ECONOMICS LEVEL 3
Unit 2: Economic Management
Management Policies
Economic knowledge
- Microeconomic policy – a tool for improving economic efficiency intergenerational equity and inequality.
Economic reasoning
- Impact of different fiscal policy stances on the level of economic activity
- Demonstration and explanation of the impact of microeconomic reform on aggregate supply and macroeconomic equilibrium.
Economic decision-making
- Explanation of recent microeconomic reform/policy in Australia
- Impact of microeconomic reform (e.g. taxation) on aggregate supply and macroeconomic equilibrium.
Economic policy and action
- The challenges governments experience when implementing economic policy – conflicting objectives, limitations of data, lags, international forces, political factors
- Implications in terms of social justice, environmental concerns and practical limitations.
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
- Fiscal policies, intergenerational policies, microeconomic policies, regulations
- Welfare policy (social services, health care and education).