Economics is the study of how resources are allocated to meet the needs and wants of society. It attempts to explain how and why people behave the way they do and the consequences of their decision making. By unpacking economic considerations around how best to meet the needs and wants of citizens, the study of Economics provides students with valuable insights into issues that may affect them both individually and as members of society. Economics assists students in making more informed and responsible decisions and in making a contribution to public debate as active citizens.
Economics examines how resources are allocated to meet society's needs and wants, exploring the decisions of consumers, businesses and governments and their consequences for living standards.
In Unit 3, students investigate how markets allocate resources and determine prices, why governments intervene and what unintended consequences can follow. They then analyse the factors driving aggregate demand and supply, assess Australia's recent economic performance, and explore international trade, exchange rates and global competitiveness.
Unit 4 focuses on economic management. Students examine how the Australian Government uses budgetary policy and how the Reserve Bank of Australia conducts monetary policy, evaluating the strengths and limitations of both approaches. The unit concludes by considering how aggregate supply policies support long-term growth, employment and competitiveness.
Together, these units give students a rigorous understanding of how the Australian economy works, who shapes it, and what it means for the living standards of all Australians.
There are two types of assessment used for VCE Economics, Units 3 and 4:
Firstly, there is School Assessed Coursework: In total, this contributes 50% of the year’s final assessment. Here, the teacher rates a student’s performance by using a number of assessments throughout Units 3 and 4. Typically, these involve structured short answer and multiple-choice questions or data analysis that are completed under test conditions.
Secondly, there is the end-of-year examination. This contributes 50% of the final assessment. It consists of both multiple-choice and structured short-answer questions (but not essays).
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The main resources required are as follows:
Key Concepts in VCE Economics 2, Units 3-4, Jacaranda, 11th edition, by Richard Morris (a hard copy textbook, with access to digital materials)