Command Terms in IB Economics: What Examiners Expect and How to Answer
- Excel in Economics

- Dec 3, 2024
- 5 min read
Updated: Dec 5, 2024
Command terms are the backbone of IB Economics exam questions. They tell you exactly what the examiner expects in your response. Misunderstanding these terms is one of the most common reasons students lose marks, even if they know the content well. In this guide, we’ll decode the key command terms, explain how to approach them, and provide examples to help you score top marks.

1. What Are Command Terms?
Command terms are instructional words in exam questions that specify the type of response required. Each term signals a specific level of depth, ranging from basic knowledge recall to critical evaluation.
Why Are They Important?
Examiners use command terms to structure mark schemes.
Failing to address the command term directly results in losing marks, even if your content is correct.
2. Key Command Terms and How to Answer Them
1. Define
Meaning: Provide a precise meaning of the term or concept.
Approach: Write a concise, accurate definition, often with an example if possible.
Example Question: “Define price elasticity of demand (PED).”
Answer: “Price elasticity of demand measures the responsiveness of quantity demanded to a change in price, calculated as % change in quantity demanded divided by % change in price.”
2. Explain
Meaning: Provide a detailed account of how or why something happens.
Approach:
Define the key concept.
Provide a step-by-step explanation of the process or relationship.
Use examples or diagrams to support your explanation.
Example Question: “Explain how subsidies can address market failure.”
Answer:
“Subsidies reduce production costs, shifting the supply curve rightward from S1 to S2, as shown in the diagram. This lowers the price from P1 to P2, increasing consumption of the good. For merit goods, subsidies encourage consumption and internalize positive externalities.”
3. Analyze
Meaning: Break down a concept, situation, or issue into its components, identifying relationships and impacts.
Approach:
Identify the key elements of the topic.
Explain how these elements interact or cause specific outcomes.
Support your analysis with diagrams and real-world examples.
Example Question: “Analyze the impact of a minimum wage on the labor market.”
Answer:
“A minimum wage sets a price floor above the equilibrium wage, as shown in the diagram. This can lead to excess supply of labor (unemployment) as firms hire fewer workers at the higher wage. However, it increases income for low-wage workers and can reduce income inequality.”
4. Evaluate
Meaning: Assess the strengths and weaknesses of an argument, theory, or policy, providing a balanced conclusion.
Approach:
Discuss advantages and disadvantages.
Address short-term vs. long-term impacts and limitations.
Suggest alternatives or complementary policies.
Conclude with a well-justified judgment.
Example Question: “Evaluate the use of indirect taxes to reduce the consumption of demerit goods.”
Answer:
“Indirect taxes raise prices, reducing demand for demerit goods like cigarettes. However, the effectiveness depends on price elasticity; for inelastic goods, consumption may not decrease significantly. Taxes are also regressive, disproportionately affecting low-income consumers. Alternatives like public awareness campaigns could complement taxation to enhance effectiveness.”
5. Compare and Contrast
Meaning: Identify similarities and differences between two or more concepts, policies, or situations.
Approach:
Define both terms or concepts.
Discuss similarities in one paragraph and differences in another.
Use examples to support your points.
Example Question: “Compare and contrast monetary policy and fiscal policy as tools for managing economic growth.”
Answer:
“Both monetary and fiscal policies aim to manage economic growth. Monetary policy uses interest rates and money supply to influence AD, while fiscal policy involves government spending and taxation. A key difference is that monetary policy is controlled by central banks, offering faster implementation, whereas fiscal policy is managed by governments and can have greater direct impacts on specific sectors.”
6. Discuss
Meaning: Present a balanced argument considering various perspectives or factors.
Approach:
Explore multiple sides of the issue or question.
Include real-world examples and diagrams.
Conclude with a summary of key points.
Example Question: “Discuss the effectiveness of tariffs in protecting domestic industries.”
Answer:
“Tariffs protect domestic industries by making imports more expensive, encouraging local consumption. However, they may lead to retaliation from trade partners, reducing exports. Over time, tariffs can reduce efficiency as protected industries face less competition. Alternatives like subsidies or investment in innovation may achieve similar goals without distorting trade.”
3. General Tips for Addressing Command Terms
1. Identify the Term Early
Underline the command term as soon as you read the question.
Ensure your answer matches the depth required.
2. Use a Structured Approach
Stick to a clear structure:
Define the concept.
Explain with examples.
Evaluate (if required).
3. Incorporate Diagrams
For terms like "explain," "analyze," or "evaluate," include relevant diagrams.
Refer explicitly to the diagram in your explanation.
4. Use Real-World Examples
Examiners reward answers grounded in real-world applications.
Prepare examples in advance for common topics.
5. Practice with Past Papers
Review questions from past exams to understand how command terms are used.
Cross-check your answers with mark schemes.
4. Command Term Cheat Sheet
Command Term | What It Means | Key Focus |
Define | Provide a precise meaning. | Accuracy of definition. |
Explain | Describe how or why something happens. | Clarity, examples, diagrams. |
Analyze | Break down into parts and explain relationships. | Cause-effect relationships. |
Evaluate | Assess pros and cons, and provide judgment. | Balance, depth, alternatives. |
Compare | Show similarities. | Identifying shared features. |
Contrast | Show differences. | Highlighting distinctions. |
Discuss | Explore multiple perspectives. | Breadth of argument, real-world links. |
5. Common Mistakes to Avoid
Ignoring the Command Term
Mistake: Providing analysis when the question asks for evaluation.
Solution: Highlight the command term and stick to what it asks.
Shallow Responses
Mistake: Failing to provide examples, diagrams, or depth in answers.
Solution: Always include specific examples and detailed explanations.
Overcomplicating Definitions
Mistake: Writing lengthy, unclear definitions for "define" questions.
Solution: Keep definitions concise and accurate.
Missing Evaluation
Mistake: Leaving out evaluation in high-mark questions.
Solution: Always balance pros and cons, even briefly.
6. Practice Question Examples
Define: “Define cross-price elasticity of demand (XED).”
Answer: “XED measures the responsiveness of demand for one good to a change in the price of another good, calculated as % change in quantity demanded of Good A divided by % change in price of Good B.”
Analyze: “Analyze the impact of exchange rate depreciation on a country’s trade balance.”
Answer: Discuss how depreciation makes exports cheaper and imports more expensive, improving the trade balance if the Marshall-Lerner condition holds.
Evaluate: “Evaluate the effectiveness of monetary policy in controlling inflation.”
Answer: Examine how interest rate hikes reduce inflation but may increase unemployment, with real-world examples from countries like the US or Eurozone.
Conclusion
Understanding command terms is essential for success in IB Economics. By decoding what examiners expect and tailoring your responses accordingly, you can maximize your marks and demonstrate a clear understanding of economic concepts. Practice frequently, use structured answers, and always refer to the command term to stay on track.

