Criterion A – Diagrams (Maximum: 3 marks)
To get full marks (3) for Criterion A of your IB Economics Internal Assessment the IB states: “Relevant, accurate and correctly labelled diagrams are included, with a full explanation.”
Relevant – your diagrams must be relevant to your chosen economic concept (which has to be connected to what the article is about). E.g. Your article is about the government capping the price of a particular good. This means you will have to use the diagram of the maximum price (price ceiling). Also, if that price ceiling is introduced in a particular market structure (Oligopoly/Monopoly/etc.) you will use the diagram of that market.
Accurate and correctly labelled – below you can see a well labelled diagram:
The diagram above shows a price ceiling introduced in a monopoly. This diagram includes (and your’s should as well):
- The diagram’s title is full and clearly states what is shown below
- X and Y axis are fully labelled (Not only what each axis represents but also the units)
- All curves are labelled clearly (MC, MR, D, Price ceiling)
- Prices and Quantities are labelled (P1, P2, Q1, Q2). If your article clearly states the prices and quantities you should include those exact figures in your graph (instead of P1, Q1, etc.).
- All important curves’ intersections can be clearly seen.
- Arrows demonstrate extensions of demand and marginal cost, however these are not necessary.
Full explanation – a good typical start of the explanation of the diagram above could be:
Assume the market starts in equilibrium at profit maximizing point where MC=MR1 at quantity Q1 and price P1. Then a price ceiling is introduced at P2, which is the maximum price producers can charge consumers for goods and services……..
It is a fantastic start of the step by step explanation you are about to do. Be as specific and as clear as you can: if curves shift – explain why. For example, the diagram above requires an explanation of why did the maximum price P2 become monopoly’s new marginal revenue curve. That would be a good continuation of your diagram’s explanation.
This is how you get all 3 marks for your diagrams in your Economics Internal Assessment!
Good luck and check out the guides below!
CLICK HERE to learn a quick and easy way to draw professional-looking IB Economics Internal Assessment diagrams!