ECONOMICS
Topic 4: Economic Policies and Management
Students learn to:
Examine economic issues
- analyse the opportunity cost of government decisions in addressing specific economic problems or issues.
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:
- 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
- environmental sustainability.