HSC Economics

Nota:

• The HSC Economics course has an essentially Macroeconomics. It examines the external framework in which the Australian economy operates such as the impact of the global economy, the link between macroeconomic issues and the management of the Australia economy. ---------------------------------------- This course has four topics: Topic1:The Global Economy Topic2:Australia's Place in the Global Economy Topic3: Economic Issues in the Australian economy Topic4: Economic Policies & Management.
• Key Terms *Aggregate demand: This refers to the total demand for goods and services generated by the sum of all spending in the economy. Y = C + I + G + X - M Students should understand that a basic proposition of economic analysis that focuses on the level of production, employment and income that are determined by the level of total spending on the final goods and/or services. ---------------------------------------- *APEC: The Asia Pacific Economic Cooperation Forum.  its purpose is to promote cooperation among nations and member countries ---------------------------------------- *ASEAN The Association of Southeast Asian Nations. All members have agreed to free trade among it countries. ---------------------------------------- *Balance of Payments: A complete statement of all transactions between one country and the rest of the world in any specific period. ---------------------------------------- *Bank bills: These refer to a short-term credit arrangements designed to enable businesses to obtain funds to finance commercial transactions. ---------------------------------------- *Bilateral trade agreement: this refers to the trading agreement between two countries.
• HSC examination will consist of: * 100 marks for a written paper . *Time allowed is 3 hours (plus 5 minutes of reading the questions) *The written paper will consist of four (4) sections) --------------------------------------- 1-Section I (20 marks): this consists of multiple-choice response questions. It takes an average of 1.8 minutes to answer a question, and for completing this section, it takes about 35 minutes. ---------------------------------------- 2-Section II (40 marks): There will be four (4) short answer questions that comprised of a number of short answer questions (about 12 in total). ---------------------------------------- 3-Section III (20 marks): There will be two stimulus-based extended response questions. Students are asked to answer one of these. A susgestion is that students should wite to answer this part in a lengh of 800 words  in the booklet provided. The criteria for this section includes: *synthesise student's knowledge: logical economic information, and well-strucred  response *a clear, comprehensive, supported analysis of the economic issues are raised through the question. ---------------------------------------- 4-Section IV: (20 marks): There will be two (2) extended response questions. The student needs to choose one . This is a written answer, and  the student is expected to write about 800 words in six pages provided. *The criteria includes: +integrating of an extensive and appropriate rage of economic key words that is refered to relevant economic theories and concepts. +demonstrading of superior economic analysis +providing of a clear comprehensive and understanding of the economic issues

1. Topic3-Economic Issues in the Australian economy

   Nota:

   • This topic focuses on the nature, causes and consequences of the economic issues and problems that confront  contemporary economies in Australia.
   1. Economic growth

      Nota:

      • * aggregate demand & its components: Y= C+I+G+X-M * Injections I+G+X and withdrawals  S+T+M * the simple multiplier          k=1/(1-MPC) * changes in real GDP *sources and effects * improvement in efficiency and technology * trends in business cycle
   2. Unemployment
      1. measurement

         Nota:

         • -labour force -participation rate -unemployment rate
      2. trends
      3. types and causes

         Nota:

         • -cyclical -structural -frictional -seasonal -underemployment -hidden -long term
      4. non-accelerating inflation rate of unemployment-NAIRU
      5. main group affected by unemployment
      6. effects of unemployment

         Nota:

         • -economic and social costs
   3. External stability

      Nota:

      • Teaching & Learning Strategies: -Diagnostic assessment (pre-testing) -matching definitions & terminology -note making (ICT: QUIZLET, Mindmap...) -Practice on CAD mesurement -YouTube / Video clips -Articles - reflecting on the discussion & analysis of:       *causes, affects/consequences, trends 
      1. measurement

         Nota:

         • -Current Account Deficit (CAD) as a percentage of Gross Domestic Product -net foreign debt as percentage of Gross Domestic Product -terms of trade -exchange rate -international competitiveness
      2. trends
      3. positive & negative causes and effects
   4. Inflation

      Nota:

      • *measurement - headline and underlying * trends * causes       - demand inflation      - cost inflation      - imported inflation      - inflationary expectations *positive and negative effects
   5. Distribution of income and wealth

      Nota:

      • *measurement - Lozenz curve and Gini coefficient*sources of income as of percentage of household income*taxation, transfer payment and other assistance *sources of wealth *demensions and trends, according to gender, age, occupation, ethnic background and family structure *economic and social costs, and  benefits of inequality
   6. Environmental sustainability
      1. environmental issues

         Nota:

         • -preservation and natural environments -pollution and climate change -depletion or renewable and non-renewable resources
      2. private & social costs and benefits
      3. public & private goods
      4. ecologically sustainable development
2. Topic1-The Global Economy

   Nota:

   • Students learn to: +Examine economic issues: -examine the effects of globalisation on economic growth and the quality of life, levels of unemployment, rates of inflation and external stability. -assess the potential impact on the environment of continuing world economic development. -assess the consequences of an unequal distribution of global income and wealth. +Apply economic skills: -analyse statistics on trade and financial flows to determine the nature and extent of global interdependence. -assess the impact on the global economy of international organisations and contemporary trading bloc agreements. -evaluate the impact of development strategies used in a range of contemporary and hypothetical situations. =======================
   • This topic focuses on the operation of the global economy and the impact of globalisation on individual economies
   1. International Economic integration
      1. the global economy

         Nota:

         • The changes of the global economy have resulted from the process of globalisation.  This refers to the development of the world markets in terms of capital, goods, and services that linked to the increasing occurrence of commercial exchanges across national boundaries. +Major organisations such as : -WTO (World Trade Organisation -IMF (the International Monetary Fund) -OECD (the Organisation for Economic Cooperation and Development). - Regional trading blocs: APEC(the Asia-Pacific Economic Cooperation group), EU (the European Union), NAFTA (the North American Free Trade Agreement) 
      2. Gross World Product

         Nota:

         • GDP (Gross Domestic Product) 
      3. Globalisation

         Nota:

         • -trade in goods and services -financial flows -investment and transnational corporations -technology, transport and communication -international division of labour,  migration    
      4. the international and regional business cyles
   2. Trade, financial flows, and foreign investment
      1. the basis of free trade

         Nota:

         • -advantages and disadvantages of free trade
      2. role of international organisations

         Nota:

         • -WYO, IMF, World Bank, United Nations, ODCD
      3. influence of government economic forums

         Nota:

         • -G20, G7/8
      4. trading blocs, monetary unions and free trade agreements

         Nota:

         • -advantages and disadvantages of multilateral ( EU, APEC, NAFTA, ASIAN), and bilateral agreements
   3. Protection
      1. reasons for protection

         Nota:

         • -infant industry argument, domestic employment, dumping, defence
      2. methods of protection and the effects of protectionist policies on the domestic an global economy

         Nota:

         • -tariffs, subsidies, quotas, local content rules, export incentives
   4. Globalisation & economic development

      Nota:

      • *differences between econimic growth and economic development *distribution of income and wealth *income and quality of life indicators *developing economies, emerging economies, advanced economies *reasons for differences between nations *effects of globalisation *trade, investment, and transnational corporation *environmental sustainability *the international business cycle  
   5. Case Study

      Nota:

      • *undertake a case study of the influence of globalisation on an economy other than Australia, including an evaluation of the strategies used to promote economic growth and development in this economy
3. Topic4-Economic Policies & Management

   Nota:

   • This topic focuses on the aims and operation of economic policies in the Australian economy and considers hypothetical situations of their application and impact on the Australian economy.
   1. Macroeconomic policies
      1. Rationale

         Nota:

         • -stabilisation and shifts in aggrete demand -
      2. Monetary policy

         Nota:

         • *purpose of monetary policy *implementation od monetary policu by the Reserve Bank os Australia *impact of changes in interest rates on economic activity and the exchange rate
      3. Fiscal policy

         Nota:

         • *Federal Government budgets and budget outcomes *effects of budgetary changes on resources use, income distribution and economic activity *methods of financing deficits *use of a surplus  
   2. Economic objectives
      1. Potential conflicts among objectives
      2. six objectives

         Nota:

         • Economic growth & quality of life Full employment price stability external stability environmental sustainability distribution of income
   3. Micro economic Policies
      1. Labour market policies

         Nota:

         • *role of national and state systems
         1. role of national and state systems
         2. the national system for determining

            Nota:

            • -minimum employment standards -minimum wages -awards -enterprise agreements -employment contracts for high income earners
         3. dispute resolution
         4. arguments for and against the use of centralised, decentralised and individualised methods of determining employment contracts
         5. education, training & employment programs
      2. National & global context for environmental management
         1. regulations
         2. market-based policies
         3. targets
         4. international agreements
      3. Rationale

         Nota:

         • stabilisation and shifts in aggregate
      4. Limitations
         1. time lags
         2. global influences
         3. political constraints
   4. Policy responses & their effects in dealing with the economic objectives

      Nota:

      • *economic growth and quality of life *full employment *price stability *external stability *distribution of income *environmental sustainability
4. Topic2-Australia's Place in the Global Economy

   Nota:

   • This topic focuses on the examination of Australia's place in the global economy and the effect of changes in the global economy on Australia.
   1. Australia's trade and financial flows
      1. Value, composition, and direction of Australia's trade & financial flows

         Nota:

         • *trends in Australia trade pattern *trends in financial flows - debt and euity  
      2. Australia's Balance of Payments

         Nota:

         • *structure   -current accounts, debits and credits   -capital and financial account*links between key Balance of payments categories     *trends in the size and composition of Australia's Balance of Payments     -international competitiveness, terms of trade, international borrowing, foreign investment    -effects of these trends on Australia's Balance of Payments   
   2. Exchange rates

      Nota:

      • *measurement of relative exchange rates    -to other individual currencies    -Trade Weighted Index *factors affecting the demand for and supply of Australian dollars *changes in exchanges rates - appreciation/depreciation *determination of exchange rates including fixed, flexible and managed rates *the influence of the Reserve Bank of Australia on exchange rates *the effects of fluctuations in exchange rates on the Australian economy    
   3. Free trade & protection

      Nota:

      • *Australia's policies regarding free trade and protection *Australia's multilateral and bilateral free trade agreements (overview of two examples of each type of agreement) *the implications of Australia's policies for individuals, firms, and governments *implications for Australia of protectionist policies of other countries and trading blocs
5. Source from the Board of Studies NSW -Stage 6 syllabus 2009 pp31-41 - Prepared by Lydia Le 2013