A key feature of the new Stage 6 economics syllabus is its “problems and issues” approach to the teaching and learning of economics. This approach will make economics more relevant to students undertaking the course. The syllabus identifies six key issues to be the focus within the study of economics in both the Preliminary and Higher School Certificate courses. The key issues on p. 13 of the syllabus are:

• economic growth and quality of life
• unemployment
• inflation
• external stability of an economy
• distribution of income
• sustainable management of the environment.

Within the Preliminary course, the focus is on practical problems and issues affecting individuals, firms and governments. The Higher School Certificate course relates its problems and issues to the national economy and the process of globalisation.

In the Preliminary course, students will not have a sophisticated understanding of the issues. They will know neither the details of how unemployment is defined nor how it is measured. However, all students completing Stage 5 would have some general understanding of unemployment as a concept. This allows teachers to include some investigation and analysis of issues around the concept of unemployment. Similarly the key issues of quality of life, distribution of income and sustainable management of the environment are all concepts familiar to students. This understanding should be developed considerably through teaching and learning activities incorporated in the course.

Issues centring on economic growth and the external stability of an economy will be further from the general knowledge of students entering economics. These concepts can be introduced in a more general way, without stressing the details of how they can be measured.

Inflation is an issue within the course with which students will have a varied understanding. The initial cohorts of students undertaking the course have basically lived in a low-inflation Australian society. They have little direct understanding of how inflation impacts upon the economy and society at large. Their parents and teachers will have a much greater understanding of inflation as a part of everyday life.

To develop a thorough understanding of the issues and to create a solid foundation for the HSC topic, Economic issues, teachers should investigate aspects of the key issues, wherever possible.

In the first Preliminary topic, Introduction to economics, the concept of opportunity cost is introduced. Teachers can use this as a means of developing understanding of some of the key issues for students. Unemployment, quality of life and sustainable management of the environment are all very relevant applications of opportunity cost. They all consolidate the first learn to statement, where “students examine economic issues and identify the opportunity costs involved in economic decisions made by individuals, businesses and governments at local, state and national levels.”

The distribution of income can be introduced within the context of the second learn to statement, where “students examine economic issues and examine the ways that the economic problem affects individuals at different income levels”. In the last section of the learn about statement for the first topic, students examine the similarities and differences between Australia and at least one other economy in relation to economic growth, employment and unemployment, quality of life, environmental quality and the role of government. This provides further familiarisation with the issues in a broader context.

Through the context of the second topic, students will further develop their understanding of the key issues. Class activities can add to an understanding of distribution of income and its impact on both individuals and society or the economy as a whole, while contemplating the impact of unemployment on income. In this topic the learn to statements include an investigation of sources of income; this adds considerably to students’ understanding of the distribution of income. As the role of the firm is examined and the issue of investment in technological change highlighted, students would consider the impact on employment levels, adding to their understanding of unemployment as an issue.

If teachers maintain the focus on issues, wherever possible, students will develop a more detailed
understanding of the whole issue and wider knowledge about the issue. This will provide a valuable background for the Economic issues topic of the HSC course.

John Gore
CEO, HSIE