ECONOMICS
Unit 2: Contemporary Economic Issues
Area of Study 2: Economic efficiency and equity
Outcome 2
- On completion of this unit the student should be able to explain the factors and policies that may influence equity in the distribution of income and efficiency of resource allocation, and analyse the potential trade-off.
Key knowledge
- budgetary policy decisions on the achievement of equity in the distribution of income and the efficient allocation of resources, such as progressive, proportional and regressive taxes, unemployment benefits and subsidisation of merit goods.
Key skills
- define key economic concepts and terms and use them appropriately
- gather and interpret statistical data on income distribution and poverty
- construct appropriate diagrams to represent the degree of income inequality
- identify trends, patterns, similarities and differences in economic data and other information
- identify and discuss factors that influence equity in the distribution of income and efficiency of resource allocation
- access and synthesise information gathered from a range of sources and draw conclusions.