Economics is a social science involving the study of people and their activities relating to production, consumption and exchange. The study covers the behaviour of individuals, their work decisions of what to produce, where to locate and how to market, and the activities of Government. A thorough study is also made of major economic issues, i.e. unemployment, inflation, budget deficits, trade imbalances and economic growth.
So where does Economics lead? An understanding of economic issues and effects is a basis for the study of both commerce and society. From the planning of marketing decisions through to developing the Third World, Economics impacts upon us all. Because of its Arts and Commerce orientation it can be studied as a main or as a supporting subject within either an Arts or a Commerce qualification. Economics also forms a core component of many other qualifications, including Agriculture/Horticulture, through to Parks, Recreation and Tourism Management.
Economics plays an important part in all decision-making as nothing exists in a vacuum. Therefore, the real importance of Economics is at the very basis of planning and implementing major social or business decisions. Without an appreciation of the prevailing economic climate, both internally and externally, any project can go seriously awry. An understanding of Economics can play a large part in the decision-making process, whether it is to appoint additional staff in an expanding plumbing business, or to purchase a salmon farm in Chile.
At Year 11, 12 and 13 two pathways will be offered, NCEA and CIE.
| NCEA | CIE |
| Year 11 | Level 1 | IGCSE |
| Year 12 | Level 2 | AS |
| Year 13 | Level 3 | A2 or AS |
Economics - Year Eleven
NCEA - Level 1 The emphasis is on production and consumers and how two sectors of the economy interact through the market. Students learn the basic laws of economics, supply and demand. This course is a useful beginning to any student contemplating doing a commerce degree at a tertiary institution.
The students will study 7 achievement standards:
AS1.1 Describe concepts related to consumer choice and demand
AS1.2 Describe producers, productions and resources and their use
AS1.3 Describe the concept of supply
AS1.4 Describe the market
AS1.5 Describe the relationships between sectors of the economy
AS1.6 Understand and use the consumer decision-making model
AS1.7 Carry out an economic investigation
International General Certificate of Secondary Education (CIE) The IGCSE course is an excellent course to begin the study of Economics as it gives a broad introduction to all aspects of the subject and leads to
Topic 1. Basic economic problem: choice and the allocation of resources
Topic 2. The allocation of resources: how the market works; market failure
Topic 3. The individual as producer, consumer and borrower
Topic 4. The private firm as producer and employer
Topic 5. Role of government in an economy
Topic 6. Economic indicators
Topic 7. Developed and developing economies: trends in production, population and living standards
Topic 8. International aspects
Economics - Year Twelve
NCEA Level 2 Level 2 NCEA Economics can be undertaken without any previous study in Economics. The main emphasis is on important economic issues - inflation, unemployment, growth, trade and equity.
A mix of Unit Standards and Achievement Standards will be sat for Level 2 economics and may include the following:
Achievement standards
- Explore issues using economic concepts and statistical data
(External) - Describe issues using economic model
(External) - Demonstrate an awareness of government policies relevant to economic issues
(External)
Unit standards
- Analyse and describe the labour market in economics
(Internal) - Demonstrate and explain the basis for trade, and the impact of a trade policy
(Internal) - Describe and measure inflation, its causes and effects, and the impact of a policy to reduce inflation
(Internal) - Use measures of economic growth, explain changes in growth and the impact of growth policies
(Internal)
Advanced Subsidiary Level - Core (CIE) (This can also be taken at Year 13)
As Economics can be undertaken without any previous study of Economics. The main emphasis is an introduction to Economics with a range of topics from micro and macroeconomic theory at core level. Assessment is carried out by two external exams (Papers 1 and 2). There are seven major topics at this level and they are as follows:
- Basic Economic Ideas
- The Price System and the Theory of the firm
- Government Intervention in the Price System
- International Trade
- Measurement in the Macroeconomy
- Macroeconomic Problems
- Macroeconomic Policies
Economics - Year Thirteen
NCEA Level 3 Students may take this course without having done NCEA Level 2 Economics. At Year 13 level both micro and macroeconomic theory relating to the New Zealand economy are studied. There is also an internally assessed Unit Standards. Economics is a core subject requirement within the commerce qualifications offered at the Universities of Auckland, Waikato, Massey and Lincoln.
Achievement Standards
- Understand marginal analysis and the behaviour of firms
(External) - Understand the market and allocative efficiency
(External) - Describe and illustrate resource allocation via the public sector to compensate market failure
(External) - Describe and illustrate aggregate economic activity
(External)
Unit Standards
- Investigate and compare the behaviour of firms under different market structures
(Internal) - Explain and apply the concepts of marginal utility and elasticity
(Internal) - Examine the allocation of resources via the market and the state
(Internal)
Advanced Level (A2) - Extension (CIE) A level extension builds on the work done at AS level and can not be studied without previous study at As level. It is a demanding course but brings about a very good knowledge for further university study. It follows the same topics as the Advanced Subsidiary Level but in greater depth. Assessment is carried out by two external exams (Papers 3 and 4).
There are three pathways available to candidates:
- Those candidates who wish to take the whole of the Advanced Level qualification at the end of a course of study take all four papers together.
- Satisfactory performance on the two Core papers (Papers 1 and 2) makes a candidate eligible for an Advanced Subsidiary Level qualification.
- Candidates who wish to follow a staged assessment route to the A Level qualification (A2) take the Advanced Subsidiary Level qualification first. They then need take only the two remaining papers (Papers 3 and 4) in order to complete the A Level.
Advanced Subsidiary Level (AS) - Core (CIE) - See Economics Year 12 for details of course
