Economics

There are no prerequisites for entry to Units 1, 2 and 3. Students who intend to undertake Units 3 and 4 however, are strongly encouraged to undertake Units 1 & 2.

Economics is the study of how resources are allocated to meet the needs and wants of society. It attempts to explain how and why individuals behave the way they do and the consequences of their decision making. Studying Economics as a social science enables students to gain valuable insight into the economic problems that they may face on an individual basis and collectively as a society. Economics examines the role of consumers, businesses, governments and other organisations in the decision making about the allocation of resources, the production of goods and services.  Students’ understanding of economics will enable them to appreciate the reasons behind these decisions and the intended and unintended consequences.

Further study in the field of Economics can lead to a broad range of career opportunities such as stockbroking, insurance, business analysis, banking and finance, journalism and public policy.

Unit 1 The behaviour of consumers and businesses

Students explore some fundamental economic concepts. They examine basic economic models where consumers and businesses engage in mutually beneficial transactions and investigate the motivations and consequences of both consumer and business behaviour. They examine how individuals might respond to incentives and how technology may have altered the way businesses and consumers interact. Students investigate contemporary examples and case studies to enhance their understanding of the introductory economic concepts. Students examine a simple microeconomic model to explain changes in prices and quantities traded.

Outcomes

  1. Describe the basic economic problem, discuss the role of consumers and businesses in the economy and analyse the factors that influence decision making.
  2. Explain the role of relative prices and other non-price factors in the allocation of resources in a market-based economy.

Unit 2 Decision making in markets

Students focus on the possible trade-off between the pursuit of growth in incomes and production and the goal of environmental sustainability and long-term economic prosperity. Students explore how the benefits of economic growth are shared in an economy and begin to appreciate that efforts to increase economic efficiency might lead to a more inequitable distribution of income. They evaluate the role of government intervention in markets and discuss whether achieving greater equality causes a decline in economic growth and average living standards. They consider the perspectives of relevant stakeholders and evaluate the validity of individual and collective responses to global issues.

Outcomes

  1. Explain the factors and policies that may influence economic growth and environmental sustainability, and analyse the potential trade-off.
  2. Explain the factors and policies that may influence equity in the distribution of income and efficiency of resource allocation, and analyse the potential trade-off.

Unit 3 Economic activity and objectives

In this unit students investigate the role of the market in allocating resources and examine the factors that are likely to affect the price and quantity traded for a range of goods and services. They develop an understanding of the key measures of efficiency and how market systems can result in efficient outcomes. Students consider contemporary issues to explain the need for government intervention in markets and why markets might fail to maximise society’s living standards. They investigate the factors that influence the level of aggregate demand and aggregate supply in the economy They analyse how international transactions are recorded, predict how economic events might affect the value of the exchange rate and evaluate the effect of trade liberalisation.

Outcomes

  1. Explain how markets operate to allocate resources, and discuss the effect of government intervention on market outcomes.
  2. Analyse key contemporary factors that may have in uenced the Australian Government’s domestic macroeconomic goals over the past two years and discuss how achievement of these goals may affect living standards.
  3. Explain the factors that may influence Australia’s international transactions and evaluate how international transactions and trade liberalisation may influence the current account balance, the Australian Government’s domestic macroeconomic goals and living standards in Australia.

Unit 4 Economic management

Students develop an understanding of how the Australian Government can alter the composition and level of government outlays and receipts to directly and indirectly influence the level of aggregate demand and the achievement of domestic macroeconomic goals. Students examine the role of the Reserve Bank of Australia with a focus on its responsibility to alter the cost and availability of credit in the economy. In Area of Study 2 students consider how the Australian Government utilises aggregate supply policies to manage the Australian economy. They evaluate these policy responses in terms of their effect on incentives and consider how they increase competition and efficiency in the economy.

Outcomes

  1. Discuss the nature and operation of aggregate demand policies and analyse how the policies may in uence the Australian Government’s domestic macroeconomic goals and living standards.
  2. Discuss the nature and operation of aggregate supply policies and analyse how the policies may in uence the Australian Government’s domestic macroeconomic goals and living standards.

Assessment

Units 1 and 2

The student’s performance on each outcome is assessed using one or more of the following:

  • Share market game
  • Oral presentations
  • An investigation into the property market
  • Multimedia presentations
  • Role plays
  • Folio of applied economics exercises
  • Collection and analysis of current newspaper articles
  • Tests
  • Case studies
  • Report

Units 3 and 4

The student’s performance on each outcome is assessed using one or more of the following:
  • a folio of applied economic exercises
  • an essay
  • a report
  • media analysis
  • a case study
  • structured questions.

Unit 3 - School Assessed Coursework = 25%

Unit 4 – School Assessed Coursework = 25%

End of Year Written Examination = 50%

Contact Teacher - Lynsey Betts & Maurice Colin