Studies, Economics: Economics

Two units for each of Year 11 and HSC NESA Developed Course

What background knowledge do I need to study Economics?

There is no requirement to have studied Commerce in Years 9 to 10. It is assumed that students have an interest in current affairs and the ability to think in an abstract manner.

Why study Economics?

Economic issues and decision making are part of the lives of every individual in modern society. This course focuses on how to understand and participate effectively in the economy. As technological change has increased the complexity of our global and domestic interactions, it has become necessary to understand the principles of economics. Issues related to global interactions of government, business and individuals, dominate the media and affect our ability to earn an income and distribute it. An understanding of economic relationships enhances our decisionmaking and success, as informed and innovative citizens.

Students learn to:

• comprehend the background and implications of contemporary economic issues • evaluate appropriate policies to resolve economic problems and issues • understand the impact of changes in interest rates and the Australian dollar on individuals, businesses and the economy • identify fluctuations in the global and Australian economies and their likely effects on standard of living and quality of life • understand reasons for changes in employment patterns • identify, using economic thinking, appropriate strategies to promote environmental sustainability

Course description:

The Year 11 course focuses on what is known as microeconomics. It examines the structure of the Australian economy through the behaviour of consumers, business and governments. Much of this behaviour is influenced by the operation of markets. Two key markets – the labour market and the financial market – are examined in detail. The Year 11 course provides an essential foundation for the HSC course.

The HSC course focuses on the operation and management of the Australian economy as a whole. This dimension of Economics is known as macroeconomics. It examines the external framework in which the Australian economy operates. The course investigates the impact of the global economy on the Australian economy and the link between economic issues and the management of the Australian economy.

Year 11 Course

• Introduction to Economics • Consumers and Business • Markets • Labour Markets • Financial Markets • Government in the Economy

HSC Course

10% of course time 10% of course time 20% of course time 20% of course time 20% of course time 20% of course time

• The Global Economy • Australia’s Place in the Global Economy • Economic Issues • Economic Policies and Management 25% of course time 25% of course time 25% of course time 25% of course time

Particular course requirements:

Mathematics is not required at the school level. The course contains some degree of mathematical analysis, however the focus of Economics at the school level is not primarily mathematical. If you are considering a career as an economist or in commerce, some universities (The University of Sydney) will now require 2 Unit Mathematics as a prerequisite into the economics and commerce faculties.

HSC examination structure:

There is one three-hour paper divided into four sections that allow for a balanced coverage of all topics in the HSC Course.

• Section I o Twenty multiple-choice questions • Section II o Four short-answer questions 20%

40%

• Section III o One extended response from two stimulus-based question options 20% • Section IV o One extended response from two question options 20%

How is Economics relevant to tertiary studies and career choice?

A multitude of employment opportunities have been opened through the study of economics. The major universities teach aspects of economics in their commerce/business/finance/global and international studies, and economics degrees. Students can enter the business world and pursue careers in accounting, banking and finance, risk management, economic forecasting, economic policy development, insurance, business law, taxation, resource management, marketing, international studies, tourism and hospitality management, and financial journalism.

Apart from specific career options, a foundation knowledge in Economics will be of significant advantage to you throughout your life. An understanding of the consequences of our decisions, the finite nature of all resources, and an appreciation of how our economic system operates, will aid every student in meeting and mastering life’s challenges.