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Economics Extended Essay Guide
Write a high-scoring IB Economics Extended Essay by applying economic theory to real-world data and case studies.
What is a Economics Extended Essay?
The Economics Extended Essay (EE) is one of the most challenging and rewarding parts of the IB Diploma. Below you will find everything you need to choose a strong topic, design your methodology, and write a high-scoring EE in Economics.
Word Count
3,500 – 4,000 words
Excluding bibliography, abstract, and appendices. Budget every section carefully before you start writing.
Assessment
Graded A–E
Combined with the TOK essay for up to 3 bonus IB Diploma points. A strong EE and TOK = maximum bonus.
Timeline
12–18 months
From initial topic to final submission. Most students underestimate this. Start early and plan backwards from your deadline.
Supervision
3 required meetings
Initial, interim, and final (viva voce). Each requires an RPPF reflection. Your supervisor approves your RQ.
Strong Economics EE Topic Ideas
| Topic Idea | Why It Works | Difficulty |
|---|---|---|
| How effective has the UK’s National Living Wage policy been in reducing poverty between 2016 and 2023? | Real policy, data available, clear evaluation | Medium |
| To what extent has the Reserve Bank of India’s monetary policy managed inflation since 2020? | Macroeconomics, current data, policy evaluation | Medium |
| How have import tariffs on steel affected the US automotive industry (2018–2022)? | Trade policy, supply chain economics, data rich | Medium |
| To what extent does the Gini coefficient accurately measure income inequality in Brazil? | Development economics, methodological critique | Hard |
| How effective has congestion pricing been in reducing traffic externalities in Stockholm? | Market failure, cost-benefit analysis, clear scope | Easy |
| To what extent has Airbnb’s growth affected rental prices in Amsterdam’s housing market? | Microeconomics, supply/demand, local data | Medium |
Subject-Specific Advice
Economic Theory
Apply it explicitly
Name the economic models you use (AD-AS, supply & demand, Keynesian multiplier, market failure framework). Do not just describe — apply and evaluate the model.
Data
Real, cited, and analysed
Use official data sources: World Bank, IMF, OECD, national statistics offices. Do not use Wikipedia or news articles as primary data sources.
Diagrams
Every diagram must be analysed
Include economic diagrams (supply/demand, AD-AS) only if you analyse them. A diagram with no analysis earns no marks. Label axes correctly.
Evaluation
The highest-marking skill
Apply economic theory, then evaluate it: What are its limitations? What does the real-world data suggest when compared to the theory? What policy implications follow?
Assessment & Common Mistakes
Assessed on: knowledge of economics, application of economic theory, quality of argument and evaluation, and use of economic data. Evaluation is the highest-weighted skill — students who only describe or apply theory without evaluating it are capped at the middle mark bands.
⚠ Common Pitfall
Many Economics EEs apply theory correctly but forget to evaluate it. The highest marks go to students who say: “According to the model, X should happen — but the data shows Y, because of these real-world complications.” This evaluative move is what separates a 6 from a 7.
Economics EE Checklist
- ✓ My RQ is specific to a country, time period, and policy — not a general economic question
- ✓ I use real, cited data from official sources (World Bank, IMF, national statistics)
- ✓ I apply named economic theory/model explicitly and correctly
- ✓ I include at least one labelled economic diagram with analysis
- ✓ I evaluate the limitations of the theory and any discrepancies with real-world data
- ✓ My conclusion addresses the RQ directly with a supported economic judgement
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