VCE Units 1 & 2 - Economics
VCE Units 1 & 2 - Economics
Overview
Economics is a social science that explores the way humans behave and evaluates the decisions we make to meet the needs and wants of society. It looks at how and why consumers, businesses, governments, and other organisations choose to allocate resources, along with the consequences of these choices and their impact on living standards. Students will build a deeper understanding of how the world around them works and the role they play in the wider economy.
Unit 1 – Economic decision-making
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 consequences of human action.
Areas of Study:
- Thinking Like an Economist – Introductory economic concepts to develop understanding of what the economy is about and how it is working around us. The basic economic problem, the role of consumers and businesses in the economy and the factors that influence decision making.
- Decision Making in Markets – How Australia uses a market-based system to allocate resources. Explore different markets that exist in the Australian economy and use economic models and theories to understand and predict possible consequences of key changes in these markets.
- Behavioural Economics – Develop an understanding of how behavioural economics complements traditional economics. How behavioural economics can be used to inform policy and planning.
Unit 2 – Economic Issues and living standards
Students examine the concept of trade-offs, inclusive of the impact of pursuing economic growth on the environment and living standards, and the nature and consequences of current global issues in society. Students consider the link between economic activity and economic growth and investigate the importance of economic growth in raising living standards.
Areas of Study:
- Economic Activity – Meaning and importance of economic activity and the factors that affect economic activity. They investigate how economic growth is the outcome of economic activity and how economic growth is measured.
- Applied economic analysis of local, national, and international economic issues – Investigate two contemporary economic issues from a local, national and international perspective through an economic lens.
Forms of Assessment
Tests, Written reports, Presentations, End of semester exams
Prerequisites and Corequisites
It is an advantage to have completed Year 10 Economics and Business.