Economics Stage 6 Syllabus

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Content: Economics HSC Course

10.1 HSC Topic One The Global Economy

25% of indicative time
The focus of this study is the operation of the global economy and the impact of
globalisation on individual economies.

Outcomes
A student:
H1
demonstrates understanding of economic terms, concepts and relationships
H2
analyses the economic role of individuals, firms, institutions and governments
H3
explains the role of markets within the global economy
H4
analyses the impact of global markets on the Australian and global economies
H5
discusses policy options for dealing with problems and issues in contemporary
and hypothetical contexts
H6
analyses the impact of economic policies in theoretical and contemporary
Australian contexts
H7
evaluates the consequences of contemporary economic problems and issues
on individuals, firms and governments
H8
applies appropriate terminology, concepts and theories in contemporary and
hypothetical economic contexts
H9
selects and organises information from a variety of sources for relevance and
reliability
H10 communicates economic information, ideas and issues in appropriate forms
H11 applies mathematical concepts in economic contexts
H12 works independently and in groups to achieve appropriate goals in set
timelines.

Content
Students learn to:
Examine economic issues

examine the effects of globalisation on economic growth and the quality of life,
levels of unemployment, rates of inflation and external stability

assess the potential impact on the environment of continuing world economic

development

investigate the global distribution of income and wealth

assess the consequences of an unequal distribution of global income and wealth

discuss the effects of protectionist policies on the global economy

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Economics Stage 6 Syllabus

Apply economic skills

analyse statistics on trade and financial flows to determine the nature and extent
of global interdependence

assess the impact on the global economy of international organisations and

contemporary trading bloc agreements

evaluate the impact of development strategies used in a range of contemporary

and hypothetical situations.
Students learn about:
International economic integration

the global economy

Gross World Product

globalisation
trade in goods and services
financial flows
investment and transnational corporations
technology, transport and communication
international division of labour, migration
the international and regional business cycles

Trade, financial flows and foreign investment

the basis of free trade its advantages and disadvantages

role of international organisations WTO, IMF, World Bank, United Nations,

OECD

influence of government economic forums G20, G7/8

trading blocs, monetary unions and free trade agreements

advantages and disadvantages of multilateral (EU, APEC, NAFTA, ASEAN)
and bilateral agreements
Protection

reasons for protection infant industry argument, domestic employment,

dumping, defence

methods of protection and the effects of protectionist policies on the domestic

and global economy tariffs, subsidies, quotas, local content rules, export
incentives
Globalisation and economic development

differences between economic growth and economic development

distribution of income and wealth

income and quality of life indicators

developing economies, emerging economies, advanced economies

reasons for differences between nations

effects of globalisation

trade, investment and transnational corporations

environmental sustainability

the international business cycle.

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Economics Stage 6 Syllabus

Case study
Undertake a case study of the influence of globalisation on an economy other than
Australia, including an evaluation of the strategies used to promote economic growth
and development in this economy.

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Economics Stage 6 Syllabus

10.2 HSC Topic Two Australias Place in the Global Economy

25% of indicative time
The focus of this topic is an examination of Australias place in the global economy
and the effect of changes in the global economy on Australia.

Outcomes
A student:
H1
demonstrates understanding of economic terms, concepts and relationships
H2
analyses the economic role of individuals, firms, institutions and governments
H4
analyses the impact of global markets on the Australian and global economies
H5
discusses policy options for dealing with problems and issues in contemporary
and hypothetical contexts
H7
evaluates the consequences of contemporary economic problems and issues
on individuals, firms and governments
H8
applies appropriate terminology, concepts and theories in contemporary and
hypothetical economic contexts
H9
selects and organises information from a variety of sources for relevance and
reliability
H10 communicates economic information, ideas and issues in appropriate forms
H11 applies mathematical concepts in economic contexts
H12 works independently and in groups to achieve appropriate goals in set
timelines.

Content
Students learn to:
Examine economic issues

assess the impact of recent changes in the global economy on Australias trade
and financial flows

examine the effects of changes in trade and financial flows on Australias

economic performance

analyse the effects of changes in the value of the Australian dollar on the
Australian economy

discuss the impact of free trade and protection policies on the quality of life in
Australia

propose likely changes to the structure of industry within Australia as a result of

current trends in the global economy

Apply economic skills

calculate the main components of Australias balance of payments

analyse the relationship between the balance of the capital and financial account
and the net income balance

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Economics Stage 6 Syllabus

explain the relationship between the current account balance and the balance of
the capital and financial account
use supply and demand diagrams to explain how the value of a currency is
determined under different exchange rate systems
analyse the impact of changes in the components of the balance of payments on
the value of the Australian dollar

Students learn about:

Australias trade and financial flows
Value, composition and direction of Australias trade and financial flows

trends in Australias trade pattern

trends in financial flows debt and equity

Australias Balance of Payments

structure
Current Account, debits and credits
Capital and Financial Account

links between key Balance of Payments categories

trends in the size and composition of Australias Balance of Payments

international competitiveness, terms of trade, international borrowing, foreign
investment
effects of these trends on Australias Balance of Payments

Exchange rates

measurement of relative exchange rates

to other individual currencies
Trade Weighted Index

factors affecting the demand for and supply of Australian dollars

changes in exchange rates appreciation/depreciation

determination of exchange rates including fixed, flexible and managed rates

the influence of the Reserve Bank of Australia on exchange rates

the effects of fluctuations in exchange rates on the Australian economy

Free trade and protection

Australias policies regarding free trade and protection

Australias multilateral and bilateral free trade agreements (overview of two

examples of each type of agreement)

the implications of Australias policies for individuals, firms and governments

implications for Australia of protectionist policies of other countries and trading

blocs.

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Economics Stage 6 Syllabus

10.3 HSC Topic Three Economic Issues

25% of indicative time
The focus of this topic is the nature, causes and consequences of the economic
issues and problems that can confront contemporary economies.

Outcomes
A student:
H1
demonstrates understanding of economic terms, concepts and relationships
H2
analyses the economic role of individuals, firms, institutions and governments
H4
analyses the impact of global markets on the Australian and global economies
H7
evaluates the consequences of contemporary economic problems and issues
on individuals, firms and governments
H9
selects and organises information from a variety of sources for relevance and
reliability
H10 communicates economic information, ideas and issues in appropriate forms
H11 applies mathematical concepts in economic contexts
H12 works independently and in groups to achieve appropriate goals in set
timelines.

Content
Students learn to:
Examine economic issues

examine the arguments for and against increasing economic growth rates

investigate the economic and social problems created by unemployment

analyse the effects of inflation on an economy

discuss the effect of a continued current account deficit on an economy

investigate recent trends in the distribution of income in Australia and identify the
impact of specific economic policies on this distribution

analyse the economic and social costs of inequality in the distribution of income

examine the economic issues associated with the goal of ecologically

sustainable development

Apply economic skills

identify and analyse problems facing contemporary and hypothetical economies

calculate an equilibrium position for an economy using leakages and injections

determine the impact of the (simple) multiplier effect on national income

explain the implications of the multiplier for fluctuations in the level of economic
activity in an economy

calculate the unemployment rate and the participation rate using labour force
statistics

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Economics Stage 6 Syllabus

interpret a Lorenz curve and a Gini coefficient for the distribution of income in an
economy
use economic concepts to analyse a contemporary environmental issue
assess the key problems and issues facing the Australian economy.

Students learn about:

Economic issues in the Australian economy
Economic growth

aggregate demand and its components: Y = C+I+G+XM

injections and withdrawals (I+G+X; S+T+M)

the simple multiplier: k = 1/(1MPC)

measurement of growth through changes in real Gross Domestic Product

sources and effects of economic growth in Australia

increases in aggregate supply improvements in efficiency and technology

trends in business cycle

Unemployment

measurement
labour force
participation rate
unemployment rate

trends

types and causes

cyclical
structural
frictional
seasonal
underemployment
hidden
long term

non-accelerating inflation rate of unemployment (NAIRU)

main groups affected by unemployment

effects of unemployment economic and social costs

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Economics Stage 6 Syllabus

Inflation

measurement headline and underlying

trends

causes
demand inflation
cost inflation
imported inflation
inflationary expectations

positive and negative effects

External stability

measurement
Current Account Deficit (CAD) as a percentage of Gross Domestic Product
net foreign debt as a percentage of Gross Domestic Product
net foreign liabilities as a percentage of Gross Domestic Product
terms of trade
exchange rate
international competitiveness

trends

positive and negative causes and effects

Distribution of income and wealth

measurement Lorenz curve and Gini coefficient

sources of income as a percentage of household income

taxation, transfer payments and other assistance

sources of wealth

dimensions and trends, according to gender, age, occupation, ethnic background

and family structure

economic and social costs and benefits of inequality

Environmental sustainability

ecologically sustainable development

private and social costs and benefits externalities, market failure

public and private goods free riders

environmental issues:
preservation of natural environments
pollution, climate change
depletion of renewable and non-renewable resources.

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Economics Stage 6 Syllabus

10.4 HSC Topic Four Economic Policies and Management

25% of indicative time
This topic focuses on the aims and operation of economic policies in the Australian
economy and hypothetical situations.

Outcomes
A student:
H1
demonstrates understanding of economic terms, concepts and relationships
H2
analyses the economic role of individuals, firms, institutions and governments
H5
discusses alternative policy options for dealing with problems and issues in
contemporary and hypothetical contexts
H6
analyses the impact of economic policies in theoretical and contemporary
Australian contexts
H7
evaluates the consequences of contemporary economic problems and issues
on individuals, firms and governments
H9
selects and organises information from a variety of sources for relevance and
reliability
H10 communicates economic information, ideas and issues in appropriate forms
H11 applies mathematical concepts in economic contexts
H12 works independently and in groups to achieve appropriate goals in set
timelines.

Content
Students learn to:
Examine economic issues

analyse the opportunity cost of government decisions in addressing specific

economic problems or issues

investigate structural changes in the Australian economy resulting from

microeconomic policies
apply economic theory to explain how a government could address an economic

problem or issue in hypothetical situations

analyse alternative ways to finance a budget deficit

Apply economic skills

explain how governments are restricted in their ability to simultaneously achieve

economic objectives

use (simple) multiplier analysis to explain how governments can solve economic
problems

identify limitations of the effectiveness of economic policies

explain the impact of key economic policies on an economy

propose and evaluate alternative policies to address an economic problem in

hypothetical and the contemporary Australian contexts

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Economics Stage 6 Syllabus

explain, using economic theory, the general effects of macroeconomic and

microeconomic policies on an economy
select an appropriate policy mix to address a specific economic problem.

Students learn about:

Economic objectives in relation to:

economic growth and quality of life

full employment

price stability

external stability

environmental sustainability

distribution of income
Potential conflicts among objectives
Macroeconomic policies

rationale for macroeconomic policies stabilisation and shifts in aggregate

demand
Fiscal policy

Federal Government budgets and budget outcomes

effects of budgetary changes on resource use, income distribution and economic

activity

methods of financing deficits

use of a surplus
Monetary policy

purpose of monetary policy

implementation of monetary policy by the Reserve Bank of Australia

impact of changes in interest rates on economic activity and the exchange rate
Microeconomic policies

rationale for microeconomic policies including shifts in aggregate supply,

efficiency

effects of microeconomic policies on individual product and factor markets,

individual industries and the economy

regulation and deregulation competition policy

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Economics Stage 6 Syllabus

Labour market policies

role of national and state systems

the national system for determining

minimum employment standards
minimum wages
awards
enterprise agreements
employment contracts for high income earners

dispute resolution

arguments for and against the use of centralised, decentralised and

individualised methods of determining employment contracts

education, training and employment programs

National and global context for environmental management

regulations

market-based policies

targets

international agreements
Limitations of economic policies

time lags

global influences

political constraints
Policy responses and their effects in dealing with the economic objectives

economic growth and quality of life

full employment

price stability

external stability

distribution of income

environmental sustainability.

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