ECONOMICS
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
IMPORTANT INFORMATION
Syllabus review
Once a course syllabus has been accredited by the School Curriculum and Standards Authority, the implementation of that syllabus will
be monitored by the Course Advisory Committee. This committee can advise the Board of the Authority about any need for syllabus
review. Syllabus change deemed to be minor requires schools to be notified of the change at least six months before implementation.
Major syllabus change requires schools to be notified 18 months before implementation. Formal processes of syllabus review and
requisite reaccreditation will apply.
Other sources of information
The Western Australian Certificate of Education (WACE) Manual contains essential information on assessment, moderation and
examinations that need to be read in conjunction with this course.
The School Curriculum and Standards Authority website www.scsa.wa.edu.au and extranet provides support materials including sample
programs, course outlines, assessment outlines, assessment tasks with marking keys, past WACE examinations with marking keys,
grade descriptions with annotated student work samples and standards guides.
WACE providers
Throughout this document the term ‘school’ is intended to include both schools and other WACE providers.
Currency
This document may be subject to minor updates. Users who download and print copies of this document are responsible for checking
for updates. Advice about any changes made to the document is provided through the Authority communication processes.
Copyright
© School Curriculum and Standards Authority, 2007.
This document—apart from any third party copyright material contained in it—may be freely copied or communicated for non-commercial purposes by educational institutions,
provided that it is not changed in any way and that the School Curriculum and Standards Authority is acknowledged as the copyright owner.
Copying or communication for any other purpose can be done only within the terms of the Copyright Act or by permission of the School Curriculum and Standards Authority.
Copying or communication of any third party copyright material contained in this document can be done only within the terms of the Copyright Act or by permission of the copyright
owners.
2008/16090[v16]
2
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Rationale
Economics investigates the choices which all
people, groups and societies face as they confront
the ongoing problem of satisfying their unlimited
wants with limited resources. Economics aims to
analyse and understand the allocation, utilisation
and distribution of scarce resources that determine
our wealth and wellbeing. Economics develops the
knowledge, reasoning and interpretation skills that
form an important component of understanding
personal, business and government behaviour at
the local, national and global levels.
The Economics course encompasses the key
features which characterise an economist’s
approach to a contemporary economic event or
issue: the ability to simplify the essence of a
problem; to collect economic information and data
which assist analysis and reasoning; to think
critically about the limits of analysis in a social
context; and to draw inferences which assist
decision-making, the development of public policy
and improvement in economic wellbeing.
The Economics course develops reasoning, logical
thinking and interpretation skills demanded by the
world of work, business and government. These
skills relate to a variety of qualifications in
vocational, technical and university education
contexts. The learning experiences available
through this course explore the knowledge, values
and opinions which surround the complex range of
economic events and issues facing our community,
such as unemployment, income distribution,
business strategy and international relations.
Economic literacy developed through this course
enables students to actively participate in economic
and financial decision-making which promotes
individual and societal wealth and wellbeing.
Outcome 2: The operation of the economy
Students understand that economic forces influence
the operation of the economy and are affected by
the decisions of consumers and businesses.
In achieving this outcome, students:

understand how domestic and international
economic forces influence the operation of the
economy; and

understand the choices, trade-offs and effects
of economic decisions made at the local,
national and international levels.
Outcome 3: Economic policy and action
Students understand that the policies and actions of
the government and other authorities affect the
operation of the economy.
In achieving this outcome, students:

understand why economic policies and actions
are required to manage the economy;

understand how policy options are used to
address domestic and international economic
problems and issues; and

understand the effects of economic policies
and actions of government and other
authorities at the local, national and
international level.
Course content
The course content is the focus of the learning
program.
The course content is divided into two content
areas:

economic knowledge

economic reasoning and interpretation.
In the teaching and learning program Economic
reasoning and interpretation skills are integrated
with Economic knowledge.
Economic knowledge
Course outcomes
The Economics course is designed to facilitate the
achievement of three outcomes.
Outcome 1: Economic inquiry
Students use economic information and data to
communicate an understanding of economic
events, issues and decisions.
In achieving this outcome, students:
 locate, select and organise economic
information and data;
 analyse and interpret economic information and
data; and
 use economic terms, concepts and models to
communicate an understanding of economic
events, issues and decisions.
Economic knowledge focuses on economic
concepts and principles. These concepts and
principles include the allocation of resources used
in producing goods and services, the distribution of
the proceeds of production, the behaviours of
consumers and businesses in markets. Economic
knowledge is also used to assess the impact of
economic forces and evaluate the economic actions
and policies of the government and regulatory
authorities. Economic knowledge is applied at the
local, national and global levels.
Economic
reasoning
interpretation
and
This content area focuses on the skills that are
used to analyse contemporary economic events,
issues and decisions to communicate the findings.
These skills assist in clarifying and justifying
personal values and attitudes about events, issues
and decisions affecting the economy and society.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
3
Economic reasoning and interpretation skills involve
selecting and organising economic information and
data from a range of print and electronic sources. It
also involves the analysis and interpretation of
tables and graphs.
allocate and price resources in a way that society
would regard as efficient, equitable or sustainable.
Students examine examples of market failure along
with a range of government policy options that can
be applied to achieve more desirable outcomes.
Unit 2BECO
Course units
Each unit is defined with a particular focus through
which the specific unit content can be taught and
learnt. The cognitive difficulty of the content
increases with each stage. The pitch of the content
for each stage is notional and there will be overlap
between stages. In all the units the primary focus of
the content is the Australian economy.
Stage 1 units provide bridging support and a
practical and applied focus to help students develop
skills required to be successful for Stage 2 units.
Stage 2 units provide opportunities for applied
learning but there is a focus more on academic
learning.
The focus for this unit is macroeconomics. This
unit is an introduction to macroeconomics and the
government’s role in the economy. It explores
macroeconomic issues and problems such as
economic growth, inflation and unemployment with
an emphasis on the Australian economy. Students
learn it is important to measure and monitor changes
in these macroeconomic variables because they
have an important effect on the wellbeing of society.
Whilst most economies typically follow a long-term
trend of economic growth and rising living standards,
they are subject to cyclical fluctuations in the level of
economic activity.
Stage 3 units provide opportunities to extend
knowledge and understandings in challenging
academic learning contexts.
Students learn changes in the business cycle result
in changes in the levels of output, income, spending
and employment in the economy. Students examine
the important role of government, through its
spending and taxing powers, which can affect the
allocation of resources and the level of economic
activity by targeting economic objectives.
Unit 1AECO
Unit 3AECO
The focus for this unit is personal economics and
finance. It explores how individuals derive an
income and make decisions about how to spend and
save focusing on consumption, investment and
savings decisions. The operation of the financial
system and the services provided are also explored
and relate to personal financial planning. It also
explores how the government redistributes income.
Unit 1BECO
The focus for this unit is business economics. It
explores the key role of businesses in the
processes of production and spending and the
organisational structures businesses may take. It
also explores the strategies that businesses use to
promote their products and manage internal and
external
constraints,
including
government
regulation and policy.
Unit 2AECO
The focus for this unit is markets. This unit is an
introduction to microeconomics and the role that
markets play in determining the wellbeing of
individuals and society, as well as the limitations of
markets. It explores the workings of real world
markets with an emphasis on the Australian
economy.
The focus for this unit is Australia and the global
economy. It explores the interdependence of
Australia and the rest of the world. Australia is a
relatively open economy and, as such, is influenced
by changes in the world economy. It explores the
linkages between economies and the concepts of
globalisation, trade liberalisation and protection in
relation to the Australian economy. Students
examine Australia’s trade, the recording of
international transactions and the impact of these
transactions on the Australian economy.
Unit 3BECO
The focus for this unit is economic policies and
management. It explores how economic actions
and policies such as fiscal policy, monetary policy
and microeconomic reform operate in the pursuit of
the Australian Government’s economic objectives.
The changes that have taken place in the operation
of these policies in recent times are also examined.
Students learn to make informed predictions about
the operation of these policies using economic
models and past and current key economic data.
Students apply the language, theories and tools of
economics to develop a critical perspective on the
role of these policies in the current Australian
Government policy mix.
Students learn in theory, markets are an efficient
way to allocate scarce resources. However, there
are many examples of market failure that occur
when the forces of demand and supply do not
4
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Time and completion
requirements
The notional hours for each unit are 55 class
contact hours. Units can be delivered typically in a
semester or in a designated time period up to a
year depending on the needs of the students. Pairs
of units can also be delivered concurrently over a
one year period. Schools are encouraged to be
flexible in their timetabling in order to meet the
needs of all of their students.
Refer to the WACE Manual for more information
about unit and course completion.
VET integrated delivery
VET integrated within a WACE course involves
students undertaking one or more VET units of
competency concurrently with a WACE course unit.
No unit equivalence is given for units of
competency attained in this way.
VET integrated can be delivered by schools
providing they meet AQTF requirements. Schools
need to become a Registered Training Organisation
(RTO) or work in a partnership arrangement with an
RTO to deliver training within the scope for which
they are registered. If a school operates in
partnership with an RTO, it will be the responsibility
of the RTO to assure the quality of the training
delivery and assessment.
Resources
Teacher support materials are available on the
School Curriculum and Standards Authority website
extranet and can be found at www.scsa.wa.edu.au
Vocational Education
and Training
information
Vocational Education and Training (VET) is
nationally recognised training that provides people
with occupational knowledge and skills and credit
towards, or attainment of, a vocational education
and training qualification under the Australian
Qualifications Framework (AQF).
When considering VET delivery in WACE courses it
is necessary to:
 refer to the WACE Manual, Section 5:
Vocational Education and Training, and
 contact
education
sector/systems
representatives for information on operational
issues concerning VET delivery options in
schools.
Australian Quality Training Framework (AQTF)
AQTF is the quality system that underpins the
national vocational education and training sector
and outlines the regulatory arrangements in states
and territories. It provides the basis for a nationally
consistent, high-quality VET system.
The AQTF Essential Conditions and Standards for
Registered Training Organisations outline a set of
auditable standards that must be met and
maintained for registration as a training provider in
Australia.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
5
Assessment
The WACE Manual contains essential information
on principles, policies and procedures for schoolbased assessment and WACE examinations that
needs to be read in conjunction with this document.
School-based assessment
The table below provides details of the assessment
types for this course and the weighting range for
each assessment type.
Teachers are required to use the assessment table
to develop their own assessment outline for each
unit (or pair of units) of the course.
This outline includes a range of assessment tasks
and indicates the weighting for each task and each
assessment type. It also indicates the content and
course outcomes each task covers.
If a pair of units is assessed using a combined
assessment outline, the assessment requirements
must still be met for each unit.
In developing an assessment outline and teaching
program the following guidelines should be taken
into account.

All assessment tasks should take into account
the teaching, learning and assessment
principles outlined in the WACE Manual.

There is flexibility for teachers to design
school-based assessment tasks to meet the
learning needs of students.

The assessment table outlines the forms of
student response required for this course.

Student work submitted to demonstrate
achievement should only be accepted if the
teacher can attest that, to the best of her/his
knowledge, all uncited work is the student’s
own.

Evidence collected for each unit must include
assessment tasks conducted under test
conditions together with other forms of
assessment tasks.
Assessment table
Weightings for types
Stage 1
Stage 2
Types of assessment
Stage 3
Data interpretation/Short response
40–60%
30–50%
30–50%
An answer of less than 150 words that describes or analyses an economic concept, event
or issue.
Types of assessment can include multiple-choice questions, definitions, one-word
answers, short answer questions, paragraph answers that interpret economic data or
information (e.g. text, graphs, tables, cartoons), paragraph answers to case studies,
records of interviews, documented group discussion and learning logs.
Best suited to the collection of evidence of student achievement of all course outcomes.
Extended response
40–60%
30–50%
30–50%
A continuous piece of prose or a sectionalised long answer that describes or analyses an
economic concept, event or issue.
Types of assessment can include essays, reports, extended answers to scenarios or
case studies, investigations, research assignments, extended answers that interpret
economic information or data (e.g. text, graphs, tables, cartoons), written speeches and
written preparation for debate.
Best suited to the collection of evidence of student achievement of all course outcomes.
Examination
0–20%
6
20–30%
20–30%
A combination of both short answer and long answer items. Types of questions can
include multiple-choice, data interpretation questions (based on text, graphic, tables,
cartoons etc.) and extended answers (essays and sectionalised long answers which can
be based on stimulus material).
Best suited to the collection of evidence of student achievement of all course outcomes.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Grades
Standards Guides
Schools report student achievement in a completed
unit at Stage 1, 2 or 3 in terms of grades. The
following grades are used:
Standards for this course are exemplified in
Standards Guides. They include examination
questions, annotated candidate responses at the
‘excellent’ and ‘satisfactory’ achievement bands,
statistics for each question and comments from
examiners. The guides are published on the
Authority’s web site at www.scsa.wa.edu.au and are
accessed under Examination materials. An extranet
log-in is required to view the guides.
Grade
A
B
C
D
E
Interpretation
Excellent achievement
High achievement
Satisfactory achievement
Limited achievement
Inadequate achievement
Each grade is based on the student’s overall
performance for the unit as judged by reference to a
set of pre-determined standards. These standards
are defined by grade descriptions and annotated
work samples.
The grade descriptions for this course are provided
in Appendix 1. They can also be accessed, together
with annotated work samples, through the Guide to
Grades link on the course page of the Authority
website at www.scsa.wa.edu.au
Refer to the WACE Manual for further information
regarding grades.
WACE Examinations
In 2013, students in their final year who are studying
at least one Stage 2 pair of units (e.g. 2A/2B) or at
least one Stage 3 pair of units (e.g. 3A/3B) are
required to sit an examination in this course, unless
they are exempt. For 2014 and 2015, examinations
for all Stage 2 pairs of units (e.g. 2A/2B) are
optional.
WACE examinations are not held for Stage 1 units
and/or Preliminary Stage units. Any student may
enrol to sit a Stage 2 or Stage 3 examination as a
private candidate.
Each examination assesses the specific content
described in the syllabus for the pair of units studied.
Details of the WACE examinations in this course are
prescribed in the WACE examination design briefs
(pages 23–25).
Refer to the WACE Manual for further information
regarding WACE examinations.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
7

UNIT 1AECO

Unit description
The unit description provides the focus for teaching
the specific unit content.
The focus for this unit is personal economics and
finance. It explores how individuals derive an
income and make decisions about how to spend and
save focusing on consumption, investment and
savings decisions. The operation of the financial
system and the services provided are also explored
and relate to personal financial planning. It also
explores how the government redistributes income.
Unit content
This unit includes knowledge, understandings and
skills to the degree of complexity described below.
Prescribed learning context
The context of this unit is personal economics and
finance. Students apply their economic knowledge,
reasoning and interpretation skills within this context.
Some examples which could be used are as follows:

economics of buying a car

economics of an overseas holiday

economics of entering a mobile phone contract

economics of using credit

economics of career choice and income.
Economic knowledge
Earning an income

describe the range of ways in which people
earn their income e.g. wages, rent, interest,
dividends, profits (returns for using economic
resources in the production of goods and
services)

explain why people in advanced economic
systems are economically interdependent

distinguish between the concepts of income and
wealth

discuss the factors that determine an
individual’s income and wealth

explain the concept of the national distribution
of income and wealth.
Spending income

describe the factors that influence personal
purchasing decisions e.g. income, price,
availability and price of substitutes, marketing
and advertising, trends, market segments

identify common methods of payment for goods
and services e.g. cash, EFTPOS, credit, loans
from various credit providers
8
identify the advantages and disadvantages of
the different methods of payment for goods and
services
describe the economic features of a purchase
and/or credit contract e.g. deposit, interest rate,
fees and charges, term, total amount payable.
Personal budgets

compare and contrast typical income, spending
and saving patterns that might be characteristic
of particular individuals/families at different
stages of life and in different income groups

explain the concept of a personal budget

explain why people prepare personal budgets

compare and contrast ways of maintaining a
personal budget e.g. a journal, simple software
packages, spreadsheets

compare and contrast the features of personal
budgets which might be typical of particular
groups of people e.g. students with part-time
jobs, school leavers, young married couples.
Personal financial planning

explain the concepts of risk and return

explain the risk/return trade-off relating to
different types of personal investment

explain the concept of a financial pyramid as it
relates to the types of personal investment
available to individuals

explain the concept of a personal investment
portfolio

describe typical investment portfolios that might
be characteristic of particular individuals/
families at different stages of life and in different
income groups

describe methods that could be used to
evaluate personal investment decisions

examine long-term returns on various types of
personal investments

explain the reasons for annual variations in
returns from various types of personal
investments

examine typical pitfalls associated with personal
financial investment e.g. psychological factors
such as regret theory, using the past as a guide
to the future.
The role of the government

explain the concept of redistribution of income

explain the concepts of government revenue
and government spending

outline the ways in which governments provide
income support i.e. welfare payments

outline the ways in which governments tax
individuals

discuss the impact of welfare payments and
taxation on personal income and wealth

describe the ways in which governments protect
consumers e.g. the legal basis of simple
contracts

describe the ways governments support longterm personal investment.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Economic
interpretation
reasoning
and
Analysis
 select and organise sources of economic
information on personal economic or financial
concepts, events or issues e.g. newspapers,
business magazines, websites of banks and
consumer protection agencies
 apply effective methods for identifying relevant
information within sources e.g. skimming and
scanning
 apply appropriate methods of recording and
organising information or data e.g. tables to
record personal finances, graphs
 apply mathematical techniques e.g. totalling
income and expenditure in personal budgets,
calculating the effect of changes in the
exchange rate on the price of goods and
services, calculating interest and repayments
 complete relevant forms e.g. consumer
complaint forms, applications for bank accounts
and credit cards.
Communication
 use evidence from collected economic
information to communicate findings and justify
a conclusion
 make generalisations about the overall impact of
keeping financial records on personal income
 select and use appropriate formats to
communicate economic understandings e.g.
written reports, oral presentations, video
presentations
 complete the requirements for an effective
investigation of an economic event or issue e.g.
the need to plan a process, acknowledge all
sources of information used, to self-reflect on an
inquiry and suggest improvements.
Assessment
The three types of assessment in the table below
are consistent with the teaching and learning
strategies considered to be the most supportive of
student achievement of the outcomes in the
Economics course. The table provides details of the
assessment type, examples of different ways that
these assessment types can be applied and the
weighting range for each assessment type.
Weighting
Stage 1
Types of assessment
Data interpretation/Short response
40–60%
An answer of less than 150 words that
describes or analyses an economic concept,
event or issue.
Types of assessment can include multiplechoice questions, definitions, one-word
answers, short answer questions, paragraph
answers that interpret economic data or
information (e.g. text, graphs, tables,
cartoons), paragraph answers to case
studies, records of interviews, documented
group discussion and learning logs.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Extended response
40–60%
A continuous piece of prose or a
sectionalised long answer that describes or
analyses an economic concept, event or
issue.
Types of assessment can include essays,
reports, extended answers to scenarios or
case studies, investigations, research
assignments, extended answers that interpret
economic information or data (e.g. text,
graphs, tables, cartoons), written speeches
and written preparation for debate.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Examination
0–20%
A combination of both short answer and long
answer items. Types of questions can include
multiple-choice, data interpretation questions
(based on text, graphic, tables, cartoons etc.)
and extended answers (essays and
sectionalised long answers which can be
based on stimulus material).
Best suited to the collection of evidence of
student achievement of all course outcomes.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
9

UNIT 1BECO

Unit description
The unit description provides the focus for teaching
the specific unit content.
The focus for this unit is business economics. It
explores the key role of businesses in the processes
of production and spending and the organisational
structures businesses may take. It also explores the
strategies that businesses use to promote their
products and manage internal and external
constraints, including government regulation and
policy.
Unit content
This unit includes knowledge, understandings and
skills to the degree of complexity described below.
Prescribed learning context
The context of this unit is business economics.
Students apply their economic knowledge,
reasoning and interpretation skills within this context.
Some examples which could be used are as follows:
 economics of a local business
 economics of launching a new product
 economics of establishing a small business
 economics of an industry.
Economic knowledge
The role of business in the economy

discuss the size of the business sector at local
and national level

explain why people in advanced economic
systems are economically interdependent

explain the concept of a market

distinguish between product and factor markets

explain the role of businesses

discuss how businesses collectively answer the
four key economic decisions (i.e. what?, how?,
how much? and for whom?) in a modified
market economy

explain the concept of consumer sovereignty
and its implications for business decisionmaking.
The organisation and operation of business
 identify the range of businesses operating in the
local area
 examine ways of classifying businesses e.g. by
size, industry, location of their markets and
operations
10



explain how a business produces goods and
services using physical, capital and human
resources
discuss the range of economic transactions and
exchanges that occur in the production of goods
and services i.e. the value chain
explain how and why a business needs to
efficiently use the resources it employs
explain the factors that influence the size of a
business
identify the factors that affect the level of
competition in a market e.g. number of buyers,
number of sellers, barriers to entry, product
differentiation.
Business planning and strategy

discuss the objectives of a business e.g.
maximising profits and/or growth, increasing
market
share,
meeting
shareholders’
expectations

outline the risks a business faces trying to
achieve its objectives e.g. variations in market
demand, interest rate changes, inflation

explain the strategies businesses use when
operating in different market structures

outline the components of a business plan

outline the type and range of government
regulations and policies that impact on
businesses e.g. business registration, corporate
reporting
requirements,
environmental
protection requirements, Occupational Safety
and Health laws, advertising restrictions,
business taxes, interest rates

explain the concept of ethical behaviour in
business.
Economic
interpretation
reasoning
and
Analysis
 select and organise sources of economic
information on the operation of and/or
performance of business e.g. newspapers,
company
budgets,
business
magazines,
Chamber of Commerce and Industry (CCI),
Small Business Association (SBA), interviews or
surveys of business owner/operators
 apply effective methods for identifying relevant
information within sources e.g. skimming and
scanning
 apply appropriate methods of recording and
organising economic information or data, such
as graphs, to show revenue or profit over time or
tables to show the number of employees over
time
 apply mathematical techniques relevant to
analysing the profitability of businesses e.g.
calculating revenue, cost and profit.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Communication
 apply appropriate economic methods and
models to business economics e.g. the circular
flow of income
 select and apply economic data and information
to justify a conclusion or findings
 select and use appropriate formats to
communicate economic understandings e.g.
written
reports,
business
plans,
oral
presentations, video presentations
 complete the requirements for an effective
investigation of an economic event or issue e.g.
the need to plan a process, acknowledge all
sources of information used, to self-reflect on an
inquiry and suggest improvements.
Assessment
The three types of assessment in the table below
are consistent with the teaching and learning
strategies considered to be the most supportive of
student achievement of the outcomes in the
Economics course. The table provides details of the
assessment type, examples of different ways that
these assessment types can be applied and the
weighting range for each assessment type.
Weighting
Stage 1
Types of assessment
Data interpretation/Short response
40–60%
An answer of less than 150 words that
describes or analyses an economic concept,
event or issue.
Types of assessment can include multiplechoice questions, definitions, one-word
answers, short answer questions, paragraph
answers that interpret economic data or
information (e.g. text, graphs, tables,
cartoons), paragraph answers to case
studies, records of interviews, documented
group discussion and learning logs.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Extended response
40–60%
A continuous piece of prose or a
sectionalised long answer that describes or
analyses an economic concept, event or
issue.
Types of assessment can include essays,
reports, extended answers to scenarios or
case studies, investigations, research
assignments, extended answers that interpret
economic information or data (e.g. text,
graphs, tables, cartoons), written speeches
and written preparation for debate.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Examination
0–20%
A combination of both short answer and long
answer items. Types of questions can include
multiple-choice, data interpretation questions
(based on text, graphic, tables, cartoons etc.)
and extended answers (essays and
sectionalised long answers which can be
based on stimulus material).
Best suited to the collection of evidence of
student achievement of all course outcomes.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
11
UNIT 2AECO

Unit description

The unit description provides the focus for teaching
the specific unit content.
The focus for this unit is markets. This unit is an
introduction to microeconomics and the role that
markets play in determining the wellbeing of
individuals and society, as well as the limitations of
markets. It explores the workings of real world
markets with an emphasis on the Australian
economy.
Students learn in theory, markets are an efficient
way to allocate scarce resources. However, there
are many examples of market failure that occur
when the forces of demand and supply do not
allocate and price resources in a way that society
would regard as efficient, equitable or sustainable.
Students examine examples of market failure along
with a range of government policy options that can
be applied to achieve more desirable outcomes.








Unit content

This unit includes knowledge, understandings and
skills to the degree of complexity described below.
This is the examinable content of the course.

Prescribed learning context
The context of this unit is markets, with a focus on
the Australian economy. Within this context students
apply their economic knowledge, reasoning and
interpretation skills.





Economic knowledge

Markets and prices
 explain the concepts of the economic problem,
scarcity, opportunity cost and the production
possibility frontier
 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
 explain the law of demand
 demonstrate and explain the relationship
between individual and market demand
schedules and curves


12




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 price
lead to an expansion or contraction in the
quantity demanded
demonstrate and explain how changes in nonprice factors lead to an increase or decrease in
demand
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
demonstrate and explain how changes in nonprice factors lead to an increase or decrease in
supply
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
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
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.
Market efficiency and equity
 explain the concept of efficiency
 demonstrate and explain the benefits to
consumers from participating in a market by
applying marginal benefit and consumer surplus
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015





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
explain the concept of equity (fairness)
discuss the trade-off between efficiency and
equity.
Market failure and government policies
 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
 explain the concept of market failure
 analyse market failure i.e. positive and negative
externalities
 analyse market failure in terms of public goods
and common resources (tragedy of the
commons)
 analyse market failure in terms of market power
including:
 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
 compare the impact of market structures
including competitive markets, monopolies
and oligopolies
 discuss the link between market failure and the
role of government
 discuss government policy options to 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.
Economic
interpretation
reasoning
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
 select and use appropriate formats when
communicating economic understandings e.g.
written reports, oral presentations, video
presentations
 complete the requirements for an effective
investigation of an economic event, issue or
decision e.g. the need to plan a process,
acknowledge all sources of information used, to
self-reflect on an inquiry and suggest
improvements.
and
Analysis
 select and organise sources of economic
information and data on markets e.g.
newspapers, business magazines, Australian
Stock Exchange (ASX) website
 apply effective methods for identifying relevant
information within sources e.g. skimming and
scanning
 apply appropriate methods of recording and
organising economic information or data on
market performance e.g. tables to show costs of
production, graphs which show positive/inverse
relationships
 apply mathematical techniques relevant to
market analysis including constructing demand
and supply curves, the production possibility
frontier, calculating elasticities, calculating
consumer and producer surplus.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
13
Assessment
The three types of assessment in the table below
are consistent with the teaching and learning
strategies considered to be the most supportive of
student achievement of the outcomes in the
Economics course. The table provides details of the
assessment type, examples of different ways that
these assessment types can be applied and the
weighting range for each assessment type.
Weighting
Stage 2
Types of assessment
Data interpretation/Short response
30–50%
An answer of less than 150 words that
describes or analyses an economic concept,
event or issue.
Types of assessment can include multiplechoice questions, definitions, one-word
answers, short answer questions, paragraph
answers that interpret economic data or
information (e.g. text, graphs, tables,
cartoons), paragraph answers to case
studies, records of interviews, documented
group discussion and learning logs.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Extended response
30–50%
A continuous piece of prose or a
sectionalised long answer that describes or
analyses an economic concept, event or
issue.
Types of assessment can include essays,
reports, extended answers to scenarios or
case studies, investigations, research
assignments, extended answers that interpret
economic information or data (e.g. text,
graphs, tables, cartoons), written speeches
and written preparation for debate.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Examination
20–30%
14
A combination of both short answer and long
answer items. Types of questions can include
multiple-choice, data interpretation questions
(based on text, graphic, tables, cartoons etc.)
and extended answers (essays and
sectionalised long answers which can be
based on stimulus material).
Best suited to the collection of evidence of
student achievement of all course outcomes.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015

UNIT 2BECO

Unit description
The unit description provides the focus for teaching
the specific unit content.

The focus for this unit is macroeconomics. This
unit is an introduction to macroeconomics and the
government’s role in the economy. It explores
macroeconomic issues and problems such as
economic growth, inflation and unemployment with
an emphasis on the Australian economy. Students
learn it is important to measure and monitor changes
in these macroeconomic variables because they
have an important effect on the wellbeing of society.
Whilst most economies typically follow a long-term
trend of economic growth and rising living standards,
they are subject to cyclical fluctuations in the level of
economic activity.

Students learn changes in the business cycle result
in changes in the levels of output, income, spending
and employment in the economy. Students examine
the important role of government, through its
spending and taxing powers, which can affect the
allocation of resources and the level of economic
activity by targeting economic objectives.
Unit content
This unit includes knowledge, understandings and
skills to the degree of complexity described below.
This is the examinable content of the course.
Prescribed learning context
The context of this unit is the role of governments
in modified market economies, with a focus on the
Australian economy. Within this context students
apply their economic knowledge, reasoning and
interpretation skills to examine:


Australia’s current macroeconomic performance
Australia’s macroeconomic performance over
the last ten years.
Economic knowledge
Macroeconomic activity
 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
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.
Macroeconomic concepts and issues
 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
 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
 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
 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
 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
 distinguish between the concepts of income and
wealth
 explain how the Lorenz curve represents
inequality in the distribution of income and
wealth.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
15
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
 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
 outline the internal economic objectives of the
Australian Government i.e. sustainable economic
growth, low unemployment (full 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.

and unemployment, tables showing the widening
of the Current Account Deficit (CAD)
apply mathematical techniques relevant to
macroeconomic analysis including calculating
the inflation rate from CPI data, the
unemployment rate and participation rate 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 income, production
possibility curve, investment demand curve, the
Lorenz curve
 draw conclusions from collected economic
information and data
 select and use appropriate formats when
communicating economic understandings e.g.
written reports, oral presentations, multimedia
presentations
 complete the requirements for an effective
investigation of an economic event, issue or
decision e.g. the need to plan a process,
acknowledge all sources of information used, to
self-reflect on an inquiry and suggest
improvements.
Macroeconomic performance
 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.
Economic
interpretation
reasoning
and
Analysis
 select and organise sources of economic data
and information on macroeconomic indicators
and policies e.g. newspapers, business
magazines, Australian Bureau of Statistics
(ABS), Reserve Bank of Australia (RBA), banks,
the Organisation for Economic Co-operation and
Development (OECD)
 apply effective methods for identifying relevant
information within sources e.g. skimming and
scanning
 apply relevant methods of recording and
organising macroeconomic data and information
e.g. spreadsheets to show movement in the
Consumer Price Index (CPI) over time, graphs
to demonstrate the relationship between inflation
16
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Assessment
The three types of assessment in the table below
are consistent with the teaching and learning
strategies considered to be the most supportive of
student achievement of the outcomes in the
Economics course. The table provides details of the
assessment type, examples of different ways that
these assessment types can be applied and the
weighting range for each assessment type.
Weighting
Stage 2
Types of assessment
Data interpretation/Short response
30–50%
An answer of less than 150 words that
describes or analyses an economic concept,
event or issue.
Types of assessment can include multiplechoice questions, definitions, one-word
answers, short answer questions, paragraph
answers that interpret economic data or
information (e.g. text, graphs, tables,
cartoons), paragraph answers to case
studies, records of interviews, documented
group discussion and learning logs.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Extended response
30–50%
A continuous piece of prose or a
sectionalised long answer that describes or
analyses an economic concept, event or
issue.
Types of assessment can include essays,
reports, extended answers to scenarios or
case studies, investigations, research
assignments, extended answers that interpret
economic information or data (e.g. text,
graphs, tables, cartoons), written speeches
and written preparation for debate.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Examination
20–30%
A combination of both short answer and long
answer items. Types of questions can include
multiple-choice, data interpretation questions
(based on text, graphic, tables, cartoons etc.)
and extended answers (essays and
sectionalised long answers which can be
based on stimulus material).
Best suited to the collection of evidence of
student achievement of all course outcomes.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
17
UNIT 3AECO
Unit description
The unit description provides the focus for teaching
the specific unit content.
The focus for this unit is Australia and the global
economy. It explores the interdependence of
Australia and the rest of the world. Australia is a
relatively open economy and, as such, is influenced
by changes in the world economy. It explores the
linkages between economies and the concepts of
globalisation, trade liberalisation and protection in
relation to the Australian economy. Students
examine Australia’s trade, the recording of
international transactions and the impact of these
transactions on the Australian economy.
Unit content
It is recommended that students studying Stage 3
have completed Stage 2 units.
This unit includes knowledge, understandings and
skills to the degree of complexity described below.
This is the examinable content of the course.
Prescribed learning context
The context of this unit is Australia and the global
economy, with the focus being on the engagement
of Australia with the world economy and the impact
on the Australian economy. Within this context
students apply their economic knowledge, reasoning
and interpretation skills.
Economic knowledge
Global markets
 outline the linkages between economies e.g.
trade, investment, tourism, immigration
 describe the extent, patterns and trends in world
trade
 explain
the
concept
of
international
competitiveness
 outline the determinants of international
competitiveness
 explain the concepts of multinational businesses
and globalisation
 discuss the extent of globalisation
 outline the factors facilitating globalisation
 outline the positive and negative economic effects
of globalisation.
18
Free trade and protection
 outline the significance of trade for the
Australian economy
 outline the sources of comparative advantage
 demonstrate and explain the gains from
specialisation and trade using the models of
demand and supply analysis and/or opportunity
cost
 identify different forms of protection
 demonstrate and explain how the main types of
protectionist policies operate including tariffs and
subsidies
 evaluate the arguments for protection and trade
liberalisation
 outline the influence of trade agreements,
organisations and blocs on world trade.
Australia and the global economy
 discuss the extent, composition and direction of
Australia’s trade
 account for the major patterns and trends in the
composition and direction of Australia’s trade
 describe the structure of Australia's balance of
payments
 explain the concept of the Current Account Deficit
(CAD)
 explain the reasons for Australia’s CAD
 account for the recent trends in Australia’s current
account
 explain the implications of Australia’s CAD
 recognise that there are different views as to the
significance of Australia’s CAD
 explain the concepts of the terms of trade and the
terms of trade index
 discuss recent trends in Australia’s terms of trade
 explain the significance of changes in Australia’s
terms of trade
 explain the concepts of exchange rates, an
appreciation and a depreciation
 demonstrate and explain how a freely floating
exchange rate is determined
 explain the relationship between the balance of
payments and the exchange rate
 outline the factors that affect the exchange rate
 discuss the effects of movements in the
exchange rate on various sectors of the economy
 identify the recent trends in Australian exchange
rates
 explain the concept of foreign liabilities i.e. foreign
investment and foreign debt
 explain the relationship between the current
account outcome and foreign liabilities
 account for the extent of and recent trends in
Australia’s foreign investment and foreign debt
 assess the benefits and costs of foreign
investment and foreign debt to Australia.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Economic
interpretation
reasoning
and
Analysis
 select and organise sources of economic
information on trade and globalisation e.g.
newspapers, business magazines, Department
of Foreign Affairs and Trade (DFAT), Austrade,
Australian Council of Trade Unions (ACTU),
World Bank, United Nations Organisation
(UNO), Organisation for Economic Co-operation
and Development (OECD)
 apply effective methods for identifying relevant
information within sources e.g. skimming and
scanning
 apply appropriate methods of recording and
organising
economic
information
e.g.
spreadsheet showing Australia’s net foreign
liabilities, graphs showing the widening of the
CAD over time, tables representing opportunity
cost between the production of two goods
 apply mathematical techniques relevant to
international economic analysis including
opportunity cost ratios, calculating the terms of
trade index, exchange rate calculations,
completing balance of payment calculations
including Balance on Current Account, Balance
on Capital and Financial Account.
Communication
 apply appropriate economic methods and
models to demonstrate economic behaviour
such as the theory of comparative advantage,
demand and supply for exported/imported goods
and services, currencies, the debt trap
 draw conclusions from collected economic
information
 select and use appropriate formats when
communicating economic understandings e.g.
written reports, oral presentations, multimedia
presentations
 complete the requirements for an effective
investigation of an economic event, issue or
decision e.g. the need to plan a process,
acknowledge all sources of information used, to
self-reflect on an inquiry and suggest
improvements.
Assessment
The three types of assessment in the table below
are consistent with the teaching and learning
strategies considered to be the most supportive of
student achievement of the outcomes in the
Economics course. The table provides details of the
assessment type, examples of different ways that
these assessment types can be applied and the
weighting range for each assessment type.
Weighting
Stage 3
Types of assessment
Data interpretation/Short response
30–50%
An answer of less than 150 words that
describes or analyses an economic concept,
event or issue.
Types of assessment can include multiplechoice questions, definitions, one-word
answers, short answer questions, paragraph
answers that interpret economic data or
information (e.g. text, graphs, tables,
cartoons), paragraph answers to case
studies, records of interviews, documented
group discussion and learning logs.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Extended response
30–50%
A continuous piece of prose or a
sectionalised long answer that describes or
analyses an economic concept, event or
issue.
Types of assessment can include essays,
reports, extended answers to scenarios or
case studies, investigations, research
assignments, extended answers that interpret
economic information or data (e.g. text,
graphs, tables, cartoons), written speeches
and written preparation for debate.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Examination
20–30%
A combination of both short answer and long
answer items. Types of questions can include
multiple-choice, data interpretation questions
(based on text, graphic, tables, cartoons etc.)
and extended answers (essays and
sectionalised long answers which can be
based on stimulus material).
Best suited to the collection of evidence of
student achievement of all course outcomes.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
19
UNIT 3BECO

Unit description

The unit description provides the focus for teaching
the specific unit content.

The focus for this unit is economic policies and
management. It explores how economic actions
and policies such as fiscal policy, monetary policy
and microeconomic reform operate in the pursuit of
the Australian Government’s economic objectives.
The changes that have taken place in the operation
of these policies in recent times are also examined.
Students learn to make informed predictions about
the operation of these policies using economic
models and past and current key economic data.
Students apply the language, theories and tools of
economics to develop a critical perspective on the
role of these policies in the current Australian
Government policy mix.
Unit content
It is recommended that students studying Stage 3
have completed Stage 2 units.
This unit includes knowledge, understandings and
skills to the degree of complexity described below.
This is the examinable content of the course.
Prescribed learning context
The context of this unit is economic policies and
management, with the focus being on the Australian
economy. Within this context students apply their
economic knowledge, reasoning and interpretation
skills to examine:


Australia’s current macroeconomic performance
and policy stance
Australia’s macroeconomic performance and
policy stance over the last ten years.
Economic knowledge
Macroeconomic theory
 explain the characteristics and causes of the
business cycle
 explain the relationship between the business
cycle and the economic indicators of inflation,
unemployment and economic growth
 outline
the
components
of
aggregate
expenditure i.e. consumption, investment,
government spending, net exports
 explain the factors which affect the components
of aggregate expenditure
20







demonstrate and explain the relationship
between the consumption function, the marginal
propensity to consume and the marginal
propensity to save
explain the concept of macroeconomic
equilibrium
demonstrate and explain the impact of changes
in aggregate expenditure on the equilibrium level
of income/output (Gross Domestic Product —
GDP)
demonstrate and explain the multiplier process
examine the economic impact of changes in each
of the components of aggregate expenditure
explain the aggregate demand (AD) curve and
identify the factors that can shift the AD curve
explain the aggregate supply (AS) curve and
identify the factors that can shift the AS curve
use
the
AD/AS
model
to
illustrate
macroeconomic equilibrium
demonstrate and explain the impact of changes
in aggregate demand and aggregate supply on
the equilibrium level of income/output
use the AD/AS model to help explain the
business cycle.
Economic policy objectives
 outline the internal economic objectives of the
Australian
Government
i.e.
sustainable
economic growth, low inflation (price stability),
low unemployment (full employment), a more
equitable distribution of income and the efficient
allocation of resources
 outline the economic objective of external
stability in terms of three main issues i.e. the
size of the Current Account Deficit, the stability
of the exchange rate and the capacity of the
economy to service and sustain its foreign
liabilities
 outline the economic policy objectives of the
Reserve Bank of Australia (RBA)
 discuss the extent to which Australian
Government economic objectives may conflict
and complement each other
 describe the time lags which occur in the use of
economic policies i.e. recognition, decision
(implementation) and effect (impact) lags.
Fiscal policy
 explain the concept of fiscal policy
 identify the components of government revenue
and expenditure in the budget
 outline different budget outcomes i.e. balanced,
surplus and deficit budgets
 account for differences between planned and
actual budget outcomes
 explain the methods of financing a budget deficit
and the uses of a budget surplus
 distinguish between automatic fiscal stabilisers
and discretionary fiscal policy
 explain
the
concepts
of
fiscal
policy
expansionary, contractionary, neutral stances
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015



demonstrate and explain the impact of different
fiscal policy stances on the level of economic
activity
discuss the strengths and weaknesses of fiscal
policy
explain recent fiscal policy stances in Australia.
Monetary policy
 explain the concepts of monetary policy and the
cash rate
 outline the circumstances under which the RBA
may change the cash rate
 explain
the
concepts
of
expansionary,
contractionary and neutral monetary policy
stances
 demonstrate and explain the impact of different
monetary policy stances on the level of economic
activity
 discuss the strengths and weaknesses of
monetary policy
 explain recent monetary policy stances in
Australia.
Microeconomic reform

explain the concept of microeconomic reform
policy

explain the concept of productivity

outline common measures of productivity

explain the concept of economic efficiency

discuss examples of microeconomic reform in
Australia in the past decade e.g. labour market
reform, taxation reform, reducing levels of
protection, competition policy

explain the relationship between microeconomic
reform and structural change

demonstrate and explain the impact of
microeconomic reform on aggregate supply

explain current microeconomic reform policy in
Australia.
Economic
interpretation
reasoning


apply mathematical techniques relevant to
macroeconomic analysis including calculating
the value of the multiplier and changes in
national income, determine the budget outcome,
the inflation rate from CPI data, the
unemployment rate and participation rate from
labour force data, calculating and interpreting
rates of change in GDP, interpreting
macroeconomic data using economic indicators,
calculating percentage change in economic
variables
interpret
complex
economic
data
e.g. graphs with multiple variables, compound
column graph.
Communication
 apply appropriate economic methods and
models to demonstrate economic activity
including Keynesian aggregate expenditure (AE)
model,
aggregate-demand/aggregate-supply
(AD/AS) model (using the AS curve that can be
described as having three ranges), the business
cycle, the Phillips Curve, the GDP gap,
aggregate production function
 draw conclusions from collected economic
information and data
 select and use appropriate formats when
communicating economic understandings e.g.
written reports, oral presentations, multimedia
presentations
 complete the requirements for an effective
investigation of an economic event, issue or
decision e.g. the need to plan a process,
acknowledge all sources of information used,
the need to self-reflect on an inquiry and
suggest improvements.
and
Analysis
 select and organise sources of economic
information
on
economic
policy
and
management e.g. newspapers, business
magazines, Australian Bureau of Statistics
(ABS), RBA, banks, OECD, World Bank
 apply effective methods for identifying relevant
information within sources e.g. skimming and
scanning
 apply appropriate methods of recording and
organising macroeconomic information e.g.
spreadsheets to show movement in the
Consumer Price Index (CPI) over time, graphs
to demonstrate the relationship between inflation
and unemployment, tables showing changes in
economic data over time
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
21
Assessment
The three types of assessment in the table below
are consistent with the teaching and learning
strategies considered to be the most supportive of
student achievement of the outcomes in the
Economics course. The table provides details of the
assessment type, examples of different ways that
these assessment types can be applied and the
weighting range for each assessment type.
Weighting
Stage 3
Types of assessment
Data interpretation/Short response
30–50%
An answer of less than 150 words that
describes or analyses an economic concept,
event or issue.
Types of assessment can include multiplechoice questions, definitions, one-word
answers, short answer questions, paragraph
answers that interpret economic data or
information (e.g. text, graphs, tables,
cartoons), paragraph answers to case
studies, records of interviews, documented
group discussion and learning logs.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Extended response
30–50%
A continuous piece of prose or a
sectionalised long answer that describes or
analyses an economic concept, event or
issue.
Types of assessment can include essays,
reports, extended answers to scenarios or
case studies, investigations, research
assignments, extended answers that interpret
economic information or data (e.g. text,
graphs, tables, cartoons), written speeches
and written preparation for debate.
Best suited to the collection of evidence of
student achievement of all course outcomes.
Examination
20–30%
22
A combination of both short answer and long
answer items. Types of questions can include
multiple-choice, data interpretation questions
(based on text, graphic, tables, cartoons etc.)
and extended answers (essays and
sectionalised long answers which can be
based on stimulus material).
Best suited to the collection of evidence of
student achievement of all course outcomes.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Examination details
Stage 2 and Stage 3
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
23
Economics
Examination design brief
Stage 2
Time allowed
Reading time before commencing work:
Working time for paper:
ten minutes
three hours
Permissible items
Standard items:
pens (blue/black preferred), pencils (including coloured), sharpener, correction fluid/tape,
eraser, ruler, highlighters
Special items:
non-programmable calculators approved for use in the WACE examinations
Section
Supporting information
Section One
Multiple-choice
30% of the total examination
The questions are pitched at varying degrees of difficulty.
30 questions
Suggested working time: 45 minutes
Section Two
Data interpretation/Short response
50% of the total examination
3–5 questions
Suggested working time: 90 minutes
The questions have parts of increasing complexity.
The parts could require responses that include:
 simple calculations
 recall of knowledge (descriptive responses)
 annotation of economic models
 diagrams
 explanations, data application and/or data analysis (detailed
responses).
Most questions refer to stimulus material. The stimulus material could
include graphs, tables, texts or cartoons.
Section Three
Extended response
20% of the total examination
The questions either have parts or are scaffolded.
1 question from a choice of 2
Suggested working time: 45 minutes
24
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Economics
Examination design brief
Stage 3
Time allowed
Reading time before commencing work:
Working time for paper:
ten minutes
three hours
Permissible items
Standard items: pens (blue/black preferred), pencils (including coloured), sharpener, correction fluid/tape,
eraser, ruler, highlighters
Special items:
non-programmable calculators approved for use in the WACE examinations
Section
Supporting information
Section One
Multiple-choice
24% of the total examination
24 questions
Suggested working time: 35 minutes
The questions are pitched at varying degrees of difficulty.
Section Two
Data Interpretation/Short response
36% of the total examination
3 questions
Suggested working time: 65 minutes
The questions have parts and each question is of approximately equal value.
The parts could require the candidate to:
 engage with data, by, for example, performing calculations, identifying
trends or identifying relationships
 interpret the data or other information in stimulus material
 explain links to economic theory and analyse the concepts to which the
data relate.
Most questions refer to stimulus material. The stimulus material could include
graphs, tables, texts or cartoons.
Section Three
Extended response
40% of the total examination
2 questions from a choice of 4
Suggested working time: 80 minutes
The questions could have parts.
Questions could require the candidate to apply their knowledge and
understandings to recent economic experiences or conditions.
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
25
26
Economics: Accredited March 2008 (updated October 2013)
For teaching and examination in Year 12 2015
Appendix 1: Grade descriptions
Economics: Accredited March 2008 (updated October 2013)—Appendix 1
For teaching and examination in Year 12 2015
Grade descriptions
Economics
Stage 1
A
Explains economic concepts and identifies simple relationships between economic concepts.
Performs accurate calculations and interprets economic data correctly.
Uses economic concepts and data to support responses and is able to link theory to familiar examples.
Communicates in a clear manner, using appropriate economic terminology and data.
B
Defines and describes most economic concepts and identifies some of the simple relationships between
economic concepts.
Performs mostly accurate calculations and interprets some economic data correctly.
Describes economic concepts and uses simple data to support responses and is able to link theory to
familiar examples.
Communicates in a clear but descriptive manner, using mostly appropriate economic terminology and
data.
C
Defines some economic concepts and makes a few simple links between economic concepts.
Performs simple calculations with limited accuracy.
Describes some economic concepts, and uses limited data in an attempt to support responses.
Communicates in a general manner, using limited economic terminology and data.
D
Provides limited statements about economic concepts.
Performs few calculations and with limited accuracy.
Provides a limited description of some economic concepts.
Communicates using very limited economic terminology and minimal to no data.
E
Provides incomplete or minimal statements about economic concepts.
Makes little to no attempt to complete calculations.
Communicates using minimal economic terminology and with no references to data.
Economics: Accredited March (updated October 2013)—Appendix 1
For teaching and examination in Year 12 2015
Grade descriptions
Economics
Stage 2
A
Identifies and explains interrelationships between economic concepts.
Performs accurate calculations and correctly interprets a range of economic data.
Uses and applies a range of economic concepts, economic models and data to support responses, and is
able to link theory to real world situations.
Communicates in a coherent manner, incorporating a clear structure, appropriate economic terminology,
diagrams and data.
B
Explains economic concepts and identifies some relationships between economic concepts.
Performs some accurate calculations and correctly interprets some economic data.
Uses and applies some economic concepts, economic models and data to support responses and is able
to link theory to familiar examples.
Communicates in a logical manner using a clear structure, some appropriate economic terminology,
diagrams and data.
C
Describes economic concepts and makes simple links between economic concepts.
Performs simple calculations and finds straightforward information in economic data.
Uses some economic concepts, economic models and data in an attempt to support responses, and is
able to link some theory to familiar examples.
Communicates in a general manner incorporating a simple structure, some economic terminology,
diagrams and data.
D
Provides simple, sometimes incomplete, descriptions of economic concepts.
Performs simple calculations, with limited accuracy.
Uses limited economic concepts, economic models and data in responses.
Communicates in a superficial manner, using limited economic terminology, diagrams and data.
E
Rarely provides complete descriptions of simple economic concepts.
Rarely performs calculations and rarely identifies information in economic data.
Uses very few economic concepts and models and minimal data in responses, often incorrectly.
Communicates with little to no structure using minimal economic terminology, diagrams and data.
Economics: Accredited March 2008 (updated October 2013)—Appendix 1
For teaching and examination in Year 12 2015
Grade descriptions
Economics
Stage 3
A
Explains complex interrelationships between economic concepts.
Performs complex calculations and analyses economic data.
Applies a wide range of economic concepts, economic models and data to support responses, and is able
to analyse the impact of contemporary economic events and issues.
Communicates in a coherent manner incorporating a logical structure, appropriate economic terminology,
diagrams and data.
B
Identifies and explains interrelationships between economic concepts.
Performs calculations and interprets economic data.
Applies a range of economic concepts, economic models and data to support responses, and is able to
link theory to contemporary economic events and issues.
Communicates in a coherent manner incorporating a clear structure, appropriate economic terminology,
diagrams and data.
C
Provides descriptions of economic concepts and identifies simple relationships between economic
concepts.
Performs simple calculations and demonstrates some interpretation of economic data.
Uses a range of economic concepts, models and data to support responses in familiar contexts.
Communicates in a straightforward manner, using a simple structure, some economic terminology,
diagrams and data.
D
Provides simple descriptions of some economic concepts.
Performs simple calculations and demonstrates limited interpretation of economic data.
Uses a limited range of economic concepts, models and data to support responses in familiar contexts.
Communicates in a superficial, loosely structured manner, using limited economic terminology, diagrams
and data.
E
Provides inaccurate or incomplete descriptions of economic concepts.
Performs minimal calculations and demonstrates little or no interpretation of economic data.
Uses few or no economic concepts and models and minimal data to support responses.
Communicates in a colloquial manner, using minimal to no economic terminology, diagrams and data.
Economics: Accredited March 2008 (updated October 2013)—Appendix 1
For teaching and examination in Year 12 2015