Ib Economics Hl Formula Booklet <Latest – 2027>

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While the International Baccalaureate (IB) does provide an official "formula booklet" for use during Economics examinations, Higher Level (HL) students are expected to master a specific set of quantitative tools for Paper 3 and data-response questions in Paper 2.

Critical Note:

While the booklet provides definitions, the student must know that to maximize profit, a firm produces where Marginal Cost ($MC$) equals Marginal Revenue ($MR$), provided that $MR$ is falling. ib economics hl formula booklet

• $TOT = \left( \frac\textIndex of Export Prices\textIndex of Import Prices \right) \times 100$

• If demand is elastic, raising prices decreases total revenue.
• If demand is inelastic ($<1$), raising prices increases total revenue.

• Multiplier (k) = 1 / (1 – MPC) or 1 / (MPS + MPT + MPM)
• Where: MPC = Marginal Propensity to Consume; MPS = Save; MPT = Tax; MPM = Import.
• Trap: Students use the simple multiplier (1/MPC) when the question includes taxes or imports. The IB specifically tests the complex multiplier in HL.