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.