Unit 1 - MICROECONOMICS

Microeconomics is the study of particular markets, and segments of the economy. This unit explores the theory that markets are an efficient way to allocate scarce resources, using real-world markets with an emphasis on the Australian economy. When the forces of demand and supply do not allocate and price resources in a way that society would regard as efficient, equitable or sustainable, market failure can occur. Students examine examples of market failure along with a range of government policy options that can be applied to achieve more desirable outcomes. Students are also introduced to the language of economics and the use of theories and models to explain and interpret economic events and issues.