Year 13 Economics

Subject Overview

Term 1
Teaching and Learning Economics 3.3 internally assessed standard.
Purpose
Demonstrate understanding of micro-economic concepts.
This involves:
• providing a detailed explanation of micro-economic concepts
• using an economic model(s) to support detailed explanation
• using data or information to support detailed explanation.
• using a detailed explanation, supported by models and data, and/or information to justify implications of micro-economic concepts for a consumer(s), producer(s) and/or government.
Micro-economic concepts refer to: marginal utility and demand, diminishing returns and supply, elasticity of demand, elasticity of supply, market structures (excluding perfect competition and monopoly), and role of prices and profits in determining resource allocation.

Term 2
Teaching and Learning Economics 3.1 externally assessed standard. Also, Teaching and Learning Economics 3.4 internally assessed standard.

Economics 3.1
Purpose
Demonstrate understanding of the efficiency of market equilibrium.
This involves:
• providing a detailed explanation of:
 market equilibrium and/or changes in market equilibrium
 impact of changes in markets on efficiency in the market
• analysing the impact of a change in a market on efficiency by comparing and/or contrasting the different impacts on participants (ie consumer, producer and, where appropriate, government) in that market
• integrating an economic model(s) into explanations relating to the efficiency of market equilibrium that compare and/or contrast the different impacts.
Efficiency refers to allocative efficiency of market equilibrium which occurs when the sum of consumer and producer surpluses are maximised (so ‘total surpluses’ are maximised). This includes recognising that deadweight loss indicates a market is allocatively inefficient.
Market equilibrium includes:
• market equilibrium as a result of the operation of market forces; or
• impact of changes on markets, including the impact on consumer surplus, producer surplus, and total surpluses. This typically includes changes in international trade markets and/or changes imposed on market equilibrium by government.

Economics 3.4
Purpose
Demonstrate understanding of government interventions where the market fails to deliver efficient or equitable outcomes.
This involves:
• providing a detailed explanation of:
 why the market may not be delivering efficient or equitable outcomes
 government interventions
 the implications of the government interventions for equity and efficiency
• using an economic model(s) to support a detailed explanation(s).
• using a detailed explanation to make a justified recommendation on which government intervention is better in terms of efficiency and equity
• integrating an economic model(s) into the justified recommendation.
Situations where the market fails to deliver efficient or equitable outcomes include:
• consumption externalities, production externalities, public goods, imperfect information, inequitable income and/or wealth distribution, under-provision of a merit good or service.
Government interventions refer to interventions by central or local government. For example, these may include, but are not limited to:
• subsidies, taxes, regulations, property rights, government provision (consumption externalities)
• subsidies, taxes, regulations, property rights, government provision (production externalities)
• government provision (public goods)
• regulation (imperfect information)
• progressive taxes, welfare benefits, collective provision, minimum wage (inequitable income and/or wealth distribution)
• collective provision, government grants, targeted services (under-provision of a merit good or service).

Term 3
Teaching and Learning Economics 3.5 externally assessed standard.
Purpose
Demonstrate understanding of macro-economic influences on the New Zealand economy.
This involves:
• providing an explanation of the current state of the New Zealand economy in relation to macro-economic goals
• identifying, defining, calculating, and describing or providing an explanation of macro-economic influences on the New Zealand economy
• providing a detailed explanation of macro-economic influences on the New Zealand economy
• using an economic model(s) to illustrate complex concepts and/or support detailed explanations of macro-economic influences on the New Zealand economy.
• comparing and/or contrasting:
 the effectiveness of one government policy in achieving different macro-economic goals and/or the effectiveness of different government policies in achieving one macro-economic goal
 the impacts of one macro-economic influence on the New Zealand economy in relation to different macro-economic goals and/or the impacts of different macro-economic influences on the New Zealand economy in relation to one macro-economic goal
• integrating an economic model(s) into explanations of macro-economic influences on the New Zealand economy that compares and/or contrasts the impacts on macro-economic goal(s).
Macro-economic influences refer to internal factors (eg changes in government policies, consumption, savings and investment) and external factors (eg changes in net exports, terms of trade, exchange rates, trade agreements and the world economy) that affect the economy.
Economy refers to the system of production, distribution, and consumption of goods and services in a country. This includes:
• relevant macro-economic indicators used to describe the current state of the economy (eg inflation rate, growth rate, current account balance, unemployment rate) and/or the current position on the business (trade) cycle; and/or
• macro-economic goals of government (eg price stability, balanced current account, economic growth and full employment).

Term 4
Revision of Economics 3.1 and 3.5 externally assessed standards.