Economics 3

What will I learn?

Microeconomics: Principles and Applications

Course Summary:
This course introduces students to the core principles of microeconomics, providing a foundational understanding of how individuals, firms, and industries make decisions in the marketplace. Students will explore the concepts of supply and demand, elasticity, and consumer behavior. Emphasis is placed on understanding how markets reach equilibrium, the role of prices in allocating resources, and the behavior of consumers and producers. The course will also examine the importance of marginal analysis and the decision-making processes of firms and households in a market-driven economy.

Key Topics:

• Supply and Demand Analysis

• Elasticity and its Applications

• Consumer Choice Theory

• Production and Cost Theory

• Market Equilibrium and Efficiency

Market Structures and Firm Behavior

Course Summary:
In this course, students will deepen their understanding of how different types of markets function, with a particular focus on how firms interact in competitive and non-competitive environments. The course will explore the characteristics and behavior of firms under perfect competition, monopoly, oligopoly, and monopolistic competition. Students will analyze how market structures influence pricing, output, and efficiency, and explore the strategies firms use to maximize profits, including pricing strategies and product differentiation. The role of market power and government intervention in promoting competition will also be discussed.

Key Topics:

• Perfect Competition and Efficiency

• Monopoly and Price Setting

• Oligopoly and Strategic Behavior (Game Theory)

• Monopolistic Competition and Product Differentiation

• Market Power and Antitrust Policies

Market Failures and Government Intervention

Course Summary:
This course focuses on understanding situations where markets fail to allocate resources efficiently or equitably. Students will examine different types of market failure, such as public goods, externalities (positive and negative), and information asymmetry. The role of government intervention in correcting these failures will be explored, including the use of taxes, subsidies, regulations, and public policies. The course will also evaluate the effectiveness of these interventions in promoting economic efficiency and equity.

Key Topics:

• Public Goods and the Free Rider Problem

• Externalities and Environmental Economics

• Information Asymmetry and Market Imperfections

• Government Policies: Taxes, Subsidies, and Regulations

• Welfare Economics and Market Efficiency

Macroeconomics: The Big Picture

Course Summary:
In the final term, students will shift focus to macroeconomics, studying the broader economic factors that affect entire economies. This course covers key concepts such as GDP, unemployment, inflation, and economic growth. Students will explore how governments and central banks use monetary and fiscal policy to stabilize the economy. The course also investigates the global economy, including international trade, exchange rates, and global financial systems. Special attention is given to economic cycles, policy tools, and the challenges of achieving sustainable growth and stability.

Key Topics:

• Measurement of Economic Performance (GDP, Unemployment, Inflation)

• Aggregate Demand and Aggregate Supply

• Fiscal Policy and Government Spending

• Monetary Policy and Central Banking

• Economic Growth and Development

• International Trade and Exchange Rates

Will there be any FAO? (Further Assessment Opportunities)

FAO's will depend on the reason/s a student has not achieved the credits on the first attempt. Decisions will be made in consultation with the Learning Advisor, Whanau, and the Curriculum Leader.