Economics
Learning Area Leader: Ms Burley
Economics is the study of how resources are best 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. Irrespective of background, Economics has an impact on everyone and is integral to understanding how to navigate through every part of society.
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 and assists them to make rational and informed decisions. Students will utilise the economic models and tools of economists effectively to analyse and evaluate multiple modes of action made by key economic agents and, in the process, gain an appreciation of the different viewpoints about contemporary issues that affect the domestic and global economy.
As a part of the course, students will engage in housing, labor and stock markets as they study wealth creation and the issues of equity and income distribution in society.
Career Paths / Future Directions
Economic Planning, Data Analyst, Banking, Stockbroking, Investment Analyst, Financial Planning, Actuary, Consultancy, Journalism
Unit 1 – Economic Decision-Making (Code: ECON11)
Description
In this unit students explore their role in the economy, how they interact with businesses, and the role of the government in the economy. Students are introduced to and explore fundamental economic concepts. They examine basic economic models where consumers and businesses engage in mutually beneficial transactions and investigate the motivations behind both consumer and business behaviour. They examine how individuals might respond to incentives. Students are encouraged to investigate contemporary examples and case studies to enhance their understanding of the introductory economics concepts.
Students use demand and supply models to explain changes in prices and quantities traded. Through close examination of one or more markets, they gain insight into the factors that may affect the way resources are allocated in an economy and how market power can affect efficiency and living standards.
Students consider the insights of behavioural economics and how those insights contrast with the traditional model of consumer behaviour. They investigate at least one behavioural economics experiment and analyse how the theories and observations of behavioural economics have been used by the government in planning and implementing policy, and by businesses in managing their relationships with consumers.
Outcomes
· To describe the basic economic problem, discuss the role of consumers, businesses and the government in the economy, and analyse the factors that affect economic decision-making.
· To explain the role of relative prices and other non-price factors in the allocation of resources in a market-based economy and analyse the extent of competition in markets.
· To explain how behavioural economics complements traditional understandings of decision-making and analyse the effects of behavioural economics insights on consumers and other economic agents.
Assessment
· A report on a contemporary economic market (ASX, Housing etc.)
· A portfolio of contemporary case studies and applied economic exercises
· Topic tests
· Filming and role-playing of economic scenarios.
· Social Experiments
Unit 2 – Economic Issues and Living Standards (Code: ECON22)
Description
Students consider the link between economic activity and economic growth and investigate the importance of economic growth in raising living standards. They evaluate the benefits and costs of continued economic growth and consider the extent to which our current measurements of living standards are adequate.
Students undertake an applied economic analysis of two contemporary economics issues from a local, national and international perspective. They use the tools of data collection, analysis, synthesis and evaluation to examine the issue through an economics lens. They do this through investigation of the economic factors influencing the issue and via examination of its economic importance at a local, national and international level. Students consider the perspectives of relevant economic agents and evaluate the validity and effectiveness of individual and collective responses to the issue.
Outcomes
Explain the purpose of economic activity, the distinction between material and non-material living standards and the factors that may affect levels of economic activity and growth, discuss the costs and benefits of economic growth and examine the impact of economic activity on living standards using alternative measures.
Explain the factors that affect two economic issues
at a local, national and international level and evaluate actions to address the issues.
Assessment
· Case studies
· Oral presentation
· Folio of current events
· Topic tests
· Examination
Unit 3 – Australia’s Living Standards (Code: ECON33)
Description
In this unit students investigate the role of the market in allocating resources and examine the factors that affect the price and quantity traded for a range of goods and services. Students develop an understanding of the key measures of efficiency and how market systems might 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. As part of a balanced examination, students also consider unintended consequences of government intervention in the market.
Students develop an understanding of the macroeconomy. They investigate the factors that affect the level of aggregate demand and aggregate supply in the economy and apply theories to explain how changes in these variables might affect achievement of domestic macroeconomic goals and living standards. Students assess the extent to which the Australian economy has achieved these macroeconomic goals during the past two years.
Students investigate the importance of international economic relationships and the effect of these on Australian living standards. Students analyse how international transactions are recorded and examine how economic factors might affect the value of the exchange rate, the terms of trade and Australia’s international competitiveness. Students also analyse how changes in the value of the exchange rate, the terms of trade and international competitiveness affect the domestic macroeconomic goals.
Outcomes
· To analyse how markets operate to allocate resources and evaluate the role of markets and government intervention in achieving efficient outcomes.
· To analyse key contemporary factors that may have affected domestic macroeconomic goals over the past two years, evaluate the extent to which the goals have been achieved and discuss the effects on living standards.
· To analyse the factors that may affect the exchange rate, terms of trade and Australia’s international competitiveness, and discuss their impact on Australia’s international transactions and the achievement of the domestic macroeconomic goals and living standards.
Assessment
· Maintaining a log of current events.
· Analysis and interpretation of economic data, Government & Reserve Bank media releases and newspaper articles
· Written reports
· Tests
Unit 4 – Managing the Economy (Code: ECON44)
Description
This unit focuses on the role of aggregate demand policies in stabilising the business cycle to achieve the domestic macroeconomic goals. Students develop an understanding of how the Australian Government can alter the composition of budgetary outlays and receipts to directly and indirectly affect the level of aggregate demand, the achievement of domestic macroeconomic goals and living standards.
Students also examine the role of the RBA with a focus on its responsibility to conduct monetary policy. Students consider how the tools of monetary policy can affect interest rates, the transmission mechanism of monetary policy to the economy and how this contributes towards the achievement of the domestic macroeconomic goals and living standards.
Students consider and evaluate the strengths and weaknesses of the aggregate demand policies in achieving the domestic macroeconomic goals and living standards.
Expanding the productive capacity of the economy and improving Australia’s international competitiveness is critical to ensuring that economic growth, low inflation and employment opportunities can be maintained both now and into the future. Students consider how the Australian Government utilises selected aggregate supply policies to pursue the achievement of the domestic macroeconomic goals and living standards over the long term.
Outcomes
· To discuss the operation of aggregate demand policies and analyse their intended effects on the achievement of the domestic macroeconomic goals and living standards.
· To discuss the operation of aggregate supply policies and analyse the effect of these policies on the domestic macroeconomic goals and living standards.
Assessment
· Maintaining a log of current events
· Analysis and interpretation of economic data, Government & Reserve Bank media releases and newspaper articles
· Written reports
· Tests
· Trial exams
Unit 3 & 4 Assessment
Unit 3 & 4 Coursework = 50%
Written Examination = 50%