ATAR Notes HSC Year 12 Economics Complete Course Notes (2022)

I The Global Economy
	International economic integration
		The global economy and Gross World Product
		Globalisation
			Trade in goods and services
			Financial flows
			Investment and transnational corporations
			Technology, transport, and communication
			International division of labour, migration
			International and regional business cycle
	Trade, financial flows, and foreign investment
		The basis of free trade
		Role of international organisations
			World Trade Organisation (WTO)
			International Monetary Fund (IMF)
			World Bank
			United Nations (UN)
			Organisation of Economic and Cooperation of Development (OECD)
		Influence of government economic forums
			G20
			G7
		Trading blocs, monetary unions, and free trade agreements
			Evaluating multilateral and bilateral trade agreements
			European Union (EU)
			Asia Pacific Economic Cooperation (APEC)
			North American Free Trade Agreement (NAFTA)
			Association of South-East Asian Nations (ASEAN)
			Bilateral trade agreements
	Protection
		Reasons for protection
		Methods of protection
			Tariffs
			Quotas
			Subsidies
			Local content rules
			Export incentives
		Effects of protectionist policies
	Globalisation and economic development
		Differences between economic growth and development
		Distribution of wealth and income
		Income and quality of life indicators
		Reasons for differences between nations
			Global factors
			Domestic factors
		Effects of globalisation
		Trade, investment, and transnational corporations
		Environmental sustainability
		International business cycle
		Case study: China
			China\'s economic reform policy
			Size of the Chinese Economy
			China\'s Economic Development
			China\'s International Trade
			China and the Environment
II Australia\'s Place in the Global Economy
	Australia\'s trade and financial flows
		Value, composition, and direction of Australia\'s trade and financial flows
			Trends in Australia\'s trade pattern
			Trends in financial flows – debt and equity
		Australia\'s Balance of Payments
			Structure
			Links between key balance of payments categories
			Trends in the size and composition of Australia\'s Balance of Payments
			Terms of trade
			International borrowing
			Foreign investment
	Exchange rates
		Measurement of relative exchange rates
		Factors affecting the demand for and supply of AUD
		Changes in exchange rates – appreciation/depreciation
		Determination of exchange rates including fixed, flexible, and managed
		Influence of the Reserve Bank of Australia on exchange rates
		Effects of fluctuations in exchange rates on the economy
	Free trade and protection
		Australia\'s policies regarding free trade and protection
		Australia\'s multilateral and bilateral free trade agreements
			Bilateral Agreements
			Multilateral Agreements
		Implications of Australia\'s policies
		Implications of other countries and trading blocs
III Economic Issues in the Australian Economy
	Economic growth
		Aggregate demand and its components
		Injections and withdrawals
		The simple multiplier
		Measurement of growth through changes in real GDP
		Sources of economic growth in Australia
		Effects of Economic Growth in Australia
		Increase in aggregate supply – improvements in efficiency and technology
		Trends in the business cycle
	Unemployment
		Measurement of unemployment
		Trends in unemployment
		Types of unemployment
		Causes of unemployment
		Non-accelerating inflation rate of unemployment (NAIRU)
		Main groups affected by unemployment
		Effects of unemployment
	Inflation
		Measurement of inflation
		Trends in inflation
		Causes of inflation
			Demand-pull inflation
			Cost-push inflation
			Imported inflation and inflationary expectations
		Positive and negative effects of inflation
	External stability
		Measurement and causes of external stability
			Current Account Deficit (CAD) as a percentage of GDP
			Net foreign debt as a percentage of GDP
			Net foreign liabilities as a percentage of GDP
			Terms of trade
			Exchange rate
			International competitiveness
		Trends and effects of external instability
	Distribution of income and wealth
		Measurement of distribution of income and wealth
		Sources of income as a percentage of household income
		Taxation, transfer payments, and other assistance
		Sources of wealth
		Dimensions and trends
		Benefits and costs of inequality
	Environmental sustainability
		Ecologically sustainable development
		Private and social costs and benefits
		Public and private goods
		Environmental issues
			Preservation of the natural environment
			Pollution
			Climate change
			Depletion of renewable and non-renewable resources
IV Economic policies and management
	Economic objectives
		Objective areas
			Economic growth and quality of life
			Full employment
			Price stability
			External stability
			Environmental sustainability
			Distribution of income
		Potential conflict among objectives
			Price stability vs. full employment
			Economic growth vs. stability, sustainability, employment, and income distribution
	Macroeconomic policies
		Fiscal policy
			Federal Government Budgets and budget outcomes
			Effects of budgeting changes
			Methods of financing deficits
			Use of a surplus
		Monetary policy
			Purpose of monetary policy
			Implementation of monetary policy by the RBA
			Impact of changes in interest rates on economic activity
			Impact of changes in interest rates on the exchange rate
	Microeconomic policies
		Rationale for microeconomic policies
			Shifts in AS and efficiency
		Effects of microeconomic policies
			Product and factor markets
		Regulation and deregulation
			Competition policy
		Labour market policies
			Role of national and state systems
			Dispute resolution
			Arguments for and against the use of centralised and decentralised wages
			Education, training, and employment programs
		National and global context for environmental management
			Regulations
			Market-based policies
			Targets set by international agreements
		Limitations on economic policies
			Time lags
			Global influences
			Political constraints
	Policy responses and their effects in dealing with economic objectives
		Economic growth and quality of life
		Full employment
		Price stability
		External stability
		Distribution of income
		Environmental sustainability
V General Statistics
VI Exam Skills and Tips