Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2 by jacarandaaus

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

“c04EconomicActivity_PrintPDF” — 2022/5/28 — 13:00 — page 3 — #3

4.1.2 What you will learn KEY KNOWLEDGE • • • • • • • • • • • •

the purpose of economic activity the meaning of material and non-material living standards the five-sector circular flow model of the economy the business cycle types of economic indicators, such as leading, lagging and coincident the relationship between the business cycle and economic indicators the meaning and importance of aggregate demand and its components the factors that may affect the level of aggregate demand and the level of economic activity the meaning and importance of aggregate supply the factors that may affect the level of aggregate supply and the level of economic activity the measurement of economic growth using changes in real Gross Domestic Product (GDP) the potential benefits of economic growth, such as growth in material living standards, improved non-material living standards, employment opportunities and economic development • the potential costs of economic growth, including boom and bust economic cycles, congestion and pollution, environmental damage, potentially widening inequality and ‘affluenza’ • the limitations associated with using real GDP and real GDP per capita to measure changes in living standards • alternative measures of economic activity and living standards

Key skills

• define key economics concepts and terms and use them appropriately • construct and interpret economic models including the business cycle and the five-sector circular flow model of the economy • gather, synthesise and use economic data and information from a wide range of sources to analyse economic issues • identify trends, patterns, similarities and differences in economic data and other information • discuss the potential costs and benefits associated with increasing economic activity Source: VCE Economics Study Design (2023–2027) extracts © VCAA; reproduced by permission.

CO RR EC

Resources

Resourceseses

Digital document Key terms glossary (doc-37948)

TOPIC 4 Economic activity

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

Articles inside

8.8 Review

8.7 The responses by economic agents to improve environmental sustainability

8.4 The reasons why environmental sustainability is of importance to Australia and globally

8.3 Measures of the environmental sustainability of economic activity

8.5 The economic factors influencing the extent of environmental sustainability

8.6 Different perspectives about the issue of environmental sustainability

8.2 Definition and general nature of environmental sustainability

8.1 Overview

7.8 Review

7.7 The Australian government’s response to address inequality in the distribution of income and wealth

7.5 Economic factors affecting income and wealth inequality in Australia

7.6 Different perspectives about the distribution of income and wealth

7.4 The reasons why the distribution of income and wealth is an important issue

7.3 Measures of Australia’s distribution of income and wealth

7.2 Definition, nature and direction of income and wealth

7.1 Overview

6.8 Review

6.7 Economic responses and government policies involving international trade

6.6 Different perspectives about the issue of international trade

6.5 The economic factors influencing international trade

6.4 The benefits of international trade for Australia and the global economy

6.3 Measurement of Australia’s international transactions

6.2 Definition, nature and direction of international trade

6.1 Overview

5.8 Review

5.7 The Australian government’s economic responses to address changes in the labour market

5.6 Different perspectives about the changing labour market

5.3 Measures of Australia’s changing labour market

5.5 The economic factors influencing changes in Australia’s labour market

5.2 Definition and nature of the labour market

5.1 Overview

4.16 Review

standards

4.13 The potential costs of economic growth

4.12 The potential benefits of economic growth

4.10 Aggregate supply — its meaning, importance and factors affecting its level and economic activity

4.11 The measurement of economic growth using changes in Gross Domestic Product (GDP

4.8 BACKGROUND KNOWLEDGE: Overview of factors that may affect Australia’s level of economic activity

4.9 Aggregate demand — its meaning, importance and factors affecting its level and economic activity

4.6 Types of economic indicators

4.5 The business cycle

4.4 The five-sector circular flow model

4.3 The meaning of material and non-material living standards

3.5 Review

3.4 The effectiveness of strategies used by businesses to influence consumer behaviour

3.1 Overview

3.3 The effectiveness of strategies used by government to influence consumer behaviour

2.10 Review

2.9 Researching a contemporary Australian or global market

2.8 How changes in relative prices and profits affect Australia’s resource allocation

equilibrium price and quantity

2.3 BACKGROUND KNOWLEDGE: How markets make key economic decisions — the big picture

2.4 The law of demand and movements along the demand curve

2.5 The law of supply and movements along the supply curve

2.2 The nature of perfectly competitive and other types of markets in an economy

2.1 Overview

1.9 Review

1.5 Decision making in different economic systems

1.4 Making economic decisions

1.3 The basic economic problem of relative scarcity

1.8 Governments and their role as economic agents

1.6 Consumers and their behaviour as economic agents

1.1 Overview

1.7 Businesses and their behaviour as economic agents

1.2 What is economics?