Planning

Accreditation period Units 1-4: 2023-2027

Developing a program

Overview

The VCE Economics Study Design outlines the nature and sequence of learning and teaching necessary for students to demonstrate achievement of the outcomes for each unit 1 to 4. Each area of study describes the specific knowledge and skills required to demonstrate a specific outcome. Teachers are required to develop a program for their students that meets and addresses the requirements of the study design including: areas of study, outcome statements, key knowledge and key skills, and assessment tasks. The introductory statement at the start of each area of study outlines the context for the key knowledge and key skills.

VCE Economics provides opportunity for teachers and schools to develop a program that meets the interests and needs of students and builds on the knowledge, skills, capabilities and cross-curriculum priorities developed in Economics and Business in the Victorian Curriculum across Years 5–10.

Before teachers begin development of their teaching and learning program, they should consider the Scope of Study, Rationale and Aims on pages 5–6 of the VCE Economics Study Design, as each of these provides context and understanding about the unique contribution the study of Economics can make to the curriculum and to student learning.

Teachers should consider developing a weekly program outline for each unit. When planning the program, teachers should divide and allocate available time so that there is appropriate coverage of all required key knowledge and key skills for each outcome in each unit; document the assessment tasks for each outcome; and plan a scope and sequence of learning activities for each outcome. They should ensure that this program outline incorporates coverage of key knowledge and development of the key skills to be assessed at the end of each outcome.

For Units 1 and 2, teachers must select assessment tasks from the list provided. It is recommended that specific tasks selected provide a variety. The mix of tasks should reflect the fact that different types of tasks suit different knowledge and skills and different learning styles. Tasks do not have to be lengthy or complex in order be useful in making a decision about student demonstration of achievement of an outcome.

The VCAA specifies the assessment procedures for students undertaking scored assessment In Units 3 and 4. Designated assessment tasks are provided in the details for each unit in the VCE Economics Study Design. The student’s level of achievement in Units 3 and 4 is determined by School-assessed Coursework (SAC) as specified in the VCE Economics Study Design, and external examination assessment. The weighting of SACs and the external examination to the total score for the study is stipulated by the VCAA.

In Units 3 and 4, SAC tasks are selected from a prescribed list as set out in the VCE Economics Study Design. The weighting of each outcome in relation to the total score for school-assessed coursework is stipulated in the VCE Economics Study Design. Performance descriptors are written to assist teachers in their assessment of SACs.

Details relating to the examination specifications and sample questions are provided on VCAA’s website.

When developing a VCE Economics program, teachers are advised to ensure that all units of work are constructed on the basis of 50 hours of scheduled classroom instruction. Suggestions about possible time allocations are outlined under the notes for each unit below.

Teachers are reminded that there are no prerequisites for entry to Units 1, 2 and 3 but that Units 3 and 4 must be taken as a sequence.

Unit 1 consists of three areas of study: Area of Study 1 – Thinking like an economist; Area of Study 2 – Decision-making in markets and Area of Study 3 – Behavioural economics.

All areas of study are required learning but some topic options are available within the following
Area of Study 2 where a specific market is selected for study (either from the list provided or a student may select any other market) through which the key knowledge and skills can be taught.
Area of Study 3 where one or more behavioural economics experiments are conducted in order to illustrate how behavioural economics complements traditional understandings of economic decision-making and analyses the effects of behavioural economic insights on consumers and other economic agents.

Given that there are greater key knowledge and key skill requirements in Areas of Study 1 and 2 than in Area of Study 3, the following time allocations are suggested:

Area of study	Suggested time allocation from the 50 available hours
1: Thinking like an economist	20 hours
2: Decision-making in markets	20 hours
3: Behavioural economics	10 hours

Unit 2 consists of two Areas of Study: Area of Study 1 – Economic activity and Area of Study 2 – Applied economic analysis of local, national and international economics issues.

In Area of Study 2, students undertake applied economic analysis by investigating two economic issues. Applied economics involves students applying insights of economic theory and key economic skills to analyse economic issues. Students undertake applied economic analysis via investigation of two economic issues from a local, national and international perspective through an economic lens. Two of the four following current economic issues must be selected: the changing labour market; the economics of international trade; the distribution of income and wealth; and economics and environmental sustainability.

The VCE Economics Study Design sets out the key knowledge and key skill requirements for the applied economic analysis of two economics issues with overarching themes for each analysis / investigation involving a similar structure, this is:

the definition of the selected economic issue, including relevant measures and statistical indicators
the economic factors influencing the extent of the selected economics issue
the reasons the issue is of importance to the economy at a local, national and international level
the different perspectives of households, business, government and other relevant economic agents regarding the selected economics issue
the economic responses undertaken by relevant economic agents at a local, national and international level to address the economic issue, including government policies.

The following elaborations are provided to explicitly scaffold approaches that may inform the steps involved in the analysis/investigation for each issue. Please note that students choose two issues from the following:

1. The changing labour market

The definition of the selected economics issue, including relevant measures and statistical indicators:

employment, unemployment, paid and unpaid work
measures of the labour market
causes and types of unemployment
overview of trends in the size, distribution and composition of Australia’s population and its implications for the labour market.

The reasons why the issue is of importance to the economy at a local, national and international level:

economic consequences of employment and unemployment in a local, national and international context
economic consequences of changing employment patterns and labour market casualisation
the economic consequences of demographic change including the possible impact on a nation’s living standards.

The economic factors influencing the extent of the selected economics issue:

factors that may affect the demand for, and supply of, labour
the changing labour market including casualisation, ageing population, the gig economy, pay inequality and migration
economic opportunities and outcomes for First Nations Australians
economic causes of the changing labour market including technological change, international migration, demographic change, remote work and discrimination.

The different perspectives of households, business, government and other relevant economic agents regarding the selected economics issue:

the experience and perspectives of households, businesses and other relevant economics agents in relation to changing labour market conditions and population.

The economic responses undertaken by relevant economic agents at a local, national and international level, to address the economics issue, including government policies:

economic responses including labour market policies, population policies in Australia and internationally, changing levels of unionisation, the role of minimum wages, and policies relating to the provision of a universal basic income.

2. Economics of international trade and globalisation

The definition of the selected economics issue, including relevant measures and statistical indicators:

definition of international trade and financial flows
key features of Australia’s trade and trading relationships
the measurement of Australia’s trade and financial flows, including recent trends
the measurement of trade and financial flows between Australia and one of its major trading partners, including recent trends.

The reasons why the issue is of importance to the economy at a local, national and international level:

the benefits of trade for regional, national and international living standards
the impact of trade tensions, protection and trade liberalisation on Australia’s economy and specific industries.

The economic factors influencing the extent of the selected economics issue:

the role of technological change and division of labour in international trade
exchange rates and their role in, and impact on trade
other aggregate demand and aggregate supply factors influencing Australia’s trade and international trade patterns
trade protection, trade liberalisation and trade agreements and their effect on international trade.

The different perspectives of households, business, government and other relevant economic agents regarding the selected economics issue:

the experience and perspective of households, government, businesses and other economic agents relating to international trade, trade liberalisation and protectionism and international trade tensions
arguments in favour of and against trade liberalisation and protectionism from an individual, regional, national and international perspective.

The economic responses undertaken by relevant economic agents at a local, national and international level, to address the economics issue, including government policies:

Australia’s trading agreements and alliances and regional partnerships and their effects on Australia’s economy
the role of governments, international institutions (World Trade Organization) and global movements in recent developments in international trade, such as pro- and anti- trade movements.

3. Economics and environmental sustainability (students may choose to focus on one environmental issue)

The definition of the selected economics issue, including relevant measures and statistical indicators:

the meaning and significance of key environmental economics concepts, including long-term economic prosperity, environmental sustainability, renewable and non-renewable natural resources, carrying capacity and the tragedy of the commons
current environmental challenges that have been created from past and current economic decisions
current environmental performance of Australia on key environmental measures such as biodiversity, deforestation, air and water pollution, resource depletion, greenhouse gas emissions.

The reasons why the issue is of importance to the economy at a local, national and international level:

the impact of environmental damage on Australia’s economy and living standards
the impact of environmental damage on the international economy and living standards
the meaning of intergenerational equity
the potential trade-off between current economic growth and the economic prosperity and living standards of future generations.

The economic factors influencing the extent of the selected economics issue:

the concept of market failure
how economic growth can negatively impact the environment including negative externalities and the depletion of natural resources
the environmental consequences of market failure including climate change, depletion of natural resources, species extinction and deterioration of common access resources
the potential compatibility between economic growth and environmental sustainability.

The different perspectives of households, business, government and other relevant economic agents regarding the selected economics issue:

a consideration of the benefits accruing to economic agents from economic growth
a consideration of the perspectives of economic agents negatively impacted by the environmental consequences of economic growth
the implications of environmental damage for global equity and living standards.

The economic responses undertaken by relevant economic agents at a local, national and international level, to address the economics issue, including government policies:

key economic responses and policies used to address environmental issues including market-based approaches, regulations, quotas, taxes, subsidies and a circular economy
evidence of the impact of economic responses and policies used to address environmental issues
an analysis of the costs and benefits of the policy responses, including how addressing environmental issues can improve living standards locally, nationally and internationally
the role of international organisations in responding to global environmental issues.

4. Distribution of income and wealth

The definition of the selected economics issue, including relevant measures and statistical indicators:

definitions of income: earned and unearned income, transfer income, gross income, disposable income, nominal and real income, social wage income and final income
the definition of wealth and the measurement of household net worth
the relationship between income and wealth
measures of the distribution of income and wealth, including the Lorenz curve and Gini coefficient
the difference between absolute and relative poverty
measures of poverty including the Henderson Poverty Lines
trends in rates of poverty and its incidence across Australia
trends in income and wealth distribution in Australia, including regional and demographic differences
trends in international income and wealth distribution
trends in the international incidence of poverty.

The reasons why the issue is of importance to the economy at a local, national and international level:

the economic and social effects of relative poverty on material and non-material living standards in Australia and internationally
the economic and social effects of income and wealth inequality on material and non-material living standards in Australia and internationally.

The economic factors influencing the extent of the selected economics issue:

causes of income inequality and poverty in Australia and internationally, such as unequal ownership of factors of production, relative levels of labour demand and labour supply, unemployment, lack of human capital, sovereign indebtedness, historical causes, First Nations opportunities and outcomes, gender inequality and discrimination.

The different perspectives of households, business, government and other relevant economic agents regarding the selected economics issue:

economic arguments in favour of and against higher or lower levels of inequality in income and wealth distribution
a consideration of different perspectives on what constitutes an appropriate level of income and wealth inequality.

The economic responses undertaken by relevant economic agents at a local, national and international level, to address the economics issue, including government policies:

the impact of potential policy interventions on the distribution of income and wealth, including progressive, proportional and regressive taxes, unemployment and other government transfer payments, subsidisation of merit goods and universal basic income
the definition of international aid
evidence of the impact of international aid on international income distribution and poverty
the role and effectiveness of international organisations in taking action to reduce international poverty, including the Sustainable Development Goals.

The following time allocations are suggested:

Area of study	Suggested time allocation from the 50 available hours
1: Economic activity	18 hours
2: Applied economic analysis of local, national and international economics issues – two issues to be selected from the four available issues	2 x 16 hours = 32 hours

Unit 3 consists of three areas of study: Area of study 1 – An introduction to microeconomics: the market system, resource allocation and government intervention; Area of Study 2 – Domestic macroeconomic goals and Area of Study 3 – Australia and the international economy.

School-assessed Coursework for Unit 3 will contribute 25 per cent to the study score.

It is required that a minimum of two different assessment task types will be used to assess School-assessed Coursework in Unit 3. These are listed on page 23 of the VCE Economics Study Design.

The following time allocations are suggested based on the mark allocation for each area of study:

Area of study	Marks allocated	Suggested time allocation from the 50 available hours
1. An introduction to microeconomics: the market system, resource allocation and government intervention	35	17.5 hours
2. Domestic macroeconomic goals	40	20 hours
3. Australia and the international economy	25	12.5 hours

Unit 4 consists of two areas of study: Area of Study 1 – Aggregate demand policies and domestic economic stability and Area of Study 2 – Aggregate supply policies.
School-assessed Coursework for Unit 4 will contribute 25 per cent to the study score.

It is required that a minimum of two different assessment task types will be used to assess School-assessed Coursework in Unit 4. These are listed on page 28 of the VCE Economics Study Design.

The following time allocations are suggested based on the mark allocation for each area of study:

Area of study	Marks allocated	Suggested time allocation from the 50 available hours
1. Aggregate demand policies and domestic economic stability	60	30 hours
2. Aggregate supply policies	40	20 hours

Aboriginal and Torres Strait Islander Perspectives in the VCE
On-demand video recordings, presented with the Victorian Aboriginal Education Association Inc. (VAEAI) and the Department of Education (DE) Koorie Outcomes Division, for VCE teachers and leaders as part of the Aboriginal and Torres Strait Islander Perspectives in the VCE webinar program held in 2023.

Some of the print resources contained in this list may be out of print. They have been included because they may still be available from libraries, bookshops and private collections.

At the time of publication the URLs (website addresses) cited were checked for accuracy and appropriateness of content. However, due to the transient nature of material placed on the web, their continuing accuracy cannot be verified. Teachers are strongly advised to prepare their own indexes of sites that are suitable and applicable to the courses they teach, and to check these addresses prior to allowing student access.

Books

General

Ariely, D 2008, Predictably Irrational: The hidden forces that shape our decisions, HarperCollins

Das, S 2015, A Banquet of Consequences; have we consumed our own future?, Penguin Books

Frank, RH 2008, The Economic Naturalist, Virgin Books, Random House, London

Gittins, R 2012, Gittin’s Gospel: The Economics of Just About Everything, Allen & Unwin

Gittins, R 2010, The Happy Economist, Allen & Unwin

Glover, D 2015, An Economy is not a Society, Redback Publishing

Hamilton, C & Denniss, R 2005, Affluenza, Allen & Unwin, Sydney

Harcourt, T 2008, The Airport Economist, Allen & Unwin, Sydney

Harcourt, T 2014, Trading Places, NewSouth Books

Harford, T 2006, The Undercover Economist, Oxford University Press, Oxford

Irvine, J 2012, Zombies, Bananas and why there are no Economists in Heaven, Allen & Unwin

Leigh, A 2014, The Economics of Just About Everything, Allen & Unwin

Thaler, R and Sunstein, C 2008 Nudge: Improving decisions about Health, Wealth and Happiness, Penguin Books

Thaler, R 2015 Misbehaving: The making of Behavioural Economics, Penguin Books

Units 1 and 2

Harford, T 2005, The Undercover Economist, Little, Brown and Company

Knox, M 2015, Supermarket Monsters, Redback Publishing

Levitt, SD & Dubner, S 2006, Freakonomics, Harper Collins

Levitt, SD & Dubner, S 2011, SuperFreakonomics, Penguin Press

Levitt, SD & Dubner, S 2015, Think like a Freak: The Authors of Freakonomics Offer to Retrain Your Brain; William Morrow & Co

Marcal, K 2015, Who Cooked Adam Smith’s dinner? Portobello Books

Morris, R 2016, Economics Down Under, Book 1, 8E, Jacaranda, Melbourne

Salla, R & MacGregor, D 2015, Economics from the Ground up. 4E, Commerce Presentations and Publications (CPAP), Melbourne

Thaler, R & Sunstein, C 2008, Nudge, Yale University Press

Units 3 and 4

MacGregor, D & Salla, R 2016, Economic Fundamentals in Australia, 4E, Commerce Presentations and Publications (CPAP), Melbourne

Morris, R 2016, Economics Down Under, Book 2, 8E, Jacaranda, Melbourne

Prince, R & Prince, M 2016, Australian Economic Statistics, e-stats Publications, Melbourne

Salla, R & Robertson, T 2016, CPAP Study Guide to VCE Economics – Books 1 & 2, 2E, Commerce Presentations and Publications (CPAP), Melbourne

Films and documentaries

An Inconvenient Truth (feature documentary, 2006, Paramount Pictures)

Charlie and the Chocolate Factory (feature film, 2005)

(Dis)Honesty: The truth about Lies (feature documentary)

Local Hero (feature film, 1989, Celandine Films)

Margin Call (feature film, 2011)

Rogue Trader (feature film, 983, Granada Film Productions)

Spotswood (feature film, 1992, Australian Film Commission)

The Bank (feature film, 2001, Footprint Films)

The Big Short (feature film, 2015)

The Corporation (feature documentary, 2003)

The Economics of Happiness (feature documentary, 2011)

The Wog Boy (feature film, 2000, Twentieth Century Fox)

Trading Places (feature film, 1983)

Wall Street (feature film, 1987, Twentieth Century Fox)

Wall Street: Money Never Sleeps (feature film, 2010)

You’ve Got Mail (feature film, 1998)

Internet

Students’ increased access to news and current affairs 24/7 should help foster a growing awareness and understanding of local, domestic and global economic issues. Teachers are encouraged to use social media, including Facebook, YouTube, WordPress, Instagram and Twitter, and a range of ICT to engage with students.

Blogs

Market Economics, Steven Koukoulas
‘Barefoot Investor’, Herald Sun, Scott Pape
Freakonomics, Steven D Levitt and Stephen J Dubner
Jessica Irvine, newspaper articles on SMH site
Ross Gittins, newspaper articles on his website
The Conversation

Podcasts

The Economists
The BETA Team

Websites

Deloitte.
Grattan Institute
The Kouk
Reserve Bank of Australia (Education)
Salla, R, VCE Economics
Ted Talks (Economics)
The Khan Academy
Trading Economics
Women in Economics
Women in Economics Network

App

Salla, R, Economics Tutor, iTunes
Economics for Students, Apple Store
Study pack Economics, Apple Store

Newspapers and Magazines

The Age
The Australian
Australian Financial Review

Journals and Periodicals

ABS Australian Economic Indicators
Australian Economic Review
Australian Government Budget Archive
AGPS Budget Speech
AGPS Treasury Roundup
Business Council of Australia Economic Updates
CEDA
Compak, VCTA
Plain English Economics
The Conversation
The Economist

Organisations

The VCE Economics study provides students with the opportunity to engage in a range of learning activities. In addition to demonstrating their understanding and mastery of the content and skills specific to the study, students may also develop employability skills through their learning activities.

The nationally agreed employability skills* are: Communication; Planning and organising; Teamwork; Problem solving; Self-management; Initiative and enterprise; Technology; and Learning.

The table links those facets that may be understood and applied in a school or non-employment-related setting to the types of assessment commonly undertaken in the VCE study.
Assessment task	Employability skills selected facets
Media Blog	Communication (reading independently; writing to the needs of the audience; forming and expressing opinions) Planning and organising (collecting articles, organising information and meeting deadlines) Technology (using information technology to organise information) Self-management (evaluating and monitoring own performance; taking responsibility) Learning (managing own learning)
Data analysis	Communication (reading independently; writing to the needs of the audience) Planning and organising (collecting, analysing and organising information) Problem solving (using mathematics to solve problems; using numeracy skills; interpreting information; analysing graphical and numerical information) Technology (using information technology to organise data)
Folio of applied economic exercises	Communication (reading independently; writing to the needs of the audience) Planning and organising (collecting, analysing and organising information) Problem solving (using mathematics to solve problems; using numeracy skills; interpreting information; analysing graphical and numerical information, applying a range of strategies to problem solving) Self-management (evaluating and monitoring own performance; Evaluating and monitoring own performance; taking responsibility) Learning (managing own learning)
Essay	Communication (writing to the needs of the audience; persuading effectively) Planning and organising (planning the use of resources including time management; collecting, analysing and organising information) Self-management (evaluating and monitoring own performance; Evaluating and monitoring own performance; taking responsibility)
Report	Communication (writing to the needs of the audience; persuading effectively) Planning and organising (planning the use of resources including time management; collecting, analysing and organising information) Self-management (evaluating and monitoring own performance; Evaluating and monitoring own performance; taking responsibility)
Media commentaries and analysis	Communication (reading independently; listening and understanding; writing to the needs of the audience) Planning and organising (collecting, analysing and organising information) Self-management (evaluating and monitoring own performance; Evaluating and monitoring own performance; taking responsibility) Learning (managing own learning) Problem solving (testing assumptions taking the context of data and circumstances into account)
Case study	Communication (writing to the needs of the audience; persuading effectively) Planning and organising (planning the use of resources including time management; collecting, analysing and organising information) Team work (working as an individual and as a member of a team; knowing how to work collaboratively) Technology (having a range of basic information technology skills; using information technology to organise data; being willing to learn new information technology skills) Self-management (evaluating and monitoring own performance; Evaluating and monitoring own performance; taking responsibility) Learning (managing own learning)
Structured questions	Communication (writing to the needs of the audience; persuading effectively Planning and organising (collecting, analysing and organising information) Learning (managing own learning)
Problem-solving tasks	Planning and organising (collecting, analysing and organising information) Problem solving (using mathematics to solve problems; using numeracy skills; interpreting information; analysing graphical and numerical information, applying a range of strategies to problem solving) Self-management (evaluating and monitoring own performance; taking responsibility) Learning (managing own learning)
Oral presentation	Communication (sharing information; writing to the needs of the audience; using numeracy and literacy skills) Learning (being open to new ideas and techniques) Technology (having a range of basic information technology skills; using information technology to organise data; being willing to learn new information technology skills) Self-management (evaluating and monitoring own performance; taking responsibility)
Visual presentation	Communication (sharing information; writing to the needs of the audience; using numeracy and literacy skills) Learning (being open to new ideas and techniques) Technology (having a range of basic information technology skills; using information technology to organise data; being willing to learn new information technology skills) Self-management (evaluating and monitoring own performance; taking responsibility)
Debate	Communication (sharing information; speaking clearly and directly; persuading effectively) Planning and organising (planning the use of resources including time management; collecting, analysing and organising information) Team work (working as an individual and as a member of a team; knowing how to define a role as part of the team)

*The employability skills are derived from the Employability Skills Framework (Employability Skills for the Future, 2002), developed by the Australian Chamber of Commerce and Industry and the Business Council of Australia, and published by the (former) Commonwealth Department of Education, Science and Training.

2023 Implementation videos

VCE Economics (2023-2027) implementation videos
Online video presentations which provide teachers with information about the new VCE Economics Study Design for implementation in 2023.

Planning

Developing a program

Overview

Unit 1: Economic decision-making

Unit 2: Economic issues and living standards

1. The changing labour market

2. Economics of international trade and globalisation

3. Economics and environmental sustainability (students may choose to focus on one environmental issue)

4. Distribution of income and wealth

Unit 3: Australia’s living standards

Unit 4: Managing the economy

Aboriginal and Torres Strait Islander Perspectives in the VCE

Resources