Year 12 - Economics (ATAR)
Learning outcomes
12 outcomes
- ECO12-U3-1 Explain Australia's international trade: its linkages with other economies through trade, investment, tourism and immigration; the extent and importance of trade for the Australian economy; the composition and direction of Australia's trade; and Australia's trade policy, including regional and bilateral free trade agreements. Unit 3: Australia and the global economy understand
- ECO12-U3-2 Analyse free trade and protection: the concepts of absolute and comparative advantage and the sources of comparative advantage; the gains from specialisation and trade using the demand and supply model, the Production Possibility Frontier (PPF) model and opportunity cost; the benefits of trade liberalisation; types of protection (tariffs, subsidies, quotas); arguments for protection; and the impact of tariffs and subsidies, using the demand and supply model, on trade, market efficiency and the macroeconomy. Unit 3: Australia and the global economy analyze
- ECO12-U3-3 Explain the balance of payments: the concept and structure of Australia's balance of payments and the double-entry system of recording transactions; the reasons for Australia's current account balance in terms of the factors influencing the trade balance and the income balance; the current account balance and the savings/investment gap; and trends in Australia's current account and financial account over the last ten years. Unit 3: Australia and the global economy analyze
- ECO12-U3-4 Analyse the terms of trade: the concepts of the terms of trade and the terms of trade index; factors that affect the terms of trade, including changes in commodity prices; trends in Australia's terms of trade over the last ten years; and the effects of changes in Australia's terms of trade. Unit 3: Australia and the global economy analyze
- ECO12-U3-5 Analyse exchange rates: the concept of an exchange rate, including Australia's exchange rate and the trade weighted index; the relationship between the balance of payments and the exchange rate; the determination of, and movements in, the exchange rate using the demand and supply model; the factors that affect the exchange rate; the effects of movements in the exchange rate; and trends in Australia's exchange rate over the last ten years. Unit 3: Australia and the global economy analyze
- ECO12-U3-6 Evaluate foreign investment: the concept of foreign investment in terms of Australia's foreign investment flows; the distinction between foreign direct and portfolio investment; the link between foreign investment and the current account balance; trends in Australia's foreign investment flows over the last ten years; the benefits and costs of foreign investment in Australia; and the concept of Australia's foreign assets, foreign liabilities and international investment position. Unit 3: Australia and the global economy analyze
- ECO12-U4-1 Explain Australia's macroeconomic performance and the business cycle: the causes and turning points of the business cycle; the relationship between the business cycle and economic indicators; and trends in Australia's macroeconomic performance over the last ten years. Unit 4: Macroeconomic theory and economic policy understand
- ECO12-U4-2 Analyse the aggregate expenditure model: the factors affecting each component of Aggregate Expenditure (AE = C + I + G + (X − M)); the relationship between the consumption function, the marginal propensity to consume and the marginal propensity to save; the AE model and macroeconomic equilibrium, including the role of inventories; the concept of the multiplier and the multiplier process using the AE model; and the impact of changes in the components of AE on the equilibrium level of income/output. Unit 4: Macroeconomic theory and economic policy analyze
- ECO12-U4-3 Analyse the aggregate demand and aggregate supply model: the AD curve and factors causing movements along and shifts of it; the short-run aggregate supply (SRAS) curve and factors causing movements along and shifts of it; the long-run aggregate supply (LRAS) curve and factors causing shifts of it; macroeconomic equilibrium using the AD/AS model; the impact of changes in AD and AS on the equilibrium level of income/output; and the use of the AD/AS model to explain the business cycle. Unit 4: Macroeconomic theory and economic policy analyze
- ECO12-U4-4 Evaluate fiscal policy: the concept of fiscal policy and the macroeconomic policy objectives of the Australian Government; balanced, surplus and deficit budget outcomes; reasons for differences between planned and actual budget outcomes; methods of financing a budget deficit and the impact of government debt; the distinction between automatic stabilisers and discretionary fiscal policy; the impact of expansionary and contractionary fiscal stances using the AE and AD/AS models; the strengths and weaknesses of fiscal policy; and fiscal policy stances in Australia over the last three years. Unit 4: Macroeconomic theory and economic policy evaluate
- ECO12-U4-5 Evaluate monetary policy: the concepts of monetary policy and the cash rate; the economic policy objectives of the Reserve Bank of Australia (RBA); conventional and unconventional monetary policy; the circumstances under which the RBA may change the monetary policy stance; how changes in the cash rate affect economic activity (the transmission mechanism); the impact of expansionary and contractionary monetary stances using the AE and AD/AS models; the strengths and weaknesses of monetary policy; and monetary policy stances in Australia over the last three years. Unit 4: Macroeconomic theory and economic policy evaluate
- ECO12-U4-6 Analyse labour productivity and long-run growth: the importance of long-run economic growth; the concept of labour productivity; the factors affecting labour productivity growth (human capital, physical capital/capital deepening, technological progress); government policies designed to influence labour productivity and economic growth; and the impact of changes in labour productivity using the AD/AS model and the Aggregate Production Function (APF). Unit 4: Macroeconomic theory and economic policy analyze