The criteria rewards consistent links to the context presented within the article, and encourages you to synthesise the various aspects of economics presented into a common thread. Each concept is broad, reflecting the variety of economic issues discussed in an IA. The challenge is to identify the various commonalities between the key concept and the economic issue and justifying them to say something new about your key concept. This is what it means to have a fully explained link. If it sounds a little abstract right now, don't worry, follow the steps below!
Example
There are many websites out there detailing how to incorporate the key concept, but the most trustworthy is always the syllabus, and it is pretty clear about the approach:
Each of the three commentaries must use a different key concept as a lens through which to analyse the published extracts.
To treat the concept as a lens means that you should start planning your writing FROM the key concept, not trying to fit the key concept into your various arguments and prompts.
Here we propose a 3 step process when writing the IA to guide you in incorporating the Key Concept.
For the purposes of this example, let's choose "Intervention" as our concept, and focus on a microeconomic issue, say, introducing a tax on flight tickets.
Step 1: Deconstructing the Key Concept
Effectively using a key concept begins with a clear definition and an exploration of its broader implications. This means going beyond the textbook or dictionary definition, and elaborating on why it matters, what are the points of consideration, how it influences economic issues, and so on. There are many aspects from which to expand upon, but focus on the ones pertinent to your IA. If done well, this should basically serve as a framework for you to analysis and evaluate the article.
For example, with Intervention, the textbook definition is government influence on markets to achieve some societal goal. However, we can go deeper into why that is, how that is done, and what we need to consider.
Why? Often, because there is a misalignment between the market objectives and the government's (i.e. societal) goals. This could be because of the presence of externalities within the market, causing inefficient allocation of resources, leading to allocative inefficiency. Hence, the government is there to restore the social optimum.
How? In our specific circumstances, through implementing a specific indirect tax. It is best to be as precise as possible here on the specific tool.
What do we need to consider? We can propose some points of discussion we will tackle later in our analysis and evaluation. Some good points to consider may be: the necessity, extent, and impact (on equity, revenue, etc) of government intervention, how these decisions are prioritised against other societal needs, implications on the market, etc.
We put all of this in our introduction. After providing a brief overview of the economic issue in your article, first state the key concept, then provide the deconstruction, and detail the Why, How and What as we have deconstructed above.
Step 2: Integrating Key Concepts in Analysis and Evaluation
It’s vital to continuously relate back to the key concept throughout the IA. This means moving beyond a mere mention in the introduction to a thorough exploration in subsequent sections. Each paragraph should offer a fresh perspective or argument related to the key concept, seamlessly woven into the analysis and evaluation of the economic policy or issue at hand. How can we do more than just "name-dropping" the key concept?
In every single point of analysis/evaluation, you are unpacking an aspect of your economic issue. At the same time, you should use this as an opportunity to equivalently unpack an aspect of your key concept. For example, one argument might be that flight tickets being taxed will encourage consumers to consider substitutes such as driving to their destination. This might discourage the negative externalities of the flights market, but encourage that within the cars market. Here, we see that intervention is a double edged sword. While intervention targeted at achieving a particular societal goal may be effective, it could be detrimental to other societal goals, and it ultimately is a matter of prioritisation - clearly the government has prioritised pollution from flights over that of vehicles, which is telling.
This gives me room to focus on another aspect of the key concept, when I discuss the implications on equity. Flights may be the only way to travel for regional communities, which are typically lower socio-economic areas. Combined with the regressive nature of an indirect tax, it could hurt those that need air travel most, while not impacting the decisions of most others. Here, we can see that intervention, while good natured and aimed to benefit society, may also introduce societal problems.
By unpacking the "lessons" we learn from each analysis or evaluation point on the key concept, you demonstrate how you can approach the various pros and cons discussed within the article in a structured way.
Step 3: Concluding with a Nuanced Understanding
The conclusion of your IA should reflect a mature and nuanced understanding of the key concept. Remember where we started. We began with a clear presentation of the key economic issue and proposed policy in the introduction, defining the key concept in basic terms and outlined the framework for analysis and evaluation by deconstructing our key concept. As your wrote your analysis and evaluation, we slowly peeled away the various aspects of the key concept we outlined in the introduction. Now it's time to put all the different nuggets of our key concept together into a coherent thesis of sorts that reveals the complexities and multifaceted nature of the key concept, and by extension, our economic issue. The goal, by the end of your IA, is for you to articulate a balanced, yet nuanced view of your economic issue from the key concept. It should almost feel revelatory in the way that you "understood" or "learned something new" about the key concept and how it relates to economic issues in a general sense.
For example, by the end of this hypothetical IA, I may have learned that Intervention requires the balancing of various societal objectives, leading to trade-offs on equity and opportunity costs in other areas of policy, but I may still leave with the judgement that intervention is justified as it ultimately leads to a more efficient market.
This not only makes your conclusion on your economic issue more reasoned, but also demonstrates that you haven't just regurgitated the textbook analysis points. Rather, you have carefully considered the issue from the perspective of your key concept, and arrived at this natural evaluation.
What to avoid
Repetition
A common pitfall is the repetitive mention of the key concept without substantial development. Instead, students should aim to expand on different facets of the concept in each section. For example, when analysing diagrams, link them to how the policy achieves its goals in the context of the key concept. In evaluating the cons, discuss the costs and opportunity costs, providing a more nuanced view of the concept in action.
Too wordy!
Given the tight word count for the Economics IA, and how you still need to be very nuanced and express some complexity in your writing, there is really no room for you to be anything BUT concise. To facilitate this, consider writing in a consistent, chronological flow. It is often more efficient to start with the cause of an issue and then discuss flow-on effects rather than the other way round. I.e. Due to A, B happens, which led to C and finally, D. Having a clear direction and establishing clear cause and effect in each analysis point is crucial for a clear and concise IA.
Conclusion
The ultimate goal of the Economics IA is to demonstrate a sophisticated understanding of economics as a complex and multifaceted field. Through critical evaluation of the economic issue, policy, and key concept, you are expected to develop a more intricate view of economics. Demonstrating this complexity in your treatment of the key concept is crucial for scoring in the top band of the IA assessment criteria.