Economics

Learning Area Leader: Mr De Souza

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 to meet the needs and wants of citizens, and may therefore assist them in making more informed and responsible decisions. Students will utilise the economic models and tools of economists effectively to analyse and evaluate the decisions made by key economic agents and, in the process, appreciate the different viewpoints about the issues that may affect a modern economy.

Career Paths / Future Directions:

Economic planning, Data analyst, Stock broker, Investment analyst, Financial planning, Actuary, Consultancy, Government and Private Organisations consultant, Journalism

Unit 1 – The Behaviour of Consumers and Businesses (Code: ECON11)

Description

Economics is a dynamic and constantly evolving field. As a social science, Economics is interested in the way humans behave and the decisions made to meet the needs and wants of society. In this unit students explore their role in the economy, how they interact with businesses and the way economic models and theories have been developed to explain the causes and effects of human action.

Outcomes

• To describe the basic economic problem, discuss the role of consumers and businesses in the economy and analyse the factors that influence decision making.

• To explain how prices change and how resources are allocated is the basic demand and supply model. Using contemporary case-studies students make connections between the theory and the workings of different markets in the Australian and world economy.

• To explain the role of relative prices and other non-price factors in the allocation of resources in a market-based economy.

Assessment

• A report on a contemporary economic market (ASX, Housing etc.)

• A portfolio of contemporary examples and applied economic exercises;

• Topic tests

• Filming and role-playing of economic scenarios

Unit 2 – Contemporary Economic Issues (Code: ECON22)

Description

As a social science, economics often looks at contemporary issues where there are wide differences of opinion and constant debate. In most instances the decisions made by consumers, businesses and governments may benefit some stakeholders but not others. Trade-offs, where the achievement of one economic or public policy goal may come at the expense of another, are the subject of much debate in economic circles.

Outcomes

• To explain the factors and policies that may influence economic growth and environmental sustainability, and analyse the potential trade-off

• To 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.

Assessment

• Case studies

• Oral presentation

• Folio of current events

• Topic tests

• Examination based on units 1 and 2

Unit 3 – Australia’s Economic Prosperity (Code: ECON33)

Description

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. As well as gaining an understanding of Australia’s domestic position, students also investigate the factors that influence aggregate supply and aggregate demand including a focused look at Australia’s trade position on an international level.

Outcomes

• Explain how markets operate to allocate resources, and discuss the effect of government intervention on market outcomes.

• Analyse key contemporary factors that may have influenced the Australian Government’s domestic macroeconomic goals over the past two years and discuss how achievement of these goals may affect living standards.

• Explain the factors that may influence Australia’s international transactions and evaluate how international transactions and trade liberalisation may influence the current account balance.

Assessment

• Maintaining a log of current events

• Analysis and interpretation of economic data, Government and Reserve Bank media releases and newspaper articles

• Text book exercises

• Written reports

• Tests

Unit 4 – Economic Management (Code: ECON44)

Description

Students examine the role of the Reserve Bank of Australia (RBA) with a focus on its responsibility to alter the cost and availability of credit in the economy. Students consider each of the transmission mechanisms through which changes to interest rates can affect the level of aggregate demand in the economy and how these changes might affect the achievement of the Australian Government’s domestic macroeconomic goals.

Outcomes

• Discuss the nature and operation of aggregate demand policies and analyse how the policies may influence the Australian Government’s domestic macroeconomic goals and living standards.

• Discuss the nature and operation of aggregate supply policies and analyse how the policies may influence the Australian Government’s domestic macroeconomic goals and living standards.

Assessment

• Maintaining a log of current events

• Analysis and interpretation of economic data, Government and Reserve Bank media releases and newspaper articles

• Text book exercises

• Written reports

• Tests

• Trial exams

Unit 3 Coursework 25%

Unit 4 Coursework 25%

Written Examination (November) 50%