DRAFT FOR CONSULTATION Economics Draft Subject Outline Stage 1 and Stage 2 Version 2.0 Draft for consultation Ref: A616291 12 June 20 July 2018
CONTENTS Introduction... 1 Subject Description... 4 Capabilities... 4 Aboriginal and Torres Strait Islander Knowledge, Cultures, and Perspectives... 8 Stage 1 Economics... 1 Learning Scope and Requirements... 9 Learning Requirements... 9 Content... 9 Assessment Scope and Requirements... 16 Evidence of Learning... 16 Assessment Design Criteria... 16 School Assessment... 17 Performance Standards... 19 Assessment Integrity... 21 Support Materials... 22 Subject-specific Advice... 22 Advice on Ethical Study and Research... 22 Stage 2 Economics... 23 Learning Scope and Requirements... 30 Learning Requirements... 30 Content... 30 Assessment Scope and Requirements... 40 Evidence of Learning... 40 Assessment Design Criteria... 40 School Assessment... 41 External Assessment... 43 Performance Standards... 46 Assessment Integrity... 47 Support Materials... 48 Subject-specific Advice... 48 Advice on Ethical Study and Research... 48
Stage 1 Economics Ref: A616291, 9.9 3 of 48
INTRODUCTION SUBJECT DESCRIPTION Economics is a 10-credit subject or a 20-credit subject at Stage 1, and a 20-credit subject at Stage 2. Economics develops a students economic thinking so that they can understand and appreciate how economics influences their lives, and understand how broader economic trends may affect them. They learn about the fundamental economic problem, the need for choice and for every choice there is an opportunity cost. They explore and analyse real world examples to develop, extend, and apply their skills, knowledge, understandings, and capabilities. Rather than the collection of facts, Economics is a collection of questions to be answered and the opportunity for students to discover that the obvious choice is not always the right answer. Students develop an understanding that economic thinking can offer insights into many of the issues society faces. They will find new ways of thinking about current events, personal and business decisions, as well as politics. At Stage 1 students study the four economics concepts of Scarcity, Choice, Cause and Effect, and Opportunity Cost. They apply their learning of these concepts to the context of Economics in Society to develop their understanding of the economic principles that underpin decision-making and that economic reasoning can provide insights into societal issues. Students develop and extend their economic inquiry skills through their learning. They formulate hypotheses, collect and analyse data and apply their understanding of economic theories and concepts. Students present their findings and recommendations, explaining the reasons for economic decisions and their impact on stakeholders. Ref: A616291, 9.9 4 of 48
CAPABILITIES The capabilities connect student learning within and across subjects in a range of contexts. The SACE identifies seven capabilities. They are: literacy numeracy information and communication technology (ICT) capability critical and creative thinking personal and social capability ethical understanding intercultural understanding. Literacy In this subject students extend and apply their literacy capability by, for example: using communication strategies to engage in collaborative projects and tasks presenting reasoned arguments and evidence-based conclusions interpreting, analysing, and critiquing primary and secondary economic information becoming competent and confident authors of economic information using accurate and appropriate terminology to explain economic concepts communicating economic information using a range of media. Numeracy In this subject students extend and apply their numeracy capability by, for example: using economic models to illustrate relationships and the impact of a change in a variable analysing data to explain what, how, and why economic activity occurs exploring various ways of displaying information in graphs and tables. Information and Communication Technology (ICT) Capability In this subject students extend and apply their (ICT) capability by, for example: locating and accessing economic information using digital technologies investigating the impact of technological innovation on the supply of resources in an economy using a range of digital technologies to extract, interpret, and analyse economic information presenting findings using multimodal approaches using digital technologies to work collaboratively on various projects. Ref: A616291, 9.9 5 of 48
Critical and Creative Thinking In this subject students extend and apply their critical and creative thinking capability by, for example: applying economic concepts theories and skills in a variety of contexts applying economic thinking to consider the cause and effect of economic decisions analysing the intended and unintended consequences of economic decisions on stakeholders analysing and evaluating different economic systems in how they allocate scarce resources evaluating economic decisions and their impact. Personal and Social Capability In this subject students extend and apply their personal and social capability by, for example: understanding that economic reasoning can offer an insight into many of the issues society must deal with appreciating how economics influences their daily lives investigating macroeconomic issues to understand the causes and effects of these on individuals investigating the factors influencing individual consumer choice predicting how the decisions they make today can affect their quality of life in their future collaborating with others to collect and interpret data considering how the needs of consumers, producers, government, and societies are impacted by markets sharing and discussing ideas about problems, progress, and innovative solutions listening to and respecting the perspectives of others planning effectively and managing time. Ref: A616291, 9.9 6 of 48
Ethical Understanding In this subject students extend and apply their ethical understanding capability by, for example: becoming aware that market outcomes may conflict with social and ethical outcomes developing an understanding that the pursuit of economic growth can lead to abuse of market power and environmental unsustainability acknowledging and referencing the ideas of others developing responsible attitudes towards using limited resources in a productive, ethical and sustainable way. Intercultural Understanding In this subject students extend and apply their intercultural understanding capability by, for example: exploring economic issues in local, national, and global contexts to expand knowledge of a diverse range of individuals, groups, and societies respecting and engaging with different cultural views and customs, and exploring these interactions recognising that engaging with different perspectives enhances own knowledge, understanding, and perspectives. Ref: A616291, 9.9 7 of 48
ABORIGINAL AND TORRES STRAIT ISLANDER KNOWLEDGE, CULTURES, AND PERSPECTIVES In partnership with Aboriginal and Torres Strait Islander communities, and schools and school sectors, the SACE Board of South Australia supports the development of high-quality learning and assessment design that respects the diverse knowledge, cultures, and perspectives of Indigenous Australians. The SACE Board encourages teachers to include Aboriginal and Torres Strait Islander knowledge and perspectives in the design, delivery, and assessment of teaching and learning programs by: providing opportunities in SACE subjects for students to learn about Aboriginal and Torres Strait Islander histories, cultures, and contemporary experiences recognising and respecting the significant contribution of Aboriginal and Torres Strait Islander peoples to Australian society drawing students attention to the value of Aboriginal and Torres Strait Islander knowledge and perspectives from the past and the present promoting the use of culturally appropriate protocols when engaging with and learning from Aboriginal and Torres Strait Islander peoples and communities. Ref: A616291, 9.9 8 of 48
LEARNING SCOPE AND REQUIREMENTS LEARNING REQUIREMENTS The learning requirements summarise the knowledge, skills, and understanding that students are expected to develop and demonstrate through their learning in Stage 1 Economics. In this subject, students are expected to: 1. understand and explore economic concepts in a variety of contexts 2. apply economic concepts, theories and skills in a variety of contexts 3. apply economic thinking to consider the cause and effect of economic decisions 4. apply collaborative and economic inquiry skills to explore economics in a variety of contexts 5. analyse the intended and unintended consequences of economic decisions on stakeholders CONTENT Stage 1 Economics is a 10-credit subject or a 20-credit subject. Economics is underpinned by four concepts that are studied through Economics in Society. Scarcity Cause and Effect Choice Opportunity Cost Ref: A616291, 9.9 9 of 48
The concepts provide the framework for the knowledge, understandings, skills, and capabilities that students develop, as illustrated in the following diagram. Economic Inquiry Skills In Stage 1 Economics, students use an inquiring, critical and thoughtful approach in their study and develop the ability to think like an economist. Students develop and apply the following Economic Inquiry Skills: Identify specific objectives, formulate hypotheses and ask relevant questions. Collect and analyse a range of qualitative and quantitative data. Analyse data to explain what, how, and why economic activity occurs. Use and illustrate economic concepts, data, theories, and terminology appropriately. Explain the rationale of economic decisions and their effects from the perspective of different stakeholders. Present reasoned arguments and evidence-based recommendations. Appropriately acknowledge and reference the ideas of others. Ref: A616291, 9.9 10 of 48
Context Economics in Society Economics in Society provides students with the context for understanding the economic principles which underlie the decisions individuals, businesses and governments make. Students develop an understanding that economic reasoning can offer an insight into many of the issues society must deal with. Students develop their economic thinking so that they can appreciate how economics influences their daily lives and understand how broader economic trends such as economic growth, inflation, employment and interest rates affect them. They learn about the fundamental economic problem, the need for choice and for every choice there is an opportunity cost. All stakeholders in an economic system are trying to maximise their satisfaction from limited resources. Students investigate how the key economic questions are answered. Consumers, through their purchasing decisions decide what is produced. Businesses decide how to produce and how much, while the price mechanism sets prices to determine who gets what. However, the market outcome may conflict with social and ethical outcomes and therefore governments must intervene. Students investigate the conflicting nature of personal economic wealth within a sustainable society. They develop an understanding that the pursuit of economic growth and security can lead to economic instability, insecurity, growing inequality, abuse of market power and environmental unsustainability. Suggested student learning could include: investigating how consumers and businesses respond to inflation, unemployment and higher interest rates comparing how different types of economies solve the economic questions analysing the strengths and weaknesses of free market and command economies investigating the impacts of the carbon taxes and emissions trading schemes used in Australia exploring alternative measures of economic growth, prosperity and satisfaction exploring social class and living standards in Australia analysing the economics of owning a car analysing how all the food a city needs comes from so many different places and is delivered on time, and at price, that people are willing to pay Ref: A616291, 9.9 11 of 48
Concepts Scarcity Economic theory assumes that scarcity of resources is a relative concept in terms of unlimited wants. Students explore and develop an understanding of the limited nature of resources. They are encouraged to investigate the impact of technological innovation, history and geography on the supply of resources in an economy and are encouraged to consider the impacts in both the short run and long run. The Production Possibilities model is used to understand how an economy allocates scarce resources and can increase its output through lower unemployment, the acquisition of additional resources and/or more efficient use of existing resources. Students analyse and evaluate different economic systems in how they allocate scarce resources. They are encouraged to develop responsible attitudes towards using limited resources in a productive, ethical and sustainable way. Suggested student learning could include: investigating the current local, national or global reserves of fossil fuels and other commodities exploring whether water scarcity could be the next global economic issue analysing the changing labour resources in Australia exploring why elite sports people receive high salaries, compared to those of a doctor or teacher discussing how time is a limited resource and investigating how online tools and mobile Apps help people make the most of limited time analysing whether electric cars are a good use of limited energy resources exploring how scarcity affects individuals at different income levels researching the spending habits of wealthy individuals and comparing them to individuals of lower socioeconomic status discussing why rising rents are both good and bad for the economy exploring how businesses manipulate scarcity to maximise revenues developing personal budgets to maximise satisfaction at different life stages investigating how technology can change the scarcity of commodities exploring the issue of food scarcity and the problem of distribution analysing how nations have increased their economic wealth through the acquisition of more resources. Ref: A616291, 9.9 12 of 48
Choice Consumers are free to choose how they maximise their satisfaction, and this consumer sovereignty influences what firms produce. There is an assumption that consumers are rational and respond predictably to incentives; however they sometimes make decisions based on their intuition rather than on evidence and research. Students investigate the factors influencing individual consumer choice. Students develop an understanding that businesses make choices about production in pursuit of profit maximisation. They explore why competitive markets should give the most choice, and consider ways that governments can intervene to influence the choices made by consumers and businesses. Students develop an understanding that consumers, business and governments have to make choices. They develop an understanding of the factors that are considered when making those choices and the impact on decision making. Students explore the future implications of the current choices made by individuals, firms and governments. Suggested student learning could include: exploring the source of incomes in Australia investigating the factors which influence spending and/or saving for individuals analysing the choice of renting versus buying a home discussing the choices young people have to make for their post school lives; work or further study exploring which university degree has the best return on investment investigating elasticity of demand and supply to determine how changes in prices affect choices analysing the impacts of businesses including carbon offset into their pricing models analysing a particular market and assessing the competition and choice available exploring how perceptions of economic growth, rather than statistics, data and evidence influences behaviour and choices exploring how governments influence choice through legislation, taxes, subsidies, incentives and other nudge economics analysing how online comparison tools help consumers compare the price of different items. Opportunity Cost Students explore the concept of trade-offs and develop an understanding of how opportunity cost can help them make better decisions. They predict how the decisions they make today can affect their quality of life in their future. Ref: A616291, 9.9 13 of 48
The Production Possibility Frontier (PPF) model is used to determine opportunity cost. Students analyse this model and explore how opportunity cost can be measured using quantitative and qualitative techniques. Students investigate why businesses and governments consider opportunity cost. They apply cost-benefit analysis tools to assess business decisions. Students research government budgets to examine the opportunity costs governments face when attempting to achieve their economic and social goals. Suggested student learning could include: investigating how students spend and value their time analysing the factors that influence why people save money exploring the merits of buying insurance examining the trade-offs businesses consider when making a significant investment decision such as implementing new technology or making staff redundant exploring how businesses estimate future benefits of investment decisions analysing the impacts of government expenditure decisions exploring the economics of why fast food outlets offer larger serves discussing the trade-off between working long hours for more money or more leisure time investigating the opportunity cost when choosing between career and family exploring whether speeding tickets should be means tested. Cause and Effect Students explore economic relationships and develop an understanding of reasons behind decisions and the effects of those decisions on individuals, businesses and the economy. The effects of decisions can often be critiqued by examining the idea of winners and losers. Students analyse data to discover trends and relationships between variables. Economic models are used to illustrate relationships and the impact of a change in a variable. Students use the price mechanism model to understand the causes and effects of changes in prices, and supply and demand in markets. Students use the 5-sector circular flow of income model to understand the relationships between different components of the economy and analyse the impact of changes in one sector of the economy. Using the business cycle model, students investigate macroeconomic issues to understand the causes and effects of these on individuals, businesses and society. Ref: A616291, 9.9 14 of 48
Activities could include: analysing why concert and festival tickets are so expensive investigating the impact of depreciation of currency on the cost of overseas holidays and the wider impacts on trade and the economy exploring why governments should spend money investigating how the development of online technologies has transformed ticket scalping explaining how the price mechanism operates in online market places analysing why living standards vary between countries investigating why youth unemployment is much higher than the national average analysing the impacts of high youth unemployment on individuals, businesses and governments now and in the future investigation solutions to reducing youth unemployment investigating the price inflation of fast food since they established in Australia analysing the causes of structural change in the Australian economy and the impacts of this on individuals, consumers and business exploring situations when the market outcome may not be the best outcome for society. Ref: A616291, 9.9 15 of 48
ASSESSMENT SCOPE AND REQUIREMENTS Assessment at Stage 1 is school based. EVIDENCE OF LEARNING The following assessment types enable students to demonstrate their learning in Stage 1 Economics Assessment Type 1: Concepts and Skills Assessment Type 2: Economic Project For a 10-credit subject, students should provide evidence of their learning through four assessments. Each assessment type should have a weighting of at least 20%. Students undertake: three Concepts and Skills tasks one Economic Project. For a 20-credit subject, students should provide evidence of their learning through eight assessments. Each assessment type should have a weighting of at least 20%. Students undertake: six Concepts and Skills tasks two Economic Project tasks. ASSESSMENT DESIGN CRITERIA The assessment design criteria are based on the learning requirements and are used by teachers to: clarify for the student what he or she needs to learn design opportunities for the student to provide evidence of his or her learning at the highest possible level of achievement The assessment design criteria consist of specific features that: students should demonstrate in their learning teachers look for as evidence that students have met the learning requirements For this subject the assessment design criteria are: Understanding Application Analysis Ref: A616291, 9.9 16 of 48
The specific features of these criteria are described below. The set of assessments, as a whole, must give students opportunities to demonstrate each of the specific features by the completion of study of the subject. Understanding U1 understanding and exploration of economic concepts in a variety of contexts Application AP1 application of economic concepts, theories and skills in a variety of contexts AP2 application of economic thinking to consider the cause and effect of economic decisions AP3 application of collaborative and/or Economics inquiry skills to explore economics in a variety of contexts Analysis A1 analysis of the intended and unintended consequences of economic decisions on stakeholders SCHOOL ASSESSMENT Assessment Type 1: Concepts and Skills For a 10-credit subject, students undertake three Concepts and Skills tasks Students demonstrate their application of economic concepts, theories and skills in a variety of contexts and consider the cause and effect of economic decisions. Tasks may include, but are not limited to: a source analysis a multimodal report a podcast a blog an essay an oral presentation Together, the three assessments comprise a maximum of 2400 words if written, or the equivalent in oral or multimodal form, where six minutes is equivalent to 1000 words. For this assessment type, students provide evidence of their learning primarily in relation to the following assessment design criteria: Understanding Application Analysis Ref: A616291, 9.9 17 of 48
Assessment Type 2: Economic Project For a 10-credit subject, students undertake one Economic Project. Students explore an economic context in depth and develop an inquiry through the collection and analysis of quantitative and qualitative data. Students apply economic concepts and skills to document their inquiry process, and present their findings. The project is in two parts: Part 1: Inquiry and Source Analysis Students plan, conduct and document their inquiry. In this section, students demonstrate evidence of: identifying specific objectives, formulating hypotheses and asking relevant questions analysing data to explain what, how, and why economic activity occurs using and illustrating economic concepts, data, theories, and terminology appropriately Students analyse and critique sources such as statistics, graphs, journals, newspapers, official reports, case studies, film, cartoons, and articles. Students explicitly provide evidence of their collaboration with others, including self and peer assessment. They present a summary of their annotations which may be in dot-point or note form, presented orally or multi-modal form to a maximum of 600 words or 4 minutes. Part 2: Findings and Recommendations Students present their findings and recommendations from their inquiry. The findings and recommendations may be presented in written, oral, or multimodal form. In whichever form, the findings and recommendations should enable students to: explain the rationale of economic decisions and their effects from the perspective of different stakeholders present reasoned arguments and evidence-based conclusions acknowledging and referencing the ideas of others The findings and recommendations should be a maximum of 800 words if written, or 5 minutes. Ref: A616291, 9.9 18 of 48
For this assessment type, students provide evidence of their learning primarily in relation to the following assessment design criteria: Understanding Application Analysis. PERFORMANCE STANDARDS The performance standards describe five levels of achievement, A to E. Each level of achievement describes the knowledge, skills, and understanding that teachers refer to in deciding how well a student has demonstrated his or her learning on the basis of the evidence provided. During the teaching and learning program the teacher gives students feedback on their learning, with reference to the performance standards. At the student s completion of study of a subject, the teacher makes a decision about the quality of the student s learning by: referring to the performance standards taking into account the weighting of each assessment type assigning a subject grade between A and E. Ref: A616291, 9.9 19 of 48
Performance Standards for Stage 1 Economics - Understanding Application Analysis A Comprehensive understanding and insightful exploration of economic concepts in a variety of contexts Perceptive application of economic concepts, theories and skills in a variety of contexts Insightful application of economic thinking to consider the causes and effects of economic decisions Perceptive analysis of the intended and unintended consequences of economic decisions on stakeholders Discerning use of collaborative and/or inquiry skills to explore economics in a variety of contexts B Some depth of understanding and thoughtful exploration of economic concepts in a variety of contexts Thoughtful application of economic concepts, theories and skills in a variety of contexts Clear and logical application of economic thinking to consider the causes and effects of economic decisions Well-considered analysis of the intended and unintended consequences of economic decisions on stakeholders Well-considered use of collaborative and/or inquiry skills to explore economics in a variety of contexts C Understanding and considered exploration of economic concepts in a variety of contexts Application of economic thinking to consider the causes and effects of economic decisions Considered application of economic thinking to consider the causes and effects of economic decisions Considered analysis of the intended and unintended consequences of economic decisions on stakeholders Effective use of collaborative and/or inquiry skills to explore economics in a variety of contexts D Recognition and basic understanding of economic concepts in a context Basic application of economic thinking to describe some causes and effects of economic decisions Description of one or more intended or unintended consequence of an economic decision on stakeholders Use of some economic thinking to consider some causes and effects of an economic decision Use of collaborative and/or inquiry skills to explore economics in a variety of contexts E Awareness of some economic concepts Emerging recognition of an economic concept, theory or skill Attempted use of economic thinking to consider some causes and/or effects of an economic decision Attempted description of one intended or unintended consequence of an economic decision on stakeholders Attempted use of collaborative and/or inquiry skills Ref: A616291, 9.9 20 of 48
ASSESSMENT INTEGRITY The SACE Assuring Assessment Integrity Policy outlines the principles and processes that teachers and assessors follow to assure the integrity of student assessments. This policy is available on the SACE website (www.sace.sa.edu.au) as part of the SACE Policy Framework. The SACE Board uses a range of quality assurance processes so that the grades awarded for student achievement in the school assessment are applied consistently and fairly against the performance standards for a subject, and are comparable across all schools. Information and guidelines on quality assurance in assessment at Stage 1 are available on the SACE website (www.sace.sa.edu.au). Ref: A616291, 9.9 21 of 48
SUPPORT MATERIALS SUBJECT-SPECIFIC ADVICE Online support materials are provided for each subject and updated regularly on the SACE website (www.sace.sa.edu.au). Examples of support materials are sample learning and assessment plans, annotated assessment tasks, annotated student responses, and recommended resource materials. ADVICE ON ETHICAL STUDY AND RESEARCH Advice for students and teachers on ethical study and research practices is available in the guidelines on the ethical conduct of research in the SACE on the SACE website (www.sace.sa.edu.au). Ref: A616291, 9.9 22 of 48
Stage 2 Economics Ref: A616291, 9.9 23 of 48
INTRODUCTION SUBJECT DESCRIPTION Economics is a 20-credit subject at Stage 1, and a 20-credit subject at Stage 2. Economics develops a students economic thinking so that they can understand and appreciate how economics influences their lives, and understand how broader economic trends may affect them. They learn about the fundamental economic problem, the need for choice and for every choice there is an opportunity cost. They explore and analyse real world examples to develop, extend, and apply their skills, knowledge, understandings, and capabilities. Rather than the collection of facts, Economics is a collection of questions to be answered and the opportunity for students to discover that the obvious choice is not always the right answer. Students develop an understanding that economic thinking can offer insights into many of the issues society faces. They will find new ways of thinking about current events, personal and business decisions, as well as politics. At Stage 2, students use an inquiring, critical and thoughtful approach in their study to develop the ability to think like an economist. They develop insights into Econometrics, Microeconomics, Macroeconomics, and Game Theory, providing students with the foundational knowledge and skills to apply their economic thinking into economics in a variety of contexts. Students research, analyse, evaluate, and apply economic models that are expressed in graphical and/or diagrammatic form. They explore economic relationships and develop an understanding of reasons behind decisions and the effects of those decisions on individuals, businesses and the economy. Students develop and extend their economic inquiry skills through their learning. They formulate hypotheses, collect and analyse data and apply their understanding of economic theories and concepts. Students present their findings and recommendations, explaining the reasons for economic decisions and their impact on stakeholders Ref: A616291, 9.9 24 of 48
CAPABILITIES The capabilities connect student learning within and across subjects in a range of contexts. The SACE identifies seven capabilities. They are: literacy numeracy information and communication technology (ICT) capability critical and creative thinking personal and social capability ethical understanding intercultural understanding. Literacy In this subject students extend and apply their literacy capability by, for example: using communication strategies to engage in collaborative projects and tasks presenting reasoned arguments and evidence-based conclusions interpreting, analysing, and critiquing primary and secondary economic information becoming competent and confident authors of economic information using accurate and appropriate terminology to explain economic concepts communicating economic information using a range of media determining the relevance and reliability of sources evaluating the advantages and disadvantages of displaying information for a range of purposes and audiences. Numeracy In this subject students extend and apply their numeracy capability by, for example: analysing data to discover trends and relationships between variables using economic models to illustrate relationships and the impact of a change in a variable exploring how data can be measured using quantitative and qualitative techniques analysing data to explain what, how, and why economic activity occurs exploring various ways of displaying information in graphs and tables becoming familiar with the notion of linear regressions, and their interpretations through tables and graphs Ref: A616291, 9.9 25 of 48
applying statistical concepts such as mean, median and variance and exploring the difference between causality and correlation. Information and Communication Technology (ICT) Capability In this subject students extend and apply their (ICT) capability by, for example: locating and accessing economic information using digital technologies investigating the impact of technological innovation on the supply of resources in an economy using a range of digital technologies to extract, interpret, and analyse economic information using digital technologies to analyse data to discover trends and relationships between variables presenting findings using multimodal approaches using digital technologies to work collaboratively on various projects.. Critical and Creative Thinking In this subject students extend and apply their critical and creative thinking capability by, for example: applying economic concepts theories and skills in a variety of contexts applying economic thinking to consider the cause and effect of economic decisions understanding ways in which the behaviour of others is taken into consideration and incorporated into their own decision making process analysing the intended and unintended consequences of economic decisions on stakeholders applying cost-benefit analysis tools to assess business decisions analysing and evaluating different economic systems in how they allocate scarce resources explaining the rationale of economic decisions and their effects from the perspective of different stakeholders creating predictions about the effect of economic decisions on stakeholders exploring the elasticities experienced by producers and consumers and considering the effectiveness of markets in achieving desirable outcomes exploring the economic goals of governments and how these can be achieved in the economy exploring the ways governments can encourage businesses to innovate Ref: A616291, 9.9 26 of 48
analysing possible solutions to address environmental issues such as global warming and the preservation of biodiversity evaluating the impact of environmental decisions and considering possible solutions to help ensure that past environmental mistakes are not made again evaluating the effectiveness of past and present government trade policies on markets exploring the policies governments and central banks use to meet macroeconomic objectives exploring the ways poverty and inequalities are measured and how individuals and institutions are able to develop effective solutions to the problem investigating how sport and entertainment impact the fundamental economic questions. Personal and Social Capability In this subject students extend and apply their personal and social capability by, for example: investigating macroeconomic issues to understand the causes and effects of these on individuals investigating the factors influencing individual consumer choice predicting how the decisions they make today can affect their quality of life in their future collaborating with others to collect and interpret data considering how the needs of consumers, producers, government, and societies are impacted by markets developing skills in anticipating and predicting economic agents behaviour sharing and discussing ideas about problems, progress, and innovative solutions listening to and respecting the perspectives of others. Ethical Understanding In this subject students extend and apply their ethical understanding capability by, for example: becoming aware that market outcomes may conflict with social and ethical outcomes developing an understanding that the pursuit of economic growth can lead to abuse of market power and environmental unsustainability acknowledging and referencing the ideas of others evaluating the intended and unintended consequences of economic decisions on stakeholders from different perspectives Ref: A616291, 9.9 27 of 48
developing responsible attitudes towards using limited resources in a productive, ethical and sustainable way reflecting on consequences from the perspective of stakeholders, including ethical dimensions. Intercultural Understanding In this subject students extend and apply their intercultural understanding capability by, for example: investigating the markets that business products are sold in, including costs to sell in international markets exploring the environmental approaches of developing nations considering the effectiveness of international agreements in managing environmental issues critiquing the effectiveness of past and present government trade policies on markets analysing the cause and effect of different types of poverty and inequality in the world applying economic concepts, models, and skills in the context of International Economics. Ref: A616291, 9.9 28 of 48
ABORIGINAL AND TORRES STRAIT ISLANDER KNOWLEDGE, CULTURES, AND PERSPECTIVES In partnership with Aboriginal and Torres Strait Islander communities, and schools and school sectors, the SACE Board of South Australia supports the development of high-quality learning and assessment design that respects the diverse knowledge, cultures, and perspectives of Indigenous Australians. The SACE Board encourages teachers to include Aboriginal and Torres Strait Islander knowledge and perspectives in the design, delivery, and assessment of teaching and learning programs by: providing opportunities in SACE subjects for students to learn about Aboriginal and Torres Strait Islander histories, cultures, and contemporary experiences recognising and respecting the significant contribution of Aboriginal and Torres Strait Islander peoples to Australian society drawing students attention to the value of Aboriginal and Torres Strait Islander knowledge and perspectives from the past and the present promoting the use of culturally appropriate protocols when engaging with and learning from Aboriginal and Torres Strait Islander peoples and communities. Ref: A616291, 9.9 29 of 48
LEARNING SCOPE AND REQUIREMENTS LEARNING REQUIREMENTS The learning requirements summarise the knowledge, skills, and understanding that students are expected to develop and demonstrate through their learning in Stage 2 Economics. In this subject, students are expected to: 1. understand, interpret and apply economic concepts, theories, and models in a variety of contexts 2. analyse economic data, models and theories to make recommendations 3. evaluate the intended and unintended consequences of economic decisions on stakeholders 4. apply collaborative and economic inquiry skills to explore economics in a variety of contexts 5. apply economic thinking to make recommendations. CONTENT Stage 2 Economics is a 20-credit subject underpinned by four key concepts: Scarcity Choice Opportunity Cost Cause and Effect These concepts are integrated into the learning and assessment requirements of Stage 2 Economics. Ref: A616291, 9.9 30 of 48
Students develop and apply their understanding of these concepts through the following sections: Thinking like an Economist Context Studies Students will study Thinking like an Economist Two or more Context Studies Teachers select Context Studies based on the needs and interests of the student cohort. Teachers may choose the depth and breadth for each Context Study. Students apply the relevant economic concepts, theories, models and skills from Thinking like an Economist when exploring each Context Study. Ref: A616291, 9.9 31 of 48
Economic Inquiry Skills In Economics, students use an inquiring, critical and thoughtful approach in their study and develop the ability to think like an economist. Students develop and apply the following Economic Inquiry Skills: Identify specific objectives, formulate hypotheses and ask relevant questions. Collect and analyse a range of qualitative and quantitative data. Analyse data to explain what, how, and why economic activity occurs. Apply mathematical and statistical tools to test hypotheses Use and illustrate economic concepts, data, theories, models and terminology appropriately. Evaluate economic decisions and their impact. Explain the rationale of economic decisions and their effects from the perspective of different stakeholders. Evaluate different perspectives on economic issues, policies and models. Predict the effect of economic decisions on stakeholders. Present reasoned arguments and evidence-based recommendations. Appropriately acknowledge and reference the ideas of others. Thinking like an Economist Thinking like an Economist provides students with the foundational knowledge and skills to apply economic thinking to inquire into economics in a variety of contexts. Econometrics Students use mathematical and statistical tools to analyse data and to test hypotheses. Using data, students familiarise themselves with the notion of linear regressions, and their interpretations through tables and graphs. They understand and apply statistical concepts such as Mean Median Variance Standard deviation Quantiles Correlation Students explore the difference between causality and correlation. Students use appropriate graphs, diagrams and tables to display results and to make recommendations from the analysis. Ref: A616291, 9.9 32 of 48
Microeconomics Students explore different market structures, and how they relate to consumers and producers. They explore the features of: Perfect competition Monopolistic competition Oligopoly Monopoly Students analyse the interaction between consumers and producers in a market, as expressed in demand and supply diagrams. They use linear equations in supply and demand curves to determine changes in price; the effects on quantity trade; determine equilibrium price and quantity. Students explore price elasticities of producers and consumers, expressed as price elasticity of demand and price elasticity of supply. Using the total revenue method, students determine pricing behavior of producers. Students explore the impact of government intervention, including price ceiling, price floor, tax and subsidy, on consumer and producer surplus and in creating deadweight loss. Students analyse and evaluate the intended and unintended consequences of economic decisions on stakeholders. Macroeconomics Students explore the notion of the macroeconomic objectives; Full Employment of Labour, Price Stability and Economic Growth and their appropriate indicators. Full employment unemployment rate and labour force participation rate Price Stability - the percentage change in the consumer price index (note that details of the construction of the consumer price index are not required) Economic Growth - the percentage change in real gross domestic product (GDP), GDP measured by the expenditure method Students investigate the causes and the effects of the macroeconomic objectives and explore recent trends. Students apply the key (leading, coincidental and lagging) and composite indicators of economic performance to determine the phase an economy is in on the business cycle. Using the five-sector circular-flow model, students explore the components total expenditure, the role of financial institutions in the economy. Students explore the Ref: A616291, 9.9 33 of 48
effect of leakages and injections on the level of income and expenditure and examine the expenditure multiplier. Students examine the aggregate demand- aggregate supply model, including both short-run and long-run aggregate supply curves, and equilibrium in the model to determine output and price level. They critique the causes and effects of shifts on the aggregate demand- aggregate supply model. Game Theory Game theory is a framework which analyses the decision making process of interdependent agents. The study of Game theory develops students understanding of and skills in anticipating and predicting economic agents behaviour. Students learn to notice and understand ways in which the behaviour of others is taken into consideration and incorporated into their own decision making process. Students explore the duopoly market structure through the study of the concept of Game Theory. They identify the Nash equilibrium of 2x2 games and explore the concepts of pay-off, incentives and punishment. Students design games consisting of three components: a set of agents, a set of strategies, and a set of outcomes. They solve basic 2x2 games in simultaneous form and complete information games in extensive form. Students explain real life situations using game theoretic arguments and reflect on the consequences from the perspective of stakeholders, including ethical dimensions. Ref: A616291, 9.9 34 of 48
Context Studies Context Studies provide real world opportunities in which students can develop, extend, and apply the skills, knowledge, understandings, and capabilities. These are: Environment Through the examination of environmental decisions and the impact of their externalities, students analyse the connection between economics and the environment. They analyse possible solutions to address environmental issues such as global warming and the preservation of biodiversity. Students explore the environmental approaches of developing nations and consider the effectiveness of international agreements in managing environmental issues. Students evaluate the impact of environmental decisions and consider possible solutions for individuals, governments and institutions to help ensure that past environmental mistakes are not made again. Suggested student learning could include: examining the importance of resources and the economic impact of environmental disasters exploring the conflicts between macroeconomic objectives and environmental sustainability investigating the relationship between economic growth and an environmental issue such as air pollution, deforestation, desertification or reduction in bio-diversity evaluating the effectiveness of international agreements in addressing environmental issues evaluating strategies used by government to manage negative externalities that have occurred with high economic growth investigating the potential economic impacts of climate change evaluating market based solutions to protect the environment posing arguments for and against government subsidies for electric vehicles. Firms Firms utilise economic thinking in their daily operations. Students investigate how firms determine the resources they will use for production; consideration is given to productivity of labour and capital resources. Students explore where resources are purchased and how this is determined by firms. An understanding of decision making about costs is explored through cost curves in an authentic context. Ref: A616291, 9.9 35 of 48
Students explore the ways governments can encourage firms to innovate. They investigate the markets that products are sold in, including costs to sell in domestic or international markets. Suggested student learning could include: exploring ways a service firm implements labour productivity measures evaluating how a firm uses economic thinking in production and marketing using diagrams to show how firms maximise total revenue and profit (marginal costs = marginal revenue) analysing how firms manage costs in the short run and long run applying cost theory to a student run small enterprise using diagrams to show how firms achieve internal economies of scale investigating how firms measure efficiency exploring how firms maximise profit in different market structures investigating how governments support entrepreneurship analysing how firms are a source of economic growth. Globalisation and Trade Students analyse the benefits of free trade, and critique the effect trade has on consumers and producers. They critique the effectiveness of past and present government trade policies on markets, and analyse the costs and benefits to producers, consumers and society. Students apply economic thinking to explain the possible effects of implementing and removing of tariffs, quotas and subsidies on a supply-demand diagram. Suggested student learning could include: evaluating the impact of government trade policies on particular markets posing an argument for or against protectionism or free trade exploring the historical consequences of government trade policy, with application of economic theory exploring the change in the direction, composition and value of Australia s trade using absolute and comparative advantage theory to explain which goods a country should produce for export analysing the impacts of free trade on the economy, businesses and the individuals investigating how changes to the protection of an industry has impacted the economy, firms and individuals exploring the trend in regionalisation and the rise of trade blocs on trade investigating the objectives of the World Trade Organisation (WTO) and evaluating its success Ref: A616291, 9.9 36 of 48
evaluating the impacts of the methods of protection; tariffs, quota and subsidies, on an economy, producers and consumers analysing the impact of globalisation on an economy. Health Students investigate how scarce resources are allocated in the health industry. They explore the factors behind economic decisions, and how costs and benefits are measured objectively in the decision-making process. Students apply economic thinking to investigate issues of market failure in health economics such as asymmetric information, externality, provision of merit goods, and barriers to entry and evaluate the role of government in addressing market failure. Suggested student learning could include: posing arguments for and against the government provision of health or market-provided health care investigating the amount of government health care funding relative to the trends in health evaluating the effectiveness of government spending on health care in Australia investigating the decision models used in health care undertaking margin analysis of the impact of reducing patient length of stay in hospital analysing the factors influencing demand and supply in the health care market analysing the market structures found in health care. Managing the Economy Students apply economic thinking to understand and interpret how governments and central banks implement policies to create economic change and manage the economy. They critique the impact of these policies against macroeconomic objectives and develop an understanding of the consequences that policy decisions have on the macroeconomic objectives and the business cycle. Students explore the policies governments and central banks use to meet macroeconomic objectives and analyse the impact of demand management policies and supply management policies. They consider the problem of finding the right combination of economic policies, in the context of the current economic situation and current government policies. Students apply the aggregate demand aggregate supply model and the circular-flow model to predict the outcome of demand and supply management policies. They examine the problems that government may experience when implementing economic policy. Ref: A616291, 9.9 37 of 48