Sample program: Unit 2A ECO and Unit 2BECO
Term 1 – Unit 2AECO
Week
Economic knowledge
1
Introduction to economics
 explain the concepts of the economic
problem, scarcity, opportunity cost and
the production possibility frontier
2
Nature of markets
 discuss the functions of an economic
system in addressing the key questions of
what, how, how much and for whom to
produce
 describe the characteristics of a market
economy
 distinguish between product and factor
markets
 distinguish between competitive and noncompetitive markets
Demand
 explain the law of demand
 demonstrate and explain the relationship
between individual and market demand
schedules and curves
 discuss the main factors affecting demand
i.e. price, income, population,
preferences, prices of substitutes and
complements, expected future prices
 demonstrate and explain how changes in
3
Economic reasoning and
interpretation
Analysis
 apply mathematical
techniques relevant to
market analysis including
constructing demand and
supply curves, the
production possibility
frontier, calculating
elasticities, calculating
consumer and producer
surplus.
Assessment
Analysis
 apply effective methods for
identifying relevant
information within sources
e.g. skimming and scanning
Analysis
 apply mathematical
techniques relevant to
market analysis including
constructing demand and
supply curves, the
production possibility
frontier, calculating
elasticities, calculating
consumer and producer
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Sample text
references
Discovering
Economics
2nd Edition
Greg Parry and
Steven Kemp
Tactic
Publications 2011
pp1-13
Parry and Kemp
pp13-14
pp23-25
Task 1
Data
interpretation/
Short response
Opportunity cost,
PPF and markets
Parry and Kemp
pp25-29
Internet
resources
Refer to the
documents ‘Web
Links for
Economics
Teaching 2012’
and
‘Web Links
(YouTube) for
Economics
Teaching 2012’
for these
resources.
price lead to an expansion or contraction
in the quantity demanded and changes in
non-price factors lead to an increase or
decrease in demand
4
5
Supply
 explain the law of supply
 demonstrate and explain the relationship
between individual and market supply
schedules and curves
 discuss the main factors affecting supply
i.e. factors of production, costs of
production, expected future prices,
number of suppliers, technology
 demonstrate and explain how changes in
price lead to an expansion or contraction
in the quantity supplied and changes in
non-price factors lead to an increase or
decrease in supply
Market equilibrium
 explain the concept of market equilibrium
 demonstrate and explain how shifts in
demand and supply curves cause
changes in market equilibrium
 explain the concepts of market clearing,
shortages and surpluses
 demonstrate and explain how the price
mechanism clears market surpluses and
shortages
surplus.
Communication
 apply appropriate economic
methods and models in
analysing market behaviour
and performance including
demand and supply
analysis.
Analysis
 apply mathematical
techniques relevant to
market analysis including
constructing demand and
supply curves, the
production possibility
frontier, calculating
elasticities, calculating
consumer and producer
surplus.
Communication
 apply appropriate economic
methods and models in
analysing market behaviour
and performance including
demand and supply
analysis.
Communication
 apply appropriate economic
methods and models in
analysing market behaviour
and performance including
demand and supply
analysis.

evaluate evidence from
collected economic
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Parry and Kemp
pp29-32
Parry and Kemp
pp32-38
6
7
Elasticity
 explain the concept of price elasticity of
demand
 calculate price elasticity of demand
 distinguish between goods that are price
elastic and price inelastic in demand
 outline the determinants of price elasticity
of demand
 demonstrate and explain the link between
price elasticity of demand and total
revenue
 explain the concepts of income elasticity
of demand, normal goods and inferior
goods
 explain the concept of cross elasticity of
demand
Elasticity
 discuss the significance of substitute and
complementary goods in relation to price,
income and cross elasticities of demand
 explain the concept of price elasticity of
supply
 distinguish between goods that are price
elastic and price inelastic in supply
 outline the determinants of price elasticity
of supply
 discuss the significance of price and
income elasticity for consumers, business
and government
information and data when
communicating findings and
justifying a conclusion.
Analysis
 apply mathematical
techniques relevant to
market analysis including
constructing demand and
supply curves, the
production possibility
frontier, calculating
elasticities, calculating
consumer and producer
surplus.
Communication
 apply appropriate economic
methods and models in
analysing market behaviour
and performance including
demand and supply
analysis.
Analysis
 apply mathematical
techniques relevant to
market analysis including
constructing demand and
supply curves, the
production possibility
frontier, calculating
elasticities, calculating
consumer and producer
surplus.
Communication
 evaluate evidence from
collected economic
information and data when
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Task 2
Data
interpretation/
Short response
Demand, supply,
and market
equilibrium
Parry and Kemp
pp47-61
Parry and Kemp
pp47-61
8
Market efficiency
 explain the concept of efficiency
 demonstrate and explain the benefits to
consumers from participating in a market
by applying marginal benefit and
consumer surplus
 demonstrate and explain the benefits to
producers from participating in a market
by applying marginal cost and producer
surplus
 demonstrate and explain the efficiency of
market equilibrium i.e. maximising total
surplus
 demonstrate and explain how under and
overproduction results in a deadweight
loss
9
Efficiency and applications
 explain the concept of equity (fairness)
 discuss the trade-off between efficiency
and equity
 demonstrate and explain the effects of
price and quantity restrictions in markets
by applying consumer and producer
surplus i.e. price ceilings and price floors,
quotas and licences
10
Consolidation week
communicating findings and
justifying a conclusion.
Analysis
 apply mathematical
techniques relevant to
market analysis including
constructing demand and
supply curves, the
production possibility
frontier, calculating
elasticities, calculating
consumer and producer
surplus.
Communication
 apply appropriate economic
methods and models in
analysing market behaviour
and performance including
demand and supply
analysis.
Communication
 apply appropriate economic
methods and models in
analysing market behaviour
and performance including
demand and supply
analysis.
 evaluate evidence from
collected economic
information and data when
communicating findings and
justifying a conclusion.
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Task 3
Data
interpretation/
Short response
Elasticity
Parry and Kemp
pp105-111
Parry and Kemp
pp112-117
Term 2 – Unit 2AECO and commence Unit 2BECO
Week
Economic knowledge
1
Market failure and externalities
 explain the concept of market failure
 analyse market failure i.e. positive and
negative externalities
Economic reasoning and
interpretation
Communication
 apply appropriate
economic methods and
models in analysing
market behaviour and
performance including
demand and supply
analysis.
Assessment
Task 4
Extended
response
Efficiency and equity
Sample text
references
Discovering
Economics
2nd Edition
Greg Parry and
Steven Kemp
Tactic Publications
2011
pp125-132

2
3
Public goods & common resources,
market power
 analyse market failure in terms of public
goods and common resources (tragedy of
the commons)
 analyse market failure in terms of market
power including:
o outline the factors that affect the
level of competition in a market i.e.
number of buyers, number of
sellers, barriers to entry, product
differentiation
o compare the impact of market
structures including competitive
markets, monopolies and
oligopolies
Market failure and government
 discuss the link between market failure
and the role of government
 discuss government policy options to
evaluate evidence from
collected economic
information and data
when communicating
findings and justifying a
conclusion.
Communication
 apply appropriate
economic methods and
models in analysing
market behaviour and
performance including
demand and supply
analysis.
Communication
 apply appropriate
economic methods and
models in analysing
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Parry and Kemp
pp132-136
Task 5
Extended
response
Market failure
Parry and Kemp
pp137-143
Internet
resources
Refer to the
documents ‘Web
Links for
Economics
Teaching 2012’
and
‘Web Links
(YouTube) for
Economics
Teaching 2012’ for
these resources.
correct market failure i.e. the use of taxes
and subsidies, assigning property rights
and regulating the use of common
resources, providing public goods and
services
market behaviour and
performance including
demand and supply
analysis.

4
5
Revision
Exams
6
7
Exams
Introduction to macroeconomics,
circular flow of income
 explain the relevance of the study of
macroeconomics
 distinguish between macroeconomics and
microeconomics
 explain the concept of the circular flow of
income and expenditure
 explain the concepts of total spending,
total output and total income and the
relationship between them
 explain the concepts of equilibrium,
leakages and injections in the circular flow
of income and expenditure
evaluate evidence from
collected economic
information and data
when communicating
findings and justifying a
conclusion.
Task 6
Examination
Analysis
 apply mathematical
techniques relevant to
macroeconomic analysis
including calculating the
inflation rate from CPI
data, the unemployment
rate and the participation
from labour force data,
calculating and
interpreting rates of
change in GDP,
constructing Lorenz
curves, calculating
marginal and average
rates of taxation.
Communication
 apply economic methods
and models to
demonstrate economic
activity e.g. the business
cycle, circular flow of
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Parry and Kemp
pp155-162
8
Circular flow analysis, aggregate
expenditure
 explain how changes in leakages and
injections can change the level of
equilibrium in the circular flow of income
model
 describe the components of aggregate
expenditure i.e. consumption, investment,
government spending, net exports
 identify the major factors affecting each of
the components of aggregate expenditure
9
Business cycle, economic indicators
 explain the concept of the business cycle
 outline the phases of the business cycle
 distinguish between leading indicators
(including share prices, building loan
approvals, new employment vacancies,
business and consumer confidence, and
stock/inventory levels); coincident
indicators (including retail sales, and new
car registrations); and lagging indicators
(including unemployment rates/levels and
inflation rate) of economic activity
Consolidation week
10
income, production
possibility curve,
investment demand
curve, the Lorenz curve.
 draw conclusions from
collected economic
information and data.
Communication
 apply economic methods
and models to
demonstrate economic
activity e.g. the business
cycle, circular flow of
income, production
possibility curve,
investment demand
curve, the Lorenz curve.
 draw conclusions from
collected economic
information and data.
Analysis
 apply effective methods
for identifying relevant
information within sources
e.g. skimming and
scanning.
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Parry and Kemp
pp162-174
Task 1
Data interpretation/
Short response
Circular flow of
income and
aggregate
expenditure
Parry and Kemp
pp197-203
Term 3 – Unit 2BECO
Week
Economic knowledge
1
Economic growth
 explain the concept of economic growth
 discuss the measurement of economic
growth
 evaluate Gross Domestic Product (GDP)
as a measure of economic welfare
 explain the determinants of economic
growth
 evaluate the costs and benefits of
economic growth
2
Economic growth
(continued)
3
Inflation
 explain the concept of inflation
 outline the measurement of inflation
 explain headline and underlying inflation
 explain the types of inflation i.e. demand
pull and cost push
 evaluate the costs of inflation and the
benefits of low inflation
Economic reasoning and
interpretation
Analysis
 apply mathematical
techniques relevant to
macroeconomic analysis
including calculating the
inflation rate from CPI
data, the unemployment
rate and the participation
from labour force data,
calculating and
interpreting rates of
change in GDP,
constructing Lorenz
curves, calculating
marginal and average
rates of taxation.
Communication
 draw conclusions from
collected economic
information and data.
Analysis
 apply mathematical
techniques relevant to
macroeconomic analysis
including calculating the
inflation rate from CPI
data, the unemployment
rate and the participation
from labour force data,
calculating and
interpreting rates of
change in GDP,
constructing Lorenz
curves, calculating
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Assessment
Sample text
references
Discovering
Economics
2nd Edition
Greg Parry and
Steven Kemp
Tactic Publications
2011
pp181-197
Parry and Kemp
pp181-197
Task 2
Extended
response
Economic growth
Parry and Kemp
pp215-226
Internet
resources
Refer to the
documents ‘Web
Links for
Economics
Teaching 2012’
and
‘Web Links
(YouTube) for
Economics
Teaching 2012’ for
these resources.
marginal and average
rates of taxation.
4
Inflation
(continued)
5
Unemployment
 explain the concepts of unemployment,
full employment, the natural rate of
unemployment, the participation rate,
underemployment
 outline the measurement of
unemployment
 discuss the types and causes of
unemployment including cyclical,
structural, frictional evaluate the effects of
unemployment
 discuss the implications of full
employment for the economy
 explain the possible short-term trade-off
between unemployment and inflation
6
Unemployment
(continued)
7
Australia in the global economy
 outline Australia’s place in the global
economy
 outline the general structure of the
balance of payments accounts i.e. the
current account and the capital and
financial account
 recognise the issues stemming from
Australia’s current account deficit
Communication
 draw conclusions from
collected economic
information and data.
Analysis
 apply mathematical
techniques relevant to
macroeconomic analysis
including calculating the
inflation rate from CPI
data, the unemployment
rate and the participation
from labour force data,
calculating and
interpreting rates of
change in GDP,
constructing Lorenz
curves, calculating
marginal and average
rates of taxation.
Parry and Kemp
pp215-226
Communication
 draw conclusions from
collected economic
information and data.
Analysis
 apply effective methods
for identifying relevant
information within
sources
Parry and Kemp
pp233-241
Communication
 draw conclusions from
collected economic
information and data.
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Parry and Kemp
pp233-241
Task 3
Extended
response
Inflation and
unemployment
Parry and Kemp
pp247-259
8
Australia in the global economy
(continued)
9
Distribution of income
 distinguish between the concepts of
income and wealth
 explain how the Lorenz curve represents
inequality in the distribution of income and
wealth
10
Consolidation week
Communication
 draw conclusions from
collected economic
information and data.
Analysis
 apply mathematical
techniques relevant to
macroeconomic analysis
including calculating the
inflation rate from CPI
data, the unemployment
rate and the participation
from labour force data,
calculating and
interpreting rates of
change in GDP,
constructing Lorenz
curves, calculating
marginal and average
rates of taxation.
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Parry and Kemp
pp247-259
Parry and Kemp
pp271-276
Task 4
Data interpretation/
Short response
Australia in the
global economy and
the distribution of
income
Term 4 – Unit 2BECO
Week
Economic knowledge
1
2
3
The government’s role
 outline the role of the government in a
modified market economy i.e. regulation
of business enterprises, stabilising the
business cycle, redistributing income
through taxation and spending and the
provision of goods and services
 describe the size of the government
sector in the Australian economy
currently, over time, and relative to other
economies
 outline the size and composition of
government revenue and spending in
Australia at Commonwealth, state and
local government level
Australia’s taxation system
 describe the main types of
Commonwealth taxes including personal
and income tax, goods and services tax,
company tax, capital gains tax, fringe
benefits tax and excise duty
 distinguish between direct/indirect
taxation;
progressive/regressive/proportional
taxation; taxes on income/expenditure
 explain the concepts of equity, efficiency
and simplicity in the context of Australia’s
taxation system
Current state of the Australian economy
 outline the internal economic objectives of
the government i.e. sustainable economic
growth, low unemployment (full
Economic reasoning and
interpretation
Analysis
 apply effective methods
for identifying relevant
information within
sources.
Analysis
 apply mathematical
techniques relevant to
macroeconomic analysis
including calculating the
inflation rate from CPI
data, the unemployment
rate and the participation
from labour force data,
calculating and
interpreting rates of
change in GDP,
constructing Lorenz
curves, calculating
marginal and average
rates of taxation.
Analysis
 select and organise
sources of economic data
and information on
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Assessment
Sample text
references
Discovering
Economics
2nd Edition
Greg Parry and
Steven Kemp
Tactic
Publications 2011
pp267-271
pp276-282
Parry and Kemp
pp282-288
Task 5
Data
interpretation/Short
response
Parry and Kemp
pp295-302
Internet
resources
Refer to the
documents ‘Web
Links for
Economics
Teaching 2012’
and
‘Web Links
(YouTube) for
Economics
Teaching 2012’
for these
resources.
4
employment), low inflation (price stability),
a more equitable distribution of income
and the efficient allocation of resources
 outline the economic objective of external
stability in terms of monitoring the size of
the Current Account Deficit
 discuss Australia’s economic performance
using a range of economic indicators
 identify and account for recent trends in
inflation, unemployment, economic growth
and the current account balance in
Australia
 discuss the impact of domestic and
international events on the Australian
economy
Current state of the Australian economy
(continued)
5
6
7
Revision
Revision
Exams
8
Exams

macroeconomic indicators
and policies.
apply effective methods
for identifying relevant
information within
sources.
Taxation
Communication
 draw conclusions from
collected economic
information and data.
Sample Economics Stage 2 program and assessment outline for teaching in 2012
Plain English
Economics Topic
Updates 2012
Task 6
Examination
(2A and 2B)