Syllabus
Economics
Stage 6 syllabus (2009), the document examined in the 2026 HSC. 143 Year 12 dot points. Official document, SHA-256 45243646bd2a.
Every line below is the official wording, read from the NESA file by a parser and checked verbatim against it. Nothing here was typed by hand.
HSC Topic One - The Global Economy
Examine economic issues
- examine the effects of globalisation on economic growth and the quality of life, levels of unemployment, rates of inflation and external stability
- assess the potential impact on the environment of continuing world economic development
- investigate the global distribution of income and wealth
- assess the consequences of an unequal distribution of global income and wealth
- discuss the effects of protectionist policies on the global economy
Apply economic skills
- analyse statistics on trade and financial flows to determine the nature and extent of global interdependence
- assess the impact on the global economy of international organisations and contemporary trading bloc agreements
- evaluate the impact of development strategies used in a range of contemporary and hypothetical situations.
International economic integration
- the global economy
- Gross World Product
- globalisation
- trade in goods and services
- financial flows
- investment and transnational corporations
- technology, transport and communication
- international division of labour, migration
- the international and regional business cycles
Trade, financial flows and foreign investment
- the basis of free trade - its advantages and disadvantages
- role of international organisations - WTO, IMF, World Bank, United Nations, OECD
- influence of government economic forums - G20, G7/8
- trading blocs, monetary unions and free trade agreements
- advantages and disadvantages of multilateral (EU, APEC, NAFTA, ASEAN) and bilateral agreements
Protection
- reasons for protection - infant industry argument, domestic employment, dumping, defence
- methods of protection and the effects of protectionist policies on the domestic and global economy - tariffs, subsidies, quotas, local content rules, export incentives
Globalisation and economic development
- differences between economic growth and economic development
- distribution of income and wealth
- income and quality of life indicators
- developing economies, emerging economies, advanced economies
- reasons for differences between nations
- effects of globalisation
- trade, investment and transnational corporations
- environmental sustainability
- the international business cycle.
Case study
- Undertake a case study of the influence of globalisation on an economy other than Australia, including an evaluation of the strategies used to promote economic growth and development in this economy.
HSC Topic Two - Australia's Place in the Global Economy
Examine economic issues
- assess the impact of recent changes in the global economy on Australia's trade and financial flows
- examine the effects of changes in trade and financial flows on Australia's economic performance
- analyse the effects of changes in the value of the Australian dollar on the Australian economy
- discuss the impact of free trade and protection policies on the quality of life in Australia
- propose likely changes to the structure of industry within Australia as a result of current trends in the global economy
Apply economic skills
- calculate the main components of Australia's balance of payments
- analyse the relationship between the balance of the capital and financial account and the net income balance
- explain the relationship between the current account balance and the balance of the capital and financial account
- use supply and demand diagrams to explain how the value of a currency is determined under different exchange rate systems
- analyse the impact of changes in the components of the balance of payments on the value of the Australian dollar
Australia's trade and financial flows
- Australia's trade and financial flows
Value, composition and direction of Australia's trade and financial flows
- trends in Australia's trade pattern
- trends in financial flows - debt and equity
Australia's Balance of Payments
- structure
- Current Account, debits and credits
- Capital and Financial Account
- links between key Balance of Payments categories
- trends in the size and composition of Australia's Balance of Payments
- international competitiveness, terms of trade, international borrowing, foreign investment
- effects of these trends on Australia's Balance of Payments
Exchange rates
- measurement of relative exchange rates
- to other individual currencies
- Trade Weighted Index
- factors affecting the demand for and supply of Australian dollars
- changes in exchange rates - appreciation/depreciation
- determination of exchange rates including fixed, flexible and managed rates
- the influence of the Reserve Bank of Australia on exchange rates
- the effects of fluctuations in exchange rates on the Australian economy
Free trade and protection
- Australia's policies regarding free trade and protection
- Australia's multilateral and bilateral free trade agreements - (overview of two examples of each type of agreement)
- the implications of Australia's policies for individuals, firms and governments
- implications for Australia of protectionist policies of other countries and trading blocs.
HSC Topic Three - Economic Issues
Examine economic issues
- examine the arguments for and against increasing economic growth rates
- investigate the economic and social problems created by unemployment
- analyse the effects of inflation on an economy
- discuss the effect of a continued current account deficit on an economy
- investigate recent trends in the distribution of income in Australia and identify the impact of specific economic policies on this distribution
- analyse the economic and social costs of inequality in the distribution of income
- examine the economic issues associated with the goal of ecologically sustainable development
Apply economic skills
- identify and analyse problems facing contemporary and hypothetical economies
- calculate an equilibrium position for an economy using leakages and injections
- determine the impact of the (simple) multiplier effect on national income
- explain the implications of the multiplier for fluctuations in the level of economic activity in an economy
- calculate the unemployment rate and the participation rate using labour force statistics
- interpret a Lorenz curve and a Gini coefficient for the distribution of income in an economy
- use economic concepts to analyse a contemporary environmental issue
- assess the key problems and issues facing the Australian economy.
Economic issues in the Australian economy
- Economic issues in the Australian economy
Economic growth
- aggregate demand and its components: Y = C+I+G+X-M
- injections and withdrawals (I+G+X; S+T+M)
- the simple multiplier: k = 1/(1-MPC)
- measurement of growth through changes in real Gross Domestic Product
- sources and effects of economic growth in Australia
- increases in aggregate supply - improvements in efficiency and technology
- trends in business cycle
Unemployment
- measurement
- labour force
- participation rate
- unemployment rate
- trends
- types and causes
- cyclical
- structural
- frictional
- seasonal
- underemployment
- hidden
- long term
- non-accelerating inflation rate of unemployment (NAIRU)
- main groups affected by unemployment
- effects of unemployment - economic and social costs
Inflation
- measurement - headline and underlying
- trends
- causes
- demand inflation
- cost inflation
- imported inflation
- inflationary expectations
- positive and negative effects
External stability
- measurement
- Current Account Deficit (CAD) as a percentage of Gross Domestic Product
- net foreign debt as a percentage of Gross Domestic Product
- net foreign liabilities as a percentage of Gross Domestic Product
- terms of trade
- exchange rate
- international competitiveness
- trends
- positive and negative causes and effects
Distribution of income and wealth
- measurement - Lorenz curve and Gini coefficient
- sources of income as a percentage of household income
- taxation, transfer payments and other assistance
- sources of wealth
- dimensions and trends, according to gender, age, occupation, ethnic background and family structure
- economic and social costs and benefits of inequality
Environmental sustainability
- ecologically sustainable development
- private and social costs and benefits - externalities, market failure
- public and private goods - free riders
- environmental issues:
- preservation of natural environments
- pollution, climate change
- depletion of renewable and non-renewable resources.
HSC Topic Four - Economic Policies and Management
Examine economic issues
- analyse the opportunity cost of government decisions in addressing specific economic problems or issues
- investigate structural changes in the Australian economy resulting from microeconomic policies
- apply economic theory to explain how a government could address an economic problem or issue in hypothetical situations
- analyse alternative ways to finance a budget deficit
Apply economic skills
- explain how governments are restricted in their ability to simultaneously achieve economic objectives
- use (simple) multiplier analysis to explain how governments can solve economic problems
- identify limitations of the effectiveness of economic policies
- explain the impact of key economic policies on an economy
- propose and evaluate alternative policies to address an economic problem in hypothetical and the contemporary Australian contexts
- explain, using economic theory, the general effects of macroeconomic and microeconomic policies on an economy
- select an appropriate policy mix to address a specific economic problem.
Economic objectives in relation to:
- economic growth and quality of life
- full employment
- price stability
- external stability
- environmental sustainability
- distribution of income
Potential conflicts among objectives
- Potential conflicts among objectives
Macroeconomic policies
- rationale for macroeconomic policies - stabilisation and shifts in aggregate demand
Fiscal policy
- Federal Government budgets and budget outcomes
- effects of budgetary changes on resource use, income distribution and economic activity
- methods of financing deficits
- use of a surplus
Monetary policy
- purpose of monetary policy
- implementation of monetary policy by the Reserve Bank of Australia
- impact of changes in interest rates on economic activity and the exchange rate
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
- regulation and deregulation - competition policy
Labour market policies
- role of national and state systems
- the national system for determining
- minimum employment standards
- minimum wages
- awards
- enterprise agreements
- employment contracts for high income earners
- dispute resolution
- arguments for and against the use of centralised, decentralised and individualised methods of determining employment contracts
- education, training and employment programs
National and global context for environmental management
- regulations
- market-based policies
- targets
- international agreements
Limitations of economic policies
- time lags
- global influences
- political constraints
Policy responses and their effects in dealing with the economic objectives
- economic growth and quality of life
- full employment
- price stability
- external stability
- distribution of income
- environmental sustainability.
Year 11 assumed knowledge
Not examined directly in the HSC, but the Year 12 course builds on it. Collapsed so the examinable material above stays in view.
Preliminary Topic One - Introduction to Economics31 items
Examine economic issues
- identify the opportunity costs involved in economic decisions made by individuals, businesses and governments at local, state and national levels
- examine the ways that the economic problem affects individuals at different income levels
- examine the implications of unemployment and technological change using production possibility frontiers
- compare and contrast the ways that different economies deal with specific problems or issues
Apply economic skills
- construct and interpret production possibility frontiers
- distinguish between equilibrium and disequilibrium situations in the circular flow of income model
- explain how an economy might return to an equilibrium situation from a disequilibrium situation
- identify bias in media items on economic issues affecting the local, state and national economies
- identify key features of an economy through analysis of a variety of information types and sources
- work in groups to investigate aspects of economics and economies.
The nature of economics
- the economic problem - wants, resources, scarcity
- the need for choice by individuals and society
- opportunity cost and its application through production possibility frontiers
- future implications of current choices by individuals, businesses and governments
- economic factors underlying decision-making by:
- individuals - spending, saving, work, education, retirement, voting and participation in the political process
- business - pricing, production, resource use, industrial relations
- governments - influencing the decisions of individuals and business
The operation of an economy
- production of goods and services from resources - natural, labour, capital and entrepreneurial resources
- distribution of goods and services
- exchange of goods and services
- provision of income
- provision of employment and quality of life through the business cycle
- the circular flow of income
- individuals, businesses, financial institutions, governments, international trade and financial flows
Economies: their similarities and differences
- examine similarities and differences between Australia and at least one economy in Asia in relation to:
- economic growth and the quality of life
- employment and unemployment
- distribution of income
- environmental sustainability
- the role of government in health care, education and social welfare.
Preliminary Topic Two - Consumers and Business41 items
Examine economic issues
- examine the impact of income on the spending and saving decisions of individuals
- assess the extent to which consumer sovereignty is achieved in a variety of markets
- investigate the relative significance of the various sources of incomes in Australia
- work in groups to investigate the factors leading to change in a particular industry
Apply economic skills
- analyse the impact of changes in consumer income levels on the types of production within the economy
- explain the role of firms in solving the economic problem.
The role of consumers in the economy
- The role of consumers in the economy
Consumer sovereignty
- Consumer sovereignty
Patterns of consumer spending and saving/dissaving:
- variations with income and age
- individual consumers either spend or save their income
- in the economy as a whole, as income rises the level of saving increases
Factors influencing individual consumer choice
- income
- price
- price of substitutes
- price of complements
- preferences/tastes
- advertising
Sources of income
- the return for resources: wages, rent, interest and profits
- social welfare
The role of business in the economy
- The role of business in the economy
Definition of a firm and an industry
- Definition of a firm and an industry
A firm's production decisions
- what to produce
- what quantities to produce
- how to produce
Business as a source of economic growth and increased productive capacity
- Business as a source of economic growth and increased productive capacity
Goals of the firm
- maximising profits
- maximising growth
- increasing market share
- meeting shareholder expectations
- satisficing
Efficiency and the production process
- productivity
- internal and external economies of scale
- diseconomies of scale
Impact of investment, technological change and ethical decision-making on a firm through:
- production methods
- prices
- employment
- output
- profits
- types of products
- globalisation
- environmental sustainability.
Preliminary Topic Three - Markets44 items
Examine economic issues
- identify how business and governments can use information from the market
- examine the forces in an economy that tend to cause prices to rise
- identify reasons why government may intervene in certain markets
- explain how market solutions can lead to improved efficiency
- examine the nature of competition in markets characterised by oligopoly and monopoly
- identify some of the problems that can ensue with a heavy reliance on market solutions in an economy
- discuss how market forces can lead to environmental problems such as pollution
- propose alternatives to market solutions
Apply economic skills
- graph demand and supply curves and interpret the impact on the equilibrium of changes in market forces
- analyse non-equilibrium market situations and propose solutions to them
- calculate the price elasticity of demand using the total outlay method
- work in groups to investigate and report on the nature of competition within a specific industry.
The role of the market
- determining solutions to the economic problem
- the importance of relative price in reflecting opportunity costs in the goods and services and factor markets
Demand and supply
- Demand and supply
Demand
- law of demand, individual and market demand, the demand curve
- factors affecting demand - price, income, population, tastes, prices of substitutes and complements, expected future prices
- movements along the demand curve and shifts of the demand curve
Supply
- law of supply, individual and market supply, the supply curve
- factors affecting supply - price/cost of factors of production, prices of substitutes and complements, expected future prices, number of suppliers, technology
- movements along the supply curve and shifts of the supply curve
Market price
- market equilibrium - using diagrams
- movement to equilibrium
- effects of changes in supply and/or demand on equilibrium market price and quantity through the use of diagrams
- effects of changing levels of competition and market power on price and output
Alternatives to market solutions - the role of government
- ceiling prices, floor prices
- market failure - merit goods, public goods, externalities
Price elasticity of demand
- significance of price elasticity of demand - market research
- price elasticity
- elastic, inelastic and unit elastic
- calculation of elasticity using total outlay method
- factors affecting elasticity of demand
- necessities and luxuries
- existence of close substitutes
- proportion of income spent on the good
- the length of time since a price change
Price elasticity of supply
- elastic supply, inelastic supply
- factors affecting elasticity of supply (no calculations are required)
Variations in competition
- Variations in competition
Market structures
- pure competition
- monopolistic competition
- oligopoly
- monopoly.
- (Diagrams using revenue and costs for the market models are not required.)
Preliminary Topic Four - Labour Markets42 items
Examine economic issues
- analyse the factors that create differences in incomes from work
- compare and contrast wage and non-wage outcomes for individuals in different occupational groups
- examine the relationship between work and the quality of life
- analyse the arguments for and against a more equitable distribution of income from work
- assess the impact of labour market trends on individuals
- investigate the reasons for gender differences in labour market outcomes
- investigate recent trends in unemployment in Australia
- compare and contrast unemployment levels in different parts of Australia
- predict impacts on society and the economy of changes to the nature of work and the workforce
Apply economic skills
- compare and contrast the labour market with product markets
- research an outcome of the contemporary Australian labour market
- work in groups to investigate the efficiency and equity of labour market outcomes.
Demand for and supply of labour
- Demand for and supply of labour
The demand for labour by individual firms
- labour - a derived demand
- factors affecting demand
- output of the firm
- productivity of labour
- cost of other inputs
The supply of labour
- factors affecting the supply of labour
- pay/remuneration
- working conditions
- human capital, skills, experience, education/training levels
- occupational and geographic mobility of labour
- participation rate
The Australian workforce
- definition of the workforce
- employed
- unemployed
- general characteristics of the Australian workforce
Labour market outcomes
- Labour market outcomes
Differences in incomes from work
- wage outcomes for all persons by income groups, occupational groups, age, gender and cultural background
- trends in the distribution of income from work over time
- non-wage outcomes for different occupations
- arguments for and against a more equitable distribution of income from work
Labour market trends
- unemployment /underemployment
- part-time work
- casualisation of work
- outsourcing
- contractors
- sub-contracting
Labour market institutions
- unions
- employer associations
- current employment /industrial framework.
Preliminary Topic Five - Financial Markets36 items
Examine economic issues and apply economic skills
- examine the contribution of financial markets to the economic welfare of individuals and firms
- investigate the extent of competition in financial markets
- discuss the need for regulation in financial markets
Apply economic skills
- compare and contrast financial markets with product markets
- explain the role of institutions in the operation of financial markets
- analyse the impact of financial innovations on individuals and the economy
- work in groups to investigate the economic role of the superannuation industry
- analyse the factors that influence the level of interest rates
- predict trends in interest rates in hypothetical situations.
Financial markets in Australia
- Financial markets in Australia
Types of financial markets
- primary and secondary markets
- consumer credit, housing loans, business loans, short term money market, bond market, financial futures, foreign exchange
- the share market - its role, function and effect on the economy
- domestic and global markets
Regulation of financial markets - the role and functions of current institutions
- Reserve Bank of Australia
- Australian Prudential Regulation Authority
- Australian Securities and Investments Commission
- Australian Treasury
- Council of Financial Regulators
Borrowers
- individuals
- business
- government
Factors affecting the demand for funds
- transactions and speculative motives
- financial innovations
Lenders
- individuals
- business
- government
- international
Financial aggregates measured by the Reserve Bank of Australia
- currency
- broad money
- credit
Interest rates
- types of rates in the short term and long term
- lending rates
- borrowing rates
- role of the Reserve Bank of Australia in determining the cash rate
- influence of the cash rate on interest rates.
Preliminary Topic Six - Government and the Economy36 items
Examine economic issues
- assess the need for government intervention in a market economy
- examine how the operation of the free market without government intervention might affect the distribution of income, quality of life of individuals and the management of the environment
- evaluate the impact of different taxes on the distribution of income and wealth on business and on the allocation of resources in the economy
- evaluate the role of social welfare for an ageing population
- investigate alternative sources of revenue for governments
Apply economic skills
- determine whether a specific tax is progressive, proportional or regressive
- interpret Federal Budget data
- predict the impact of a budget deficit or surplus on economic activity
- discuss how monetary and fiscal policies can be used to stabilise economic activity
- analyse the performance of government business enterprises.
Government intervention in the economy
- Government intervention in the economy
Limitations of the operation of the free market
- provision of goods and services, public goods, merit goods
- inequality in the distribution of income - disadvantaged groups, relative poverty
- externalities and the environment - pollution, climate change
- monopoly power - the formation of monopolies, government-owned monopolies, privatisation, corporatisation and competition
- fluctuations in economic activity - the business cycle and the adverse effects of booms and recessions
The role of government
- The role of government
Functions of the three levels of government
- Functions of the three levels of government
Constitutional powers
- Constitutional powers
Size of the public sector
- Size of the public sector
Economic functions of the Australian Government
- reallocation of resources - types of taxes: direct and indirect, types of expenses
- redistribution of income - progressive, regressive and proportional taxes, social welfare payments
- stablisation of economic activity - a brief overview of the stabilising role of monetary and fiscal policies
- government business enterprises
- other - including competition and environmental policies
Federal Budget
- the budget process
- types of budgets - surplus, balanced, deficit
- revenue and expenses
Influences on government policies in Australia
- political parties
- business
- unions
- environmental groups/organisations
- welfare agencies
- the media
- other interest groups
- international.
Outcomes
| Code | A student |
|---|---|
| P1 | demonstrates understanding of economic terms, concepts and relationships |
| P2 | explains the economic role of individuals, firms and government in an economy |
| P4 | compares and contrasts aspects of different economies |
| P5 | analyses the relationship between individuals, firms, institutions and government in the Australian economy |
| P7 | identifies the nature and causes of economic problems and issues for individuals, firms and governments |
| P9 | selects and organises information from a variety of sources for relevance and reliability |
| P10 | communicates economic information, ideas and issues in appropriate forms |
| P12 | works independently and in groups to achieve appropriate goals in set timelines. |
| P8 | applies appropriate terminology, concepts and theories in economic contexts |
| P3 | describes, explains and evaluates the role and operation of markets |
| P11 | applies mathematical concepts in economic contexts |
| P6 | explains the role of government in the Australian economy |
| H1 | demonstrates understanding of economic terms, concepts and relationships |
| H2 | analyses the economic role of individuals, firms, institutions and governments |
| H3 | explains the role of markets within the global economy |
| H4 | analyses the impact of global markets on the Australian and global economies |
| H5 | discusses policy options for dealing with problems and issues in contemporary and hypothetical contexts |
| H6 | analyses the impact of economic policies in theoretical and contemporary Australian contexts |
| H7 | evaluates the consequences of contemporary economic problems and issues on individuals, firms and governments |
| H8 | applies appropriate terminology, concepts and theories in contemporary and hypothetical economic contexts |
| H9 | selects and organises information from a variety of sources for relevance and reliability |
| H10 | communicates economic information, ideas and issues in appropriate forms |
| H11 | applies mathematical concepts in economic contexts |
| H12 | works independently and in groups to achieve appropriate goals in set timelines. |