Economics Diagrams for Economic Students

🎯 Master your Economics Diagrams

Click the dropdown menu above to explore all the key IB Economics diagrams—complete with GIFs, clear explanations, and real-life examples to help everything click into place!

💡 Prefer visuals?

Scroll through the slides below to see every IB economics diagram in one place—perfect for reviewing, revising, or analysing as a class.

🃏 Think you’ve got it?

Test yourself with our interactive flashcards—each one challenges you to draw the correct diagram, with the perfect version on the back to check your answer. A fun way to learn and self-assess!

Progress: 1 / 40

Using the J-Curve, explain how a depreciation in a country’s currency might initially worsen the current account before improving it.

Draw a diagram to show the effect of a decrease in the supply of pollution permits.

Using a diagram, explain how countries benefit from specialization based on absolute advantage.

Draw a diagram to show the impact of a tax on consumer and producer surplus.

Using a diagram, show the impact of a collusive profit maximising oligopolist on market outcomes.

Draw a diagram to show the market failure caused by positive production externalities.

Positive Production Externalities Diagram

Use a monetarist AD/AS diagram to show how contractionary fiscal or monetary policy can be used to close an inflationary gap.

Contractionary Policy - Closing an Inflationary Gap (Monetarist)

Use a diagram to show why firms in monopolistic competition earn normal profit in the long run.

Monopolistic Competition Long Run Diagram

How can subsidies be used to encourage the production and consumption of merit goods? Use a diagram to support your answer.

Explain the impact of a tariff on domestic consumers, producers, and the government using a diagram. What are the resulting welfare effects?

Use a monetarist AD/AS diagram to show how expansionary fiscal or monetary policy can be used to close a deflationary gap.

Expansionary Policy - Closing a Deflationary Gap (Monetarist)

Using a diagram, explain how an export subsidy affects domestic producers, global prices, and welfare.

Draw a diagram to show the incidence of an indirect tax when demand is inelastic.

Using both market and firm diagrams, show how a perfectly competitive firm making abnormal profit in the short run returns to normal profit in the long run.

Perfect Competition Long Run Adjustment Diagram

How is both consumer and producer surplus maximised when a market is in equilibrium? Use a diagram to support your answer.

Use the Lorenz Curve to explain how income inequality is measured. How does the curve reflect the level of inequality in an economy?

Using the loanable funds market diagram, explain how expansionary fiscal policy might lead to 'crowding out' in an economy.

Using a diagram, explain how a production subsidy for domestic firms affects output, imports, and producer behaviour.

Using a diagram, explain how the imposition of an import quota affects domestic producers, consumers, and overall welfare.

Draw a diagram to show the welfare loss resulting from monopoly power.

Draw a diagram to show the incidence of an indirect tax when demand is elastic.

How do supply-side subsidies help increase the consumption of merit goods? Support your answer with a diagram.

Supply-side Subsidy and Merit Goods Diagram

Use the long-run Phillips Curve to explain the concept of the natural rate of unemployment (NRU). Why does expansionary policy fail to reduce unemployment in the long run?

Explain what is meant by a natural monopoly and how the diagram illustrates why it is more efficient for a single firm to operate in such a market.

Draw a diagram to show the market failure that occurs due to asymmetric information.

Draw a Keynesian AD/AS diagram to show the impact of an increase in government spending on infrastructure on aggregate demand.

Using both market and firm diagrams, explain how a perfectly competitive firm making losses in the short run adjusts to earn normal profit in the long run.

Perfect Competition Loss to Long Run Diagram

Using the money market diagram, explain what happens when the central bank increases the money supply and how this can lead to a liquidity trap.

Draw a diagram to show the impact of positive consumption externalities on market outcomes.

Positive Consumption Externalities Diagram

Draw a diagram to show the impact of negative consumption externalities on market outcomes.

Negative Consumption Externalities Diagram

Draw a diagram to show the impact of negative production externalities on social welfare.

Negative Production Externalities Diagram

How does the introducion of a minimum wage affect the equilibrium level of employment? Use a diagram to support your answer.

Using a diagram, explain how countries can benefit from trade when they specialize based on comparative advantage.

Use a Keynesian AD/AS diagram to illustrate a deflationary gap. What might cause this situation and what does it imply for unemployment?

Draw a diagram to show the effect of an increase in the demand for pollution permits.

Tradable Permits Demand Increase Diagram

Draw a Keynesian AD/AS diagram to show the impact of increased investment in education and technology on long-run aggregate supply.

Use a diagram to show why perfectly competitive firms earn normal profit in the long run.

Perfect Competition Long Run Equilibrium Diagram

Draw a diagram to show the impact of a maximum price set below the equilibrium price.

How can indirect taxes be used to correct negative consumption externalities? Use a diagram to support your answer.

Indirect Taxes and Negative Consumption Externalities Diagram

How can indirect taxes be used to correct negative production externalities? Use a diagram to support your answer.

The Curious Economist

Economic news for students

Economics Diagrams