Economics Unit 2: Contemporary Economic Issues and living standards

Prerequisites

There are no prerequisites for this unit but previous experience in the subject is preferred.

Course Description

A core principle of economics is maximising the living standards of society. This is done through economic decisions that optimise the use of resources to produce goods and services that satisfy human needs and wants. Economic activity is therefore a key consideration for economics. Students consider the link between economic activity and economic growth and investigate the importance of economic growth in raising living standards. They evaluate the benefits and costs of continued economic growth and consider the extent to which our current measurements of living standards are adequate.

Economics provides useful tools for investigating contemporary issues that inspire debate and wide differences in opinion. Students undertake an applied economic analysis of two contemporary economics issues from a local, national and international perspective. They use the tools of data collection, analysis, synthesis and evaluation to examine the issue through an economics lens. They do this through investigation of the economic factors influencing the issue and via examination of its economic importance at a local, national and international level. Students consider the perspectives of relevant economic agents and evaluate the validity and effectiveness of individual and collective responses to the issue.

Areas of Study

Economic activity

Applied economic analysis of local, national and international economic issues

Economic issues affect all of us, influencing our daily lives and decision-making. The rapidly changing nature of the contemporary economy means the economic issues of importance to local areas, Australia and the international economy are constantly changing and evolving.

Applied economics involves students applying insights of economic theory and key economic skills to analyse economic issues. In this area of study, students undertake an applied economic analysis by investigating two contemporary economic issues from a local, national and international perspective through an economic lens. Students investigate two of the four following current economic issues: the changing labour market; the economics of international trade; the distribution of income and wealth; and economics and environmental sustainability.

The approach for each investigation will involve a similar structure, including:

the definition of the selected economic issue, including relevant measures and statistical indicators
the economic factors influencing the extent of the selected economics issue
the reasons the issue is of importance to the economy at a local, national and international level
the different perspectives of households, business, government and other relevant economic agents regarding the selected economics issue
the economic responses undertaken by relevant economic agents at a local, national and international level to address the economic issue, including government policies.

For each issue investigated, the key knowledge and key skills on the following page should be applied. Detailed elaborations of the key knowledge content for each issue have been provided in the Support materials.

Assessment

Outcomes	Assessment Tasks
Outcomes	(school-assessed coursework)
On completion of this unit the student should be able to explain the purpose of economic activity, the distinction between material and non-material living standards and the factors that may affect levels of economic activity and growth, discuss the costs and benefits of economic growth and examine the impact of economic activity on living standards using alternative measures.	Tests, problem-solving tasks or essay or folio or presentation.
On completion of this unit the student should be able to explain the factors that affect two economic issues at a local, national and international level and evaluate actions to address the issues.	Tests, problem-solving tasks or essay or folio or presentation.

Overall Final Assessment

End of Semester Examination – 1.5 hours.