ECONOMICS LEVEL 3
Unit 1: An Introduction to Economics
Market failure and government policies
Economic policies and action
- Government policy options to correct market failure – the use of taxes and subsidies, assigning property rights, regulating the use of common property, providing public goods and services.
Unit 2: Economic Management
Management Policies
Economic knowledge
Fiscal/Budgetary policy:
- Microeconomic policy – a tool for improving economic efficiency intergenerational equity and inequality.
Economic policy and action
- The challenges governments experience when implementing economic policy – conflicting objectives, limitations of data, lags, international forces, political factors .
Unit 4: Investigation into a contemporary economic issue
Economic Issue 2: Income and Wealth Distribution in Australia
Focus
- Market outcomes can produce inequity. Economic policy can play a role in altering income and wealth distribution.
Key ideas
- Taxation