ECONOMICS
STAGE 1
Thinking Like an Economist
Economic concepts
Choices
- Consumers, firms, and governments have to make choices.
Factors affecting choices
- Intended and unintended consequences of decisions.
Opportunity cost
- Concept of opportunity cost.
- Opportunity cost can help consumers, producers, and governments make decisions.
Cause and effect
- Justifying decisions, and the consequences of those decisions on individuals, firms, the economy, and society.
Economic inquiry skills
- Investigate scenarios and economic problems by:
- applying economic concepts, including scarcity, choice, opportunity cost, and cause and effect of economic decisions in a variety of economic contexts
- analysing the rationale for economic decisions and their intended and unintended consequences.
Data analysis
- Understand a range of qualitative and quantitative economic data.
Economic Contexts
Government involvement in the economy
- Situations where a government takes action in an economy to modify market outcomes.
- Government involvement in the economy, including:
- regulation of situations where the market solution may be inconsistent with society’s values, or may incur costs for those not involved in making the economic decision.
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