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Economics
TQA 3
Economics ECN315111: TQA Level 3, Size Value = 15
The course document
This document contains the following sections:
RATIONALE 1
course size and complexity 2
COURSE DESCRIPTION 2
PATHWAYS 2
Learning OUtcomes 2
COURSE CONTENT 3
Assessment 8
EXTERNAL ASSESSMENT REQUIREMENTS 8
QUALITY ASSURANCE PROCESSES 8
CRITERIA 9
STANDARDS 10
QUALIFICATIONS AVAILABLE 17
AWARDS REQUIREMENTS 17
COURSE EVALUATION 18
COURSE DEVELOPER 18
Accreditation 18
Version History 18
RATIONALE
Courses in the study of society and the environment examine human interrelationships, and the diverse relationships that exist between humans and their environments over time. The breadth of the learning area includes the study of spatial patterns and processes, human behaviour, ethics, beliefs, social justice, sustainable development, political, economic and legal systems, cultural and environmental heritage, and the nature of business and work cultures.
Economic issues and decisions have a critical role to play in our society, being central to our politics and the media. Gaining knowledge of economics will develop values, attitudes and knowledge to enable students to participate in our society more effectively.
course size and complexity
This course has been assessed as having a complexity level of TQA level 3.
At TQA level 3, the student is expected to acquire a combination of theoretical and/or technical and factual knowledge and skills and use judgment when varying procedures to deal with unusual or unexpected aspects that may arise. Some skills in organising self and others are expected. TQA level 3 is a standard suitable to prepare students for further study at the tertiary level. VET competencies at this level are often those characteristic of an AQF Certificate III.
The TQA level 3 course has a size value of 15.
COURSE DESCRIPTION
Economics level 3 is the study of decision-making. It answers the question of how we - as a society and as individuals - use our scarce resources to satisfy our needs. Students of economics will develop greater understanding of individual, business and government behaviour. This involves learning economic terminology, concepts, tools and principles.
Students of this course will investigate contemporary economic issues using both economic ideas and knowledge of the features of the Australian economic system. This involves the study of issues central to how the Australian economy operates namely growth, inflation, employment and overseas events. Skills, knowledge and the inquiry process will be used to enable students to identify, collate, analyse and evaluate information from multiple sources and to form evidence based conclusions.
PATHWAYS
This course is designed for students looking for pathways to work and further study. Some vocational links include: government positions; financial professions; business management; journalism; entrepreneurship; and economist.
Study pathways include a range of higher education qualifications in areas such economics, business, law.
Learning OUtcomes
On successful completion of this course, learners will have knowledge and skills to:
· understand and use economic terms, concepts and theories
· understand and use economic decision-making skills
· see economics as a method of enquiry
· outline how the Australian economy operates
· analyse a range of economic problems and evaluate solutions
· communicate economic information and ideas.
COURSE content
Students will study the following three topics:
1. The Australian Economy
2. Australian Economic Issues
3. Australia and the World Economy
1 - THE AUSTRALIAN ECONOMY
The economic problem
· Needs and wants
· The economic problem – definition and characteristics
· Resources (labour, capital, natural and enterprise)
· Four economic questions – what to produce, how much to produce, how to produce and how to distribute the produce
· Opportunity Cost and Production Possibilities – including scarcity, defining and calculating opportunity cost and production possibility curves.
Australia – a mixed market economy
· Pure market and planned economies – brief overview/contrast
· The key features of a mixed market economy
· Government intervention. How and why does the government intervene in the economy? This includes market failure in terms of production, income distribution, market power, market instability and externalities.
Supply and Demand
· Consumers and business in the market
· Demand - determinants
· Supply - determinants
· Market Equilibrium - determining equilibrium, shortages, surpluses and changes in equilibrium
· Government intervention in the market – subsidies, taxes (sales), minimum and maximum prices.
· Price elasticity of demand – definition, significance to business and government, calculation using revenue method.
The circular flow
· Five sectors, flows, leakages and injections. The concept of equilibrium, increasing and decreasing the circular flow.
The Business Cycle, Aggregate Demand and Aggregate Supply
· Brief description and illustration of the Business Cycle.
· The benefits and problems caused by upswings and downswings, including recessions.
· Define Aggregate Demand and Aggregate Supply.
· The significance of Aggregate Demand
· Components of aggregate demand and factors that influence these components (AD = C + I + G + (X-M))
· The multiplier, marginal propensity to consume and marginal propensity to save. The multiplier (k) = 1 / (1-MPC).
Relevant examples of current issues and case studies concerning the Australian economy will be studied.
2. AUSTRALIAN ECONOMIC ISSUES
Issue – economic Growth
Growth
Define economic growth, sustainable economic growth and GDP.
Simple calculation of the growth rate.
Consequences of growth
Outline the benefits of growth in terms of standard of living, innovation and invention. Differentiate between material and non-material standards of living (brief coverage only).
Outline the costs of growth in terms of unemployment, inflation, external stability and the environment.
Issue – Inflation
Inflation
· Define inflation, differentiate types of inflation (focus is on demand-pull and cost-push).
· Measuring inflation. The Consumer Price Index and simple calculation of inflation.
Consequences of Inflation
· The economic impact of inflation on interest rates, investment, external stability income distribution and material standard of living.
Issue – Unemployment
Employment and Unemployment
· Define unemployed, employed, population, labour force and participation rate.
· Differentiate types of unemployment (focus is on structural and cyclical). This includes hidden and underemployment.
· Measuring unemployment. The ABS survey and simple calculation of un-employment.
Consequences of Unemployment
· The economic impact of unemployment on output, the Budget, income distribution and labour skills.
· The social and economic impact of unemployment on poverty, physical health, mental health, crime and personal relationships.
Government Objectives and Policy
The Objectives of Economic Policy
· The objectives of economic management.
Fiscal Policy/Budgetary Policy
· Define ‘fiscal policy’
· The budget including revenue and expenditure (includes stance and income)
· Automatic stabilisers (welfare payments and progressive taxes)
· The impact of different budget outcomes on aggregate demand
· Evaluation of Fiscal policy – key strengths and weaknesses.
Monetary Policy
· Define ‘monetary policy’
· The role of the RBA including targeting and independence. Knowledge of market operations not required
· The transmission mechanism. The impact of interest rate changes on aggregate demand
· Evaluation of monetary policy – key strengths and weaknesses.
Overview of Monetary, Fiscal and Micro economic reform Policy
· The role of monetary and fiscal policy in managing inflation (demand-pull), unemployment (structural and cyclical) and economic growth
· Basic coverage of policy conflicts
· Basic overview of micro economic reform – aims only
· The policy mix.
Relevant examples of current issues and case studies concerning the Australian economy will be studied.
3. AUSTRALIA AND THE WORLD ECONOMY
Australian trade
Trade
· Why does Australia trade with other economies? Refer to employment, income, choice, economies of scale, access to resources, specialisation and resource allocation
· Comparative Advantage (theory only, no calculations).
Trade Protection and Reform
· Reasons for trade protection
· Trade protection using tariffs, subsidies and quotas (including diagrams)
· The implications of reducing protection for Australia.
Exchange Rates
· Define floating exchange rate
· Define appreciation and depreciation of a floating exchange rate
· What are the causes of an appreciation/depreciation of a floating exchange rate? Refer to supply and demand
· What are the effects of an appreciation/depreciation of a floating exchange rate?
· What is the TWI (simple coverage only)?
Australia’s Balance of Payments
The Balance of Payments
· Brief overview of the two accounts. Focus on trade balance and income accounts. No calculations required. Very basic coverage of capital and financial account only.
The Current Account Deficit
· What is a current account deficit and foreign debt?
· What are the consequences of a high current account deficit and foreign debt? Include impact of debt servicing. Also include alternate view that debt is not a problem.
Globalisation
Globalisation and Development
· Define and differentiate globalisation and development
· Differences in economic development including HDI and standard of living.
The Impact of Globalisation
· Brief overview of the impact of globalisation on economic growth, economic development, international trade, inequality and the environment.
Relevant examples of current issues and case studies concerning the Australian economy will be studied.
Assessment
Criterion-based assessment is a form of outcomes assessment which identifies the extent of student achievement at an appropriate end-point of study. Although assessment – as part of the learning program - is continuous, much of it is formative, and is done to help students identify what they need to do to attain the maximum benefit from their study of the course. Therefore, assessment for summative reporting to the Tasmanian Qualifications Authority should focus on what both teacher and student understand to reflect end-point achievement.
The standard of achievement each student attains on each criterion is recorded as a rating ‘A’, ‘B’, or ‘C’, according to the outcomes specified in the standards section of the course.
A ‘t’ notation must be used where a student demonstrates any achievement against a criterion less than the standard specified for the ‘C’ rating. The ‘t’ notation sits outside the continuum of ratings and is thus not described in course standards.
A ‘z’ notation is to be used where a student provides no evidence of achievement at all.
Providers offering this course must participate in the quality assurance processes.
Internal assessment of all criteria will be made by the provider. Providers will report the student’s rating for each criterion to the Tasmanian Qualifications Authority.
The Tasmanian Qualifications Authority will supervise the external assessment of designated criteria (*). The ratings obtained from the external assessments will be used in addition to those provided from the provider to determine the final award.
EXTERNAL ASSESSMENT REQUIREMENTS
The external assessment requirements for this course assess criteria 3, 4, 5, 6 and 7.
Further information regarding external assessment processes and requirements is articulated in the TQA issued Assessment Guidelines.
quality assurance processes
The following processes will be facilitated by the TQA to ensure there is:
· a match between the standards for achievement specified in the course and the standards demonstrated by students
· community confidence in the integrity and meaning of the qualification.
Processes – the Authority gives course providers feedback about any systematic differences in the relationship of their internal and external assessments and, where appropriate, seeks further evidence through audit and requires corrective action in the future.
CRITERIA
The assessment for Economics TQA level 3 will be based on the degree to which the student can:
1. Plan, organise, research and complete activities independently, and collaboratively
2. Communicate economic information
3. * Demonstrate knowledge and understanding of economic terms and concepts
4. * Demonstrate knowledge and understanding of economic data
5. * Demonstrate knowledge and understanding of economic problems
6. * Demonstrate knowledge and understanding of economic solutions
7. * Analyse and evaluate economic issues and information.
*= externally and internally assessed criteria
STANDARDS
Criterion 1 plan, organise, Research and complete activities independently, and collaboratively
Rating ‘C’ / Rating ‘B’ / Rating ‘A’A learner can: / A learner can: / A learner can:
use and reference credible sources / find, use and reference credible sources / find, use and reference a wide variety of credible sources
· / with direction provided, collate economic information / · / collect and collate relevant economic information / · / collect and collate relevant economic information
· / respond positively to advice about completing tasks / · / consult and negotiate with relevant others about individual and collaborative tasks / · / when necessary, consult and negotiate with relevant others about individual and collaborative tasks
· / in a group situation, contribute positively to the planning and completion of tasks / · / actively participate in the planning and completion of group tasks. / · / reflect upon previous planning and make changes to improve performance in group tasks.
· / initiate, lead and manage a collaborative task
· / complete a majority of significant work on time. / · / generally complete all assigned work on time. / · / complete all work on time.
Criterion 2 Communicate ECONOMIC information
Rating ‘C’ / Rating ‘B’ / Rating ‘A’A learner can: / A learner can: / A learner can:
describe basic economic information / accurately describe economic information / accurately and comprehensively describe economic information
· / effectively convey information, including in extended writing / · / communicate effectively using accepted conventions, including in extended writing / · / communicate effectively in a variety of appropriate forms using accepted conventions, including in extended writing
· / address the basic intent of a question / · / structure a response so as to be readily understood / · / sequence information and arguments to create a logical whole
· / present some points of view other than one’s own. / · / convey the central aspects of an issue effectively / · / focus on the objective of the assigned task and communicate relevantly
· / present the essential arguments of both sides of an issue. / · / communicate in a balanced and comprehensive way, given the parameters of the task
· / set aside a personal perspective in the interests of objective analysis.
Criterion 3 * Demonstrate knowledge and understanding of economic terms and concepts
Rating ‘C’ / Rating ‘B’ / Rating ‘A’A learner can: / A learner can: / A learner can:
outline basic facts about Australia’s economic system / outline key facts and concepts about Australia’s economic system / describe in detail key facts and concepts about Australia’s economic system
· / use and interpret economic terms and concepts to produce statements about Australia’s economic system / · / use and interpret economic terms and concepts to produce descriptions of Australia’s economic system / · / use and interpret economic terms and concepts in comprehensively describing Australia’s economic system
· / identify some links in Australia’s economic system. / · / make appropriate connections between relevant facts about Australia’s economic system / · / make connections between a wide range of relevant concepts and facts about Australia’s economic system
· / apply economic concepts and principles. / · / accurately apply a wide range of economic concepts and principles.
Criterion 4 * Demonstrate knowledge and understanding of economic data in mathematical form