Economics · Stage 6

Topic 3: Economic Issues

How an economy is measured, the problems it faces, and the market failures that justify intervention.

Dot points
11
Module
3 of 4
Course
Economics
01What this module asks of you

The 11 syllabus dot points in Topic 3: Economic Issues

These are the statements the Economics syllabus makes about Topic 3: Economic Issues. Dux records each one against the questions you answer, so you can see which of them you have actually been tested on and which have never been asked.

  1. 01

    The Nature of Economics

    Scarcity, opportunity cost and the economic problem, which underpin every later decision rather than being a definition to recite.

  2. 02

    Economic Issues

    Growth, unemployment, inflation, distribution and environmental sustainability as competing objectives rather than a list.

  3. 03

    Measuring Economic Performance

    GDP and its limitations as a welfare measure, and the difference between nominal and real, and level and rate.

  4. 04

    The Business Cycle

    Upswing, peak, downturn and trough, and the indicators that lead, coincide and lag.

  5. 05

    Market Mechanisms

    Demand, supply and equilibrium, and how a shift differs from a movement along a curve — the distinction most errors rest on.

  6. 06

    Market Structures

    Perfect competition through monopoly, and how market power changes price, output and efficiency.

  7. 07

    Market Failure

    Externalities, public goods and common resources, and the specific failure that justifies a specific intervention.

  8. 08

    Labour Markets

    Wage determination, labour market flexibility, and the link between wages and unemployment that policy debates turn on.

  9. 09

    Inflation: Causes and Consequences

    Demand-pull, cost-push and imported inflation, and the distributional effects that make inflation a political problem.

  10. 10

    Unemployment: Causes and Policies

    Cyclical, structural, frictional and hidden unemployment, and why the right policy depends on the type.

  11. 11

    Distribution of Income and Wealth

    The Gini coefficient, the sources of inequality, and the difference between income and wealth as measures.

02How it is examined

What a Topic 3: Economic Issues question asks you to do

HSC Economics - Trial Paper Shape is 100 marks in 180 minutes. Questions on Topic 3: Economic Issues are not one shape repeated: the command word decides what the marker is looking for, and the mark value decides how much of it. These are the ones Economics uses.

analyse4–6analyse4–6assess4–6assess4–6calculate4–6calculate1classify1distinguish1evaluate8–10explain4–6identify1interpret1predict1

Dux writes practice for this module in exactly these shapes, so the drill is the same task the paper sets — not a general knowledge quiz with the module name on it.

03Where this module sits

Topic 3: Economic Issues in the Economics course

Topic 3: Economic Issues is module 3 of 4 in Economics. Students routinely lose marks because a question spans two modules, so the neighbouring modules are worth reading next to this one.

Find the Topic 3: Economic Issues dot points you have never been asked

Dux diagnoses Economics dot point by dot point, then writes questions in the shape this course marks. Written answers come back marked against the bands.