Subject description

Economics is a 10-credit subject or a 20-credit subject at Stage 1.

Economics is the study of how resources are allocated so that goods and services are produced, distributed, and exchanged to satisfy the unlimited needs and wants of society.

What happens in an economy depends on the choices that millions of people make every day when they interact with each other, with markets, with the government, and with their natural surroundings. Each interaction affects the behaviour of others and by seeing the world through an economic lens we are provided with the insight necessary to make more informed decisions in our daily lives.

On a broader scale, Economics enables us to analyse how the entire economy works and which issues are affecting it, including allocation of resources, inflation, economic growth, and government policies. Economics helps us tackle the most important issues facing humanity today.

An economic outlook is therefore about much more than money. Our interactions, and the outcomes of our interactions, shape the society we live in.

Students explore and analyse a variety of authentic economic contexts to develop, extend, and apply their skills, knowledge, understanding, and capabilities. By studying Economics, students develop an understanding of different economic systems and institutions, and learn to assess the degree to which these systems and institutions satisfy people’s needs and wants.

At Stage 1, students study the four economics concepts of scarcity, choice, opportunity cost, and the cause and effect of economic decisions. They apply their learning of these concepts to authentic economic contexts to develop their understanding of the economic principles that underpin decision-making.

Capabilities

The capabilities connect student learning within and across subjects in a range of contexts.

The SACE identifies seven capabilities.

Literacy

In this subject students extend and apply their literacy capability by, for example:

• using communication strategies to engage in collaborative projects and tasks
• constructing reasoned arguments and evidence-based conclusions
• interpreting and analysing economic information
• becoming competent and confident authors of economic information
• using accurate and appropriate terminology to explain economic concepts
• communicating economic information using a range of formats.

Numeracy

In this subject students extend and apply their numeracy capability by, for example:

• using models to illustrate economic relationships, including the effect of changing a variable
• analysing data to explain economic activity
• displaying data in a range of graphs and tables.

Information and communication technology (ICT) capability

In this subject students extend and apply their ICT capability by, for example:

• using digital technologies to locate and access economic information
• investigating the impact of technological innovation in an economy
• using digital technologies to extract, interpret, and analyse economic information
• using digital technologies to present findings
• using digital technologies to work collaboratively. 

Critical and creative thinking

In this subject students extend and apply their critical and creative thinking capability by, for example:

• applying economic concepts, principles, and skills in a variety of contexts
• applying economic thinking to consider the cause and effect of economic decisions
• analysing the intended and unintended consequences of economic decisions.

Personal and social capability

In this subject students extend and apply their personal and social capability by, for example:

• understanding that economic reasoning can offer insight into many of the issues that society must deal with
• appreciating how economics influences their daily lives
• investigating the factors influencing an individual consumer’s choice
• predicting how the decisions they make today can affect their future quality of life
• collaborating with others to collect and interpret data
• considering how the needs of consumers, producers, government, and society are affected by economic markets
• sharing and discussing ideas about problems, progress, and innovative solutions
• listening to and respecting the perspectives of others. 

Ethical understanding

In this subject students extend and apply their ethical understanding capability by, for example:

• developing an understanding that market outcomes may conflict with social and ethical outcomes
• acknowledging and referencing the ideas of others
• developing responsible attitudes towards using limited resources in a productive, ethical, and sustainable way. 

Intercultural understanding

In this subject students extend and apply their intercultural understanding capability by, for example:

• exploring economic issues in local, national, and global contexts to expand their knowledge of diverse individuals, groups, and societies
• respecting and engaging with different cultural views and customs, and exploring these interactions
• recognising that engaging with different perspectives enhances their own knowledge, understanding, and perspectives.

Aboriginal and Torres Strait Islander knowledge, cultures, and perspectives

In partnership with Aboriginal and Torres Strait Islander communities, and schools and school sectors, the SACE Board of South Australia supports the development of high-quality learning and assessment design that respects the diverse knowledge, cultures, and perspectives of Indigenous Australians.

The SACE Board encourages teachers to include Aboriginal and Torres Strait Islander knowledge and perspectives in the design, delivery, and assessment of teaching and learning programs by:

• providing opportunities in SACE subjects for students to learn about Aboriginal and Torres Strait Islander histories, cultures, and contemporary experiences
• recognising and respecting the significant contribution of Aboriginal and Torres Strait Islander peoples to Australian society
• drawing students’ attention to the value of Aboriginal and Torres Strait Islander knowledge and perspectives from the past and the present
• promoting the use of culturally appropriate protocols when engaging with and learning from Aboriginal and Torres Strait Islander peoples and communities.  

Learning requirements

The learning requirements summarise the knowledge, skills, and understanding that students are expected to develop and demonstrate through their learning in Stage 1 Economics.

In this subject, students are expected to:

1. understand economic concepts, principles, and models
2. apply economic concepts, principles, and models in a variety of contexts
3. apply communication skills in economic contexts
4. apply economic thinking to construct arguments
5. analyse a range of data and other information using economic concepts, principles, and models
6. analyse the intended and unintended consequences of economic decisions.

These learning requirements form the basis of the:

• learning scope
• evidence of learning that students provide
• assessment design criteria
• levels of achievement described in the performance standards.

Teaching and learning framework 

Stage 1 Economics is a 10-credit subject or a 20-credit subject.

In the core topic 'Thinking like an economist' students develop knowledge and understanding of:

• economic concepts
• economic inquiry skills
• data analysis.

Teachers facilitate student learning of these skills and conceptual understandings using problem-based scenarios from different contexts.

Students are provided with opportunities to demonstrate application of their learning in a variety of contexts. When developing teaching programs, teachers determine the depth and breadth for each context.

In a 10-credit subject, teachers propose scenarios from one or more different contexts.

In a 20-credit subject, teachers propose scenarios from two or more different contexts.

The following section discusses the core topic and potential contexts for Stage 1 Economics in more detail.

Core topic: Thinking like an economist

Students develop economic thinking by using economic inquiry skills, knowledge, and understanding of economic concepts, principles, and models in different contexts. Students apply economic thinking in the analysis of economic issues evident in a variety of scenarios.

Students apply economic thinking to analyse and respond to economic issues.

The knowledge, skills and understanding of economic thinking at Stage 1 are:

• economic concepts
• economic inquiry skills
• data analysis.

Economic concepts

Students develop an understanding of the fundamental economic problem: that human wants are unlimited but the resources available to satisfy these wants are scarce.

They explore and develop an understanding of the relationship between the economic concepts of scarcity, choice, opportunity cost, and the cause and effect of economic decisions.

Scarcity

Students develop an understanding of the limited nature of resources, and how scarcity leads to choices having to be made so that resources may be allocated efficiently.

Students develop an understanding that scarcity is a relative concept. That is, resources are only ‘scarce’ because humans want more than resources can provide.

Choice

Students develop an understanding that consumers, firms, and governments have to make choices. They develop an understanding of the factors that are considered when making those choices. Students analyse the intended and unintended consequences of those choices.

Opportunity cost

Students explore the concept of trade-offs, and develop an understanding that scarcity leads to choices having to be made. Opportunity cost is what is foregone when a choice is made. Opportunity cost can help consumers, producers, and governments make decisions.

Cause and effect

Students explore economic relationships and develop an understanding of the rationale for decisions, and the consequences of those decisions on individuals, firms, the economy, and society.

Economic inquiry skills

Students use an inquiring, critical, and thoughtful approach to their study of economics. They investigate scenarios and economic problems by:

• applying economic concepts, including scarcity, choice, opportunity cost, and cause and effect of economic decisions, in a variety of economic contexts
• applying principles, models, and terminology appropriately in a variety of economic contexts
• identifying specific economic objectives and asking relevant questions
• analysing the rationale for economic decisions and their intended and unintended consequences
• communicating reasoned arguments.

Data analysis

Students develop an understanding of a range of qualitative and quantitative economic data. They collect and analyse data in order to explain economic activity.

Students use appropriate graphs, diagrams, and tables to display results that support their arguments.

Economic contexts

In Stage 1 Economics, students learn through inquiry. Teachers integrate problem-based scenarios from different contexts to facilitate development of students' skills and conceptual  understandings.

Teachers select scenarios for inquiry based on the interests and needs of their students so that economic concepts and skills from the core topic (thinking like an economist) are integrated in authentic ways. Teachers determine the depth and breadth of each context for their teaching programs.

Teachers ensure that economic concepts and skills are integrated, as appropriate, over the range of scenarios studied. Individual scenarios may focus on selected concepts and skills, and students may explore further economic concepts as appropriate.

The following contexts may form the basis for teachers to present scenarios for inquiry:

• markets in action
• economic decision-making
• government involvement in the economy
• trade in the global economy
• school-developed context.

Markets in action

Markets in action provides an introduction to the nature of markets, and how market forces interact to allocate scarce resources.

The interaction of buyers and sellers in free markets enables goods, services, and resources to be allocated prices. Relative prices, and changes in prices, reflect the forces of demand and supply and help solve the economic problem. Resources move towards where they are in shortest supply, relative to demand, and away from where they are least demanded.

In developing an understanding of this mechanism, students investigate the interaction of consumer behaviour, demand, seller behaviour, and supply. They use the demand–supply model to determine price and to explain price changes and the effect of price changes on quantity traded.

Students use the demand–supply model to understand the determination of equilibrium market price, examine the factors that affect demand and supply, investigate why price changes, analyse the effect of price changes on quantity traded; and investigate and recognise market failure.

Economic decision-making

In understanding strategic decision-making within the context of a market, students delve into the decision-making environment through the analysis of the extent and characteristics of different market structures which affect choice behaviour among participants in the market.

Students explore the basis of categorisation of these behaviours as they deepen their understanding of the role of participants in the market. Students develop an understanding of outcomes in the market which occur as a result of the motivations, opportunities, and decision-making abilities of consumers and firms within the market. The framework of these structural variables is explored through the following:

• monopolies
• oligopolies
• monopolistic competition
• perfect competition.

Students explore production choices using the production possibility frontier (PPF) model to illustrate the concepts of opportunity cost, trade-offs, and the effects on economic growth.

Students investigate factors that influence economic capacity, including technology and changes in the supply of the factors of production, and analyse their impact.

Students develop an understanding and ability to make decisions using cost-benefit analysis (CBA) as a technique in decision-making used by economists.

Students understand and explore the ideas of private costs and benefits, external costs and benefits, and social costs and benefits, and how these are used by economists to guide decision-making.

Government involvement in the economy

Students develop an understanding of situations where a government takes action in an economy to modify market outcomes. They consider the following government involvement:

• allocation of resources to the production of goods and services that are undersupplied by the market
• redistribution of income in order to address inequality
• regulation of situations where the market solution may be inconsistent with society’s values, or may incur costs for those not involved in making the economic decision
• stabilisation of the economy (e.g. taking measures to achieve stated objectives such as full employment, price stability, and/or economic growth).

Students refer to the circular-flow model to explore the effects of government involvement in the economy.

Trade in the global economy

Students develop an understanding of arguments for and against the free trade of goods and services between nations. They explore the concept of specialisation and interdependence.

Students use comparative advantage to explore the costs and benefits involved when individuals and nations specialise. They analyse trade-protection strategies used to achieve economic outcomes.

School-developed context

Teachers can choose to develop a scenario in which students have the opportunity to apply economic concepts and skills.

Evidence of learning

Assessment at Stage 1 is school based.

The following assessment types enable students to demonstrate their learning in Stage 1 Economics

• Assessment Type 1: Folio
• Assessment Type 2: Economic Project.

For a 10-credit subject, students provide evidence of their learning through three assessments:

• two folio tasks
• one economic project.

Each assessment type should have a weighting of at least 20%.

One task could be undertaken as a collaborative task.

For a 20-credit subject, students provide evidence of their learning through six assessments:

• four folio tasks
• two economic projects.

Each assessment type should have a weighting of at least 20%.

Assessment design criteria

The assessment design criteria are based on the learning requirements and are used by teachers to:

• clarify for the student what they need to learn
• design opportunities for students to provide evidence of their learning at the highest possible level of achievement.

The assessment design criteria consist of specific features that:

• students should demonstrate in their learning
• teachers look for as evidence that students have met the learning requirements.

For this subject the assessment design criteria are:

• understanding
• application
• analysis.

The specific features of these criteria are described below.

The set of assessments, as a whole, must give students opportunities to demonstrate each of the specific features by the completion of study of the subject.

Understanding   

The specific features are as follows:

Application 

The specific features are as follows:

Analysis  

The specific features are as follows: 

School assessment

The school assessment component for Stage 1 Economics consists of two assessment types:

• Assessment Type 1: Folio
• Assessment Type 2: Economic Project.

Assessment Type 1: Folio

The folio should consist of a balanced program of tasks that assess the skills, knowledge, and understanding of Stage 1 Economics.

For a 10-credit subject, students undertake two folio tasks.

For a 20-credit subject, students undertake four folio tasks.

Students demonstrate application of their understanding of economic concepts, principles, and models in a variety of known and unknown contexts. They apply their inquiry skills and analyse qualitative and quantitative data to present economic arguments.

At least one folio task could be a collaborative task. While collaboration is encouraged for the benefits it brings to the learning environment, students will only be assessed on their individual contribution. For example, students may work in groups to conduct the initial research of a topic which they use to prepare and submit an individual report for assessment.

The folio tasks should enable students to demonstrate their learning through the economic contexts.

Evidence may be presented as, but is not limited to:

• an essay, blog, or analytical report
• a multimodal presentation
• an interview or viva
• short and/or extended responses
• annotated graphs or diagrams.

Each folio task is allocated a word limit.

For a 10-credit subject, the evidence for the two tasks combined should comprise a maximum of 1800 words if written, or the equivalent in oral or multimodal form, where 6 minutes is equivalent to 1000 words.

For a 20-credit subject, the evidence for the four tasks combined should comprise a maximum of 3600 words if written, or the equivalent in oral or multimodal form, where 6 minutes is equivalent to 1000 words.

For this assessment type, students provide evidence of their learning in relation to the following assessment design criteria:

• understanding
• application
• analysis.

Assessment Type 2: Economic project

For a 10-credit subject, students undertake one individual economic project.

For a 20-credit subject, students undertake two individual economic projects.

Students conduct an analysis of an economic question or issue. They apply economic thinking to analyse economic information and construct reasoned arguments.

Students collect and analyse quantitative and qualitative data relating to an economic question or issue. They collect and analyse economic information such as statistics, graphs, journals, newspapers, official reports, case studies, film, cartoons, and articles.

Student evidence may be presented in written, oral, or multimodal form. In whichever form, the economic project should enable students to:

• analyse a range of data and other information using economic concepts, principles, and models
• apply principles, models, and terminology appropriately
• construct reasoned arguments.

Each economic project should be a maximum of 1000 words if written, or the equivalent in oral or multimodal form, where 6 minutes is equivalent to 1000 words.

For this assessment type, students provide evidence of their learning in relation to the following assessment design criteria:

• understanding
• application
• analysis.

Performance standards

The performance standards describe five levels of achievement, A to E.

Each level of achievement describes the knowledge, skills, and understanding that teachers refer to in deciding how well students have demonstrated their learning on the basis of the evidence provided.

During the teaching and learning program the teacher gives students feedback on their learning, with reference to the performance standards.

At the student’s completion of study of a subject, the teacher makes a decision about the quality of the student’s learning by:

• referring to the performance standards
• taking into account the weighting of each assessment type
• assigning a subject grade between A and E.

Performance standards

Stage 1 performance standards for Economics can be viewed below. You can also download in Word format [DOC 234KB].

To learn more about what performance standards are, how they are used, and other general information, see performance standards and grades. 

Subject changes

Editorial changes to Stage 1 Economics for 2021 include:

Learning requirements

• LR1 – reword to read, ‘understand economic concepts, principles, and models’.
• LR2 – reword to read, ‘apply economic concepts, principles, and models in a variety of contexts
• LR5 – analyse a range of data and other information using economic concepts, principles, and models.

Teaching and learning framework

• Section rewritten for clarity.
• Core topic: Thinking like an economist - reword to read, 'Students develop economic thinking by using economic inquiry skills, knowledge, and understanding of economic concepts, principles, and models in different contexts. Students apply economic thinking in the analysis of economic issues evident in a variety of scenarios'.

Economic inquiry skills

• Minor editorial changes and re-ordering of points.
• Last dot point – replace ‘constructing’ with ‘communicating’, to read, ‘communicating reasoned arguments.
• Economic scenarios reworded to read, 'Economic contexts'.
• Some rewording of this section for clarity.
• 'Elective scenario' reworded to read, 'school-developed contexts', and replaced elsewhere in the document.

Assessment design criteria

• U1 – reword to read, ‘Understanding of economic concepts, principles, and models
• Ap1 – reword to read, ‘Application of economic concepts, principles, and models in a variety of contexts.
• An1 – reword to read, ‘Analysis of a range of data and other information using economic concepts.

Assessment Type 2: Economic Project

• Some minor rewording and re-ordering for clarity.

Performance standards

• Rewording of specific features to align with the changes to learning requirements and assessment design criteria.