ECONOMICS
Topic 4: Economic Policies and Management
Apply economic skills
- explain how governments are restricted in their ability to simultaneously achieve economic objectives
- identify limitations of the effectiveness of economic policies
- explain the impact of key economic policies on an economy
- explain, using economic theory, the general effects of macroeconomic and microeconomic policies on an economy
Students learn about:
Economic objectives in relation to:
- distribution of income.
Potential conflicts among objectives
Microeconomic policies
- rationale for microeconomic policies including shifts in aggregate supply, efficiency
- effects of microeconomic policies on individual product and factor markets, individual industries and the economy.
Limitations of economic policies
- Policy responses and their effects in dealing with the economic objectives:
- economic growth and quality of life
- full employment
- price stability
- distribution of income.