Towards 2010 VCE Economics

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Presenters: Anita Forsyth – Monash University David MacGregor – Mazenod College

This workshop will discuss the rationale for changes in the study outline the reaccredited study design and summarise the key changes discuss internal assessment outline some possible teaching and learning approaches include time for questions

The reaccredited VCE Economics Study Design To commence in 2010 Go to VCAA website ( for copy of Study Design (which includes comprehensive advice for teachers section), list of changes to study and list of resources (available at this time) Teachers will be informed via the VCAA Bulletin when the Assessment Handbook is available. From 2009 all assessment handbooks will be published online only. Sample examination questions will be prepared

Rationale for changes to Study Design Informed by: VCAA research paper and benchmarking against national and international post compulsory Economics courses A number of changes recommended by teachers through surveys and focus groups

Issues Across Units 1 – 4 Providing more opportunity to refer to the latest ‘big ideas’ and developments concerning economics Building on the knowledge, skills and approaches of VELS Streamlining and clarifying content in Units 3 & 4

Issues (cont’d) Units 1 and 2 Broadening the number of market case studies More opportunities to consider global perspectives across the units More flexibility to consider current events and incorporate them into teaching and learning Providing more emphasis on the economy and the environment and economic security

Issues (cont’d) Unit 1 and 2 (con’t) Greater clarity and detail within key knowledge and key skills More microeconomics perspectives in Units 1 & 2 More choice for teachers and students to select topics that are relevant to their needs and contexts – catering for individual interests

Issues Units 3 & 4 Start with micro understandings before developing macro More specification about what needs to learned Policy analysis and discussion about economic objectives need to reflect current thinking Crowded nature of study Do students need to know 10 year trends? Need to incorporate material that reflects current concerns such as issues around economic security, the standard of living, global perspectives

Reaccredited Study Design and key changes Unit 1 - Economics: choices and consequences Unit 2 - Economic change: issues and challenges Unit 3 - Economic activity Unit 4 - Economic management

Unit 1 - Economics: choices and consequences Area of Study 1 – A market system Extra market choices added such as online, transport and health markets. More detail about the ‘big ideas’ to be included such as: the degree of market power in different markets the range of strategies used by economic agents to achieve their goals such as business – multiple branding and anti-competitive behaviour

Unit 1 - Economics: choices and consequences (cont’d) Area of Study 2 – Economic issues Economic growth and sustainable development PLUS one other contemporary economic issue chosen from: Creation and distribution of wealth and income Inflation An economic issue selected by the teacher and/or students – this will be based on an inquiry approach into any topic of choice (could be an in depth inquiry related to any issue above and/or any other pertinent economic issue) Issues all have the scope for teachers and students to explore local, national and international perspectives as well as possible economic policies and actions.

Unit 1 - Economics: choices and consequences (cont’d) Possible timeline (assuming semester of approx 16 – 18 weeks): Area of study 1: 6 weeks Area of study 2: weeks Economic growth and sustainable development 5 to 6 weeks Contemporary economic issue of choice 5 to 6 weeks

Unit 2 Economic change: issues and challenges This unit continues an issues approach Area of study 1– Population, employment and change Area of study 2 – Global economic issues teachers select two issues from: -International economic relations -Development economics -Economic globalisation -A global economic issue selected by the teacher and/or students

Unit 2 Economic change: issues and challenges Possible timeline : Assuming 16 – 18 weeks Area of study 1– Population, employment and change – 6 weeks Area of study 2 – Global economic issues Teachers select two issues 5 – 6 weeks for each issue

Units 1 & 2 Assessment Assessment is school based and teacher assessed Assessment tasks should be part of the regular teaching and learning program Select a variety of assessment tasks to provide for different learning styles

Units 1 & 2 Assessment (cont’d) Select assessment tasks from lists provided on pps. 16 and 21 of Study Design. One new choice has been added - a folio of annotated media commentaries using print or electronic materials. This assessment could be used following the media log teaching and learning activity on pps. 42 – 43 of Study Design.

Unit 3: Economic activity Area of Study 1 - An introduction to Microeconomics: The market system and resource allocation This area of study is now devoted to microeconomics Price determination Market structure

Unit 3: Economic activity Key knowledge Factors influencing the decisions made by key economic agents Specific microeconomic demand and supply side factors Specific factors affecting elasticity of demand and supply with respect to price. (in the current study design this was left open)

Unit 3: Economic activity Market structure and how this may impact upon prices, efficiency and living standards (a new addition to the Study Design) Market failure – students only expected to know main forms specified (clarifies what market failure is) Introduction to government intervention NOTE: No longer look at macroeconomics in this Area of study

Unit 3: Economic activity Area of Study 2 - Introduction to macroeconomics: Output, employment and income (similar to Area of study 1 in current Study Design) Economic activity Government economic goals Nature and purpose of macroeconomic activity emphasis on the meaning and factors that may influence material and non-material living standards (new addition to SD)

Unit 3: Economic activity Key Economic Goals (no longer called objectives) A recognition that government goals can change over time Low inflation - using RBA definition of this goal (referred to as price stability in the current Study Design)

Unit 3: Economic activity Strong and sustainable economic growth Full employment External stability (including a discussion of free trade) Equity in the distribution of income Note: Efficiency is no longer taught as a separate goal

Unit 3: Economic activity No longer expected to have knowledge of the last decade – emphasis on the last 4 years No longer need to know relationship between objectives – except where stated explicitly Impact of each goal on living standards With economic growth need some knowledge of factors that may influence future rates of growth (addition to study design)

Unit 3: Economic activity Possible Timeline (assuming 18 weeks) Area of Study 1 – 6 to 7 weeks Area of Study 2 – 11 to 12 weeks Approximately 2 weeks on each economic goal and 2 weeks on the introductory material on living standards

Unit 4: Economic management Area of Study 1 - Macroeconomic demand management policies referred to as macro policies in current study design Budgetary Policy Monetary Policy

Unit 4: Economic management Budgetary policy Nature and operation unchanged Ways budgetary policy influences aggregate demand to influence inflation, employment, economic growth Use of budgetary policy to influence equity and external stability (note separation) Knowledge of key initiatives from last 4 years emphasised

Unit 4: Economic management Monetary Policy Nature and operation How it may affect the level of aggregate demand (transmission mechanisms) Effect on inflation, employment and economic growth only Knowledge of the last 4 years only

Unit 4: Economic management Macroeconomic demand management policies Relationship between monetary policy and budgetary policy in the management of aggregate demand (different to current study design where need to know role of macro policies in policy mix)

Unit 4: Economic management Area of Study 2 - Aggregate supply policies Expansion of productive capacity Impact on key economic goals and living standards

Unit 4: Economic management Microeconomic Reform Policies Students only need to know one Microeconomic reform in detail Choose from: National Competition Policy Labour market reform Deregulation of key markets Trade liberalisation

Unit 4 – Economic management Microeconomic Reform Policies Relate chosen policy to economic goals and living standards rather than just focus on competitiveness and efficiency (as per current Study Design) Note: changes to the tax mix is looked at under budgetary policy

Unit 4: Economic management Budgetary Policy How budgetary policy may affect the level of aggregate supply (taxation mix, infrastructure)

Unit 4: Economic management Immigration policy Impact on labour market and aggregate supply Environmental policy Examination of one policy and its impact on aggregate supply, with an emphasis on long term economic security.

Unit 4: Economic management Policy mix Relationship between aggregate demand and aggregate supply policies

Unit 4: Economic management Possible timeline assuming 14 to 15 weeks Aggregate demand policies – 6 weeks 3 weeks budgetary policy 3 weeks monetary policy Aggregate supply policies – 6 weeks 3 weeks microeconomic reform policy 1 week budgetary policy 1 week immigration 1 week environment Revision - 3 weeks

Units 3 and 4 Assessment School-assessed coursework No changes to SAC structure A range of assessment tasks available new addition – a folio of media commentaries using print and/or electronic media Assessment tasks to be completed mainly in class and within a limited timeframe

Questions

With Thanks: CPAP for the organisation of the workshops VCE Economics Implementation Workshops May – June, 2009

Contact Details Jennifer Quick Curriculum Manager Business Studies Victorian Curriculum and Assessment Authority (VCAA) Ph: (03) Fax: (03)