Year 11 Economics

Subject Overview

Term 1
History of Economics (no formal assessment)
• Students learn about a range of economists, dating back to Adam Smith, “the father of economics.”
• Students work through a research task based on their chosen economist.
Circular flow (open book written report)
• Gain an understanding of what makes up the New Zealand Economy.
• Understand the interdependence of sectors in the New Zealand economy.
• Provide a detailed explanation of how or why sectors are interdependent, using an economic model.
• Understand the impact of an event on a sector with detailed explanations of the flow-on effects to other sectors, using an economic model.

Term 2
Demand (mid-year examination)
• Understand consumer choices related to scarcity.
• Understand consumer demand and the demand curve.
• Understand flow-on effects for the consumer and different choices consumers make in response to a change in conditions.
Supply (mid-year examination)
• Understand producer choices using the concept of supply and the supply curve.
• Understand flow-on effects for producers and different choices producers make in response to a change in conditions.

Term 3
Markets (end-of-year examination)
• Students are introduced to the supply and demand model, using it to explain how producer, consumer and/or government choices affect market equilibrium and different sectors in the economy.
• Understand how to integrate and explain the following changes using the supply and demand model:
 Implementation of a sales tax
 Implementation of a subsidy
 Implementation of a maximum price control
 Implementation of a minimum price control
• Understand the tariff model and its impact on different sectors in the economy.
• Understand the economic relationship between consumers and producers using the concepts of consumer surplus and producer surplus.
Trade (begins Term 3 and flows into Term 4) (end-of-year examination)
• Understand what trade is, including imports and exports.
• Reasons for trade in New Zealand.
• Understand free trade vs protectionism.
• Understand how exchange rates work.
• Economic modelling of the foreign exchange market, two country model and the price taker model.

Term 4
Government (end-of-year activity, no formal assessment)
• Understand the free-market vs socialism.
• Understand what public goods, merit goods and demerit goods are.
• Understand equity and inequality.
• Understand how the Lorenz Curve illustrates the distribution of income.
• Students prepare a presentation in small groups.