The structure
Six sections. 775 words. Here's how to use them.
This is a suggested structure, not a rigid formula. But it's tried and tested: follow it unless you have a very good reason not to. You can see it in action in the example IA.
Introduction
~75 words- Introduce the economic problem the article raises, using relevant economic terms naturally as you describe what is happening. Terms should appear because you need them, not to show you know them.
- Introduce your key concept and explain what it means in this specific context. Do not just name it: say what it means here and why this article is an example of it. In the model IA, the student writes that the market "fails to achieve allocative efficiency, where marginal social benefit equals marginal social cost": the concept is explained, not just mentioned.
Problem and Solution Overview
~50 words- State the specific economic problem in one or two sentences, connecting it explicitly to your key concept (e.g., overallocation of sugary drinks leads to allocative inefficiency).
- State the proposed or implemented solution, and connect it to the concept as well (e.g., a sugar tax is proposed to correct the market failure and allocate the good more efficiently). The concept should appear in both sentences, not just be noted on the coversheet.
Baseline Diagram and Analysis
~175 words- Insert your first diagram showing the initial market state or the market failure.
- Explain the diagram by referencing specific curves (e.g., MPC, MSC) and labels (P1, Q1), and tie the explanation to data or details from the article.
- Show explicitly how the diagram illustrates your key concept. Where does the concept manifest in the diagram? For example, if your concept is efficiency, identify where the allocative inefficiency occurs and what it represents in this market. The concept should do analytical work here, not just appear as a word. Analytical work means the concept is doing something in your argument: it explains why a result matters, helps you interpret what you see in the diagram, or frames what you are measuring. Bold the concept word each time it appears.
Policy Diagram and Analysis
~175 words- Insert your second diagram illustrating the impact of the policy or the shift in the market.
- Explain the mechanics of the change, referencing specific numbers or quotes from the article to justify the shifts shown.
- Connect the change explicitly to your key concept: what does the shift mean in terms of the concept? For example, if your concept is efficiency, explain how the policy moves the market toward or away from the socially optimal output, and whether that represents an improvement in efficiency or a new distortion. Bold the concept word each time it appears.
Evaluation and Synthesis (CLASPP)
~275 wordsProvide a multidimensional evaluation using at least three of the CLASPP components. This section will likely need multiple paragraphs. More on CLASPP in Stage 8.
- C: Conclusion: a final judgment on the policy's overall effectiveness.
- L: Long-term vs Short-term: immediate impacts vs delayed consequences.
- A: Assumptions: does ceteris paribus hold? Are consumers rational?
- S: Stakeholders: who wins, who loses?
- P: Priorities: which economic objective matters most here?
- P: Pros and Cons: weigh advantages against disadvantages explicitly.
Tie each evaluative point back to your key concept, not just at the start or end of the section, but as part of the reasoning. For example: "In the long run, the policy may not fully achieve efficiency because..." or "For low-income households, the concept of equity conflicts with the efficiency goal here because..." Each point should explain what its argument means for the concept, not just raise a general economic consideration.
Conclusion
~25 words- Deliver a definitive judgment on whether the policy effectively addresses the problem.
- The concept should be the lens for this judgment, not just a word you mention at the end. Your conclusion should answer the question: to what extent does this policy achieve your concept? That is the question your whole commentary has been building toward.