NCEA Level 2 Economics
12ECO Course DescriptionTeacher in Charge: Mr M. Terry.
Recommended Prior LearningEligibility to study NCEA Level 2. While Level 1 Commerce (CEA or CBA) will be useful, it is not a pre-requisite for Level 2.
This course looks at the macroeconomic issues facing New Zealand. For each of inflation, international trade, economic growth, unemployment, students see how it is measured, its causes and impact and the application of an economic model. The role of government is examined in its role to implement monetary and fiscal policy, to regulate and deregulate and to promote free trade or protection.
The course looks at each of:
- Causes of inflation, the impact of inflation on various groups and the use of economic models to show why it occurs.
- The causes of changes in trade, the impact on various groups, the components of international trade and the balance on Current Account. The application of the supply and demand model on commodity trade and foreign exchange.
- Measurement of economic growth, influences on growth and its impact on various sectors and the environment.
- Measurement of unemployment, the impact on various groups and the use of economic models to show why it occurs.
- Design of government policies and show, using economic models, how these will achieve desired objectives
Course Overview
Term 1
Introductory skills – supply and demand, market equilibrium
Unemployment – definitions, statistics, measures
Types of unemployment,
Labour Market model, shifts of supply and demand
Minimum wage and shifts.
Aggregate Supply and Aggregate demand model and shifts in AD and AS
Social and economic aspects of unemployment
Term 2
Inflation - definitions
Measuring inflation – CPI, PPI
AS/AD model
Business cycle, Quantity theory
Effects of Inflation on Households/Businesses
Government policies to control inflation
Term 3
Economic Growth – GDP definitions, circular flow model and approaches
Productive capacity (PPF), net social welfare
AS/AD model – causes of growth
Effects of growth
Government policies and economic growth
Government policies and economic issues
Trade – definitions and statistics. Export, Imports
Comparative Advantage, Two Country Model
Small Country Model, Balance of payments
Term 4
Revision
NCEA examination
Pathway
Economics can be studied right through university towards a bachelor degree, masters degree and doctorate. There are several areas to specialise in in later study. Macroeconomics which is relevant to careers with the Reserve Bank, Treasury, various economic institutes, domestic and international banking and finance companies. Econometrics leads to opportunities in Statistics NZ, actuary firms, insurance and polling firms. Microeconomics and Management science are branches of economics of interest to industry, health, airlines and freight logistics firms.
Contributions and Equipment/StationeryWorkbook $30