Unit 1: The Behaviour of Consumers and Businesses

Economics is interested in the way humans behave and the decisions made to meet the needs and wants of society. 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. Students investigate contemporary examples and case studies to enhance their understanding of the introductory economic concepts. Through close examination of key markets they gain insight into the factors that may affect the way resources are allocated in an economy and how market power can affect living standards.

Areas of study

• Thinking like and EconomistDecision making in Markets
• Decision making in Markets

There are two outcomes:

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

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

Unit 2: Contemporary Economic Issues

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. They investigate the importance of economic growth in terms of raising living standards and evaluate how achievement of this goal might result in degradation of the environment and the loss of key resources. 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.

Areas of study

• Economic growth, long-term economic prosperity and environmental sustainabilityEconomic efficiency and equityGlobal economic issues

• Economic efficiency and equityGlobal economic issues

• Global economic issues

There are three outcomes:

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

• 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.

• Explain the factors that may influence a global economic issue/s and evaluate potential consequences associated with actions to address the issue/s.

Unit 3: Australia’s Economic Prosperity

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 They investigate the factors that influence the level of aggregate demand and aggregate supply in the economy and use models and theories to explain how changes in these variables might influence the achievement of the Australian Government’s domestic macroeconomic goals and affect living standards. Students investigate the importance of international economic relationships in terms of their influence on Australia’s living standards.

Areas of study

• An introduction to microeconomics: the market system, resource allocation and government intervention Domestic economic goals ustralia and the world economy

• Domestic economic goals ustralia and the world economy

• Australia and the world economy

There are three 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, the Australian Government’s domestic macroeconomic goals and living standards in Australia.

Unit 4: Managing the Economy

The ability of the Australian Government to achieve its domestic macroeconomic goals has a significant effect on living standards in Australia. The Australian Government can utilise a wide range of policy instruments to influence these goals and to positively affect living standards. Area of Study 1 focuses on the role of aggregate demand policies in stabilising the business cycle to achieve the Australian Government’s domestic macroeconomic goals. In Area of Study 2 students consider how the Australian Government utilises aggregate supply policies to manage the Australian economy.

Areas of study

• Aggregate demand policies and domestic economic stabilityAggregate supply policies

• Aggregate supply policies

There are two 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.