Download Level 3 Economics

Business Studies 2016
Economics Level 3 Course Outline
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit
of Mary.
Curriculum Statement
At Level Eight in the New Zealand curriculum students look at Competitive markets,
,Marginal analysis, Microeconomic concepts, Government interventions and
Macroeconomic influences
Key ideas include:


Scarcity results in choices with opportunity costs
Values influence economic choices
Markets provide incentives and ration scarce resources
Perfectly competitive markets are efficient
Market failure may require government intervention
The benefits of market activities may not be equitable

Government intervention may involve an equity–efficiency trade-off




Achievement objectives are that student should
Understand that well-functioning markets are efficient but that governments may
need to intervene where markets fail to deliver efficient or equitable outcomes.
Understand how the nature and size of the New Zealand economy is influenced by
interacting internal and external factors.
Course Expectations
Students are expected to be present in class and to complete both in-class and outof-class tasks. They are expected to engage in the learning and discussion of the
concepts and economic models studied and to revise this knowledge through the
course of the year.
Students will complete 2 Internal Assessment Standards, worth a total of 10 credits,
and the learning required for 2 External Assessment Standards, worth a further 10
credits.
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit
of Mary.
3
3
91399
Demonstrate
Understanding
Efficiency
of
Equilibrium
Version 1
Approx
In-progress checks
Term 1, Week 10 & 11
Date
Method used
authenticate
student work
I
External [E]
Value
Credit
to
3.1
4 periods
Hand in all work From April 7/8
each class
N/A
End Of Year Exam
4
E
of the
Market
External
exams
November.
91402
5
I
In-progress checks
Demonstrate
Version 1
understanding
of
Government Interventions
to Correct Market Failure
3.5
3
5
Demonstrate
Version 1
Understanding of MicroEconomic Concepts
3.4
3
91401
Internal [I]
3.3
Number
& Version
Standard
Level
Standard
Reference number
and title
NCEA
Assessment Calendar
91403
Demonstrate
Version 1
Understanding of MacroEconomic Influences on
the NZ Economy
in
Term 3, Week 3
Thurs, August 11
Hand in Research Assignment
Project
6
E
N/A
Mid-Year exam
End Of Year Exam
External
Exam
November
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit
of Mary.
In
Standards Outline
Topic
AS 91399
Demonstrate understanding of the efficiency of market equilibrium
Achievement
Achievement with Merit
Achievement with Excellence
 Demonstrate
understanding of the
efficiency of market
equilibrium.
 Demonstrate in-depth
understanding of the
efficiency of market
equilibrium.
 Demonstrate comprehensive
understanding of the
efficiency of market
equilibrium.
Content Outline:




Market equilibrium
Consumer and producer surplus
Deadweight loss
Distortions of the market
Glossary of Key Terms








Market equilibrium - where quantity demanded equals quantity supplied
Consumer surplus – the extra value consumers receive from a product
beyond the price they pay
Producer surplus - the extra value producers receive for a product beyond the
price they receive
Deadweight loss – the loss in surplus that goes to no-one
Minimum price – when the government sets a price below which it is illegal to
sell a product
Maximum price – when the government sets an upper limit on price for a
product above which it is illegal to sell
Sales tax – when there is a tax charged on each unit of a product sold
Subsidy – when the producer receives a payment from the government for
each unit of a product they sell
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit
of Mary.
Topic:
AS 91401
Demonstrate understanding of micro-economic concepts
Achievement
Achievement with Merit
Achievement with Excellence
 Demonstrate
understanding of microeconomic concepts.
 Demonstrate in-depth
understanding of microeconomic concepts.
 Demonstrate comprehensive
understanding of microeconomic concepts.
Content Outline
 Utility and demand
 Elasticity
 Costs and supply









Glossary of Key Terms
Utility – the satisfaction you get from consuming a product
Marginal utility – the satisfaction you get from consuming an extra unit of a
product
Elasticity of demand – the responsiveness of quantity demanded of a product
to a change in its price
Elasticity of supply – the responsiveness of quantity supplied of a product to a
change in its price
Inelastic – when elasticity has a value of less than one
Elastic – when elasticity has a value greater than one
Marginal cost – the extra cost of supplying one more unit of a product
Average cost – the average cost of supplying a produc
t
Topic:
AS 91402
Demonstrate understanding of government interventions to correct for market failure
Achievement
Achievement with Merit
 Demonstrate
 Demonstrate in-depth
understanding of
understanding of
government interventions
government interventions
to correct market failures.
to correct market failures.
Achievement with Excellence
 Demonstrate comprehensive
understanding of government
interventions to correct
market failures.
Content Outline
 Market failure
 Government intervention
 Deadweight loss
 Types of government intervention
 Net social gain and loss
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit
of Mary.
Glossary of Key Terms
 Market failure – when the market does not maximise surpluses
 Surplus – the extra value consumers and producers receive above the price
they pay or receive for a product
 Deadweight loss – the lost amount of a surplus that does not go to anyone
 Government intervention – when the government intervenes in the economy to
achieve economic objectives
 Net social gain/loss – the overall impact on society of a government
intervention
 Spillover costs – extra costs (or benefits) that accrue to society from the
actions of private firms or individuals
 Positive externalities – when private actions result in benefits for society
 Negative externalities – when private actions result in costs for society
Topic:
AS 91403
Demonstrate understanding of macro-economic influences
Achievement
Achievement with Merit
Achievement with Excellence
 Demonstrate
understanding of macroeconomic influences on
the New Zealand
economy.
 Demonstrate in-depth
understanding of macroeconomic influences on
the New Zealand
economy.
 Demonstrate comprehensive
understanding of macroeconomic influences on the
New Zealand economy.
Content Outline
 Circular flow
 GDP and CPI
 Government policies – monetary, fiscal, supply side and trade
Glossary of Key Terms
 Nominal Gross Domestic Product (GDP) – the dollar value, in today’s dollars,
of all final goods and services produced in the economy in one year
 Real GDP – the dollar value, in inflation-adjusted dollars, of all final goods and
services produced in the economy in one year
 Real GDP per Capita – real GDP divided by the population
 Consumer Price Index (CPI) – the consumer price index, measures the value
of a basket of goods and services as purchased by an ‘average’ household
 Producer Price Index (PPI) – measures the prices of producers’ inputs and
outputs
 Quarter – the division of the economic year into four equal parts for purposes
of statistical measuring
 Macro-economic – the economy as a whole
 Fiscal Policy – when the government alters its spending and revenue to
achieve economic goals
The Marist College community is committed to fostering excellence in education founded on living Catholic values and the spirit
of Mary.