VCE Units 3 & 4 - Economics
VCE Units 3 & 4 - Economics
Overview
Economics examines the role of individuals, businesses, governments, and other organisations in the decision making about the allocation of resources, the production of goods and services and the affect that these decisions may have on material and non-material living standards. Developing students’ understanding of Economics will enable them to appreciate the reasons behind these decisions and the intended and unintended consequences.
Unit 3 – Australia’s living standards
In this unit students investigate the role of the market in allocating resources and examine the factors that affect the price and quantity traded for a range of goods and services. Students develop an understanding of the key measures of efficiency and how market systems might result in efficient outcomes
Areas of Study:
- An Introduction to Microeconomics: The Market System, Resource Allocation and Government Intervention – Investigate the role of the market in answering the key economic questions of what and how much to produce, how to produce and for whom to produce.
- Domestic Macroeconomic Goal – Investigate the Australian Government’s domestic macroeconomics goals supporting living standards, including strong and sustainable economic growth, full employment and low and stable inflation (price stability).
- Australia and the international economy – Examine the reasons for international trade, such as the exchange of goods and services and the movement of savings and investment capital, and how these transactions might affect living standards.
Unit 4 – Managing the economy
This unit focuses on the role of aggregate demand policies in stabilising the business cycle to achieve the domestic macroeconomic goals. Students develop an understanding of how the Australian Government can alter the composition of budgetary outlays and receipts to affect the level of aggregate demand, the achievement of domestic macroeconomic goals and living standards directly and indirectly.
Areas of Study:
- Aggregate Demand Policies and Domestic Economic Stability – Examine how the Reserve Bank of Australia and the Australian Government can utilise monetary and budgetary policy respectively to affect the level of aggregate demand in the economy.
- Aggregate Supply Policies – Examine the role of aggregate supply policies in creating a stronger macroeconomic environment so that the domestic macroeconomic goals can be more easily achieved.
Forms of Assessment
- Structured Questions
- Multiple Choice Questions
- Case Study Analysis
- Data Analysis
Prerequisites and Corequisites
Studemts are expected to have satisfied the requirements of Units 1 & 2 Economics.