Economics

Introduction

Economics at Auckland Grammar School is offered through the dual pathway of NCEA and Cambridge. Students enter a course of study based on their results from Forms 3 and 4. In general, Cambridge courses typically require a greater breadth and depth of knowledge and have a greater focus on written expression (e.g. essays) than the corresponding NCEA Level.

In Form 4, students have the option to choose an introduction to Business Studies, Economics and Accounting (4BEA) that covers a wide variety of topics in each subject. In Form 5, students can study Economics at Pre-Q level or at NZQA Level 1.

At the senior levels, students in Level 2 cover four main macro-economic issues; unemployment, inflation, international trade, and economic growth. AS Economics covers a wide range of topics from micro-economic market theory, market failure and measurement in the macro-economy.

Note: AS Economics assumes no prior knowledge (that is, Form 5 Economics is not a prerequisite).

In Form 7, students can choose to take the final level of both Cambridge and NCEA; the latter covers market theory, market failure and aggregate (macro) economic activity.

The A2 course offers two papers covering consumer choice theory, theory of the firm, labour markets, government intervention, macro-economics, development economics and globalisation.

Level 4 Scholarship is largely based on the Level 3 Achievement Standards and all content for Level 4 is more than covered by the A2 programme.

Form 4 (Business Studies / Economics / Accounting)

This course is an introduction to some of the basic concepts in Business, Economics and Accounting. It is not a pre-requisite for study at Form 5 but will help students interested in Commerce make a more informed decision about subjects to study in Form 5.

Course description/aims: Topics covered in Economics include the basic economic problem, introductory micro economic analysis including market theory (demand and supply), consumer economics including financial literacy topics such as insurance, budgeting and consumer rights and obligations in the marketplace. Students also complete a unit on Business Studies, covering some of the main issues such as marketing, business organisation, business success and failure. There is also a unit on Business Accounting.

Economics/Consumer Financial Literacy

Basic economic problem: scarcity and exercise of choice
What, how and for whom
Economic systems

Market Equilibrium – Demand, Supply, Equilibrium

Financial Literacy Part 1

Income
Credit
Saving
Personal budgeting
Financial Records and ID Theft

Business Studies

Why business activity is needed.
How business activity is organised and financed
How to start a business
Business objectives

Accounting for Sole Traders

Financial information
Accounting equation
Debits and Credits
Transactions and Trial Balance
Income Statement
Assets and Liabilities
Trading Statement
Statement of Financial Position
Accounting Cycle
Accounting Analysis

Financial Literacy Part 2 – Consumer Laws and Insurance

Business Marketing

Market Segments
Market Research
Marketing Mix – the 4 P’s

Methods of Assessment:

1 x 1-hour examination – end of Term 1
1 x 2-hour examination – end of Term 2
1 x 2-hour examination – end of Term 4

Special equipment/costs: A $25 Auckland Grammar School workbook.

Continuation of course: This course will provide good background and preparation for Accounting, Business Studies, and Economics.

Commerce – Form 5 (NCEA Level 1)

Prerequisites: None. This course is provided for students in 4P and 4R who will study a full NCEA course at Form 5.

Course description/aims: This course is designed to introduce students to some of the concepts and theories covered in the Commerce subjects of Economics, Business Studies, and Accounting.

Commerce is the use and exploration of accounting, economic, and business concepts and models to make sense of society and solve problems. In this subject, students will build the knowledge, skills, and values they need to navigate, and participate in, the economic world. They will learn how participants in the economic world make decisions, and they will analyse how these decisions impact on sustainability.

Students will learn that decision-making is necessitated by scarcity and that decisions are informed by a variety of cultural perspectives and lenses. Learning and assessment will examine Māori, Pacific, and different approaches to commerce, and business models from whānau and organisation contexts.

Successful completion of this course provides an appropriate base for study of Accounting, Business Studies, or Economics at NCEA Level 2 in Form 6.

Course outline: The proposed course outline is designed to cover some of the new NCEA Level 1 Achievement Standards. Standards offered will assess some/all of the following:

1.1 – Students are able to demonstrate understanding of an organisation’s financial decision-making [5 Credits, Internal]
1.2 – Students are able to demonstrate understanding of price determination for an organisation [5 Credits, Internal]
1.3 – Students are able to demonstrate understanding of how interdependent financial relationships are affected by an event [5 Credits, External]

Methods of Assessment: Students will complete NCEA Level 1 Achievement Standards. Students will also be assessed by in-class tests and the School examinations, which take place in Terms 1, 2 and 4.

Continuation of subject: Successful completion of this course provides some base for study of Accounting, Business Studies, or Economics at NCEA Level 2 in Form 6.

Form 5 (Pre-Q)

Course description/aims: The course is a wide-ranging economics programme that introduces students to a variety of theory, topics, and issues domestically and internationally. The course is designed with the NZ economy as a base, together with international comparisons. Relevant Māori business concepts and perspectives on resource use are included and considered within the context of NZ as a modern, mixed-market economy. The aims of the Pre-Q course are to develop:

Knowledge and understanding of economic theory
An ability to interpret data in a variety of forms
An understanding of the NZ economy in a global context
An ability to apply economic skills and analysis in particular situations
An ability to distinguish between facts and value judgements in economic issues

Course outline:

Introductory Concepts
How Markets Work and Why Markets Fail
Money, Exchange, and Labour
The Theory of the Firm
The Government and Central Authorities
Macroeconomic Indicators
Global Inequality
International Economics

Methods of assessment:

1 x 1-hour examination – end of Term 1
1 x 2-hour examination – end of Term 2
1 x 3-hour examination – end of Term 4 (Pre-Q) – candidates answer 30 multiple choice questions (worth 30%). Candidates answer one compulsory question, which requires them to interpret and analyse previously unseen data relevant to a real economic situation (weighted 10% of total available marks), and three optional questions worth 20 marks each from a choice of six (worth 60%)

Continuation of subject: Successful completion of Pre-Q Economics provides an excellent base for further study at both Cambridge AS and NCEA Level 2. It is also a very useful foundation for study at both Cambridge A2 and NCEA Level 3.

Form 6 (NCEA Level 2)

Course description/aims: The content of this course is mainly macroeconomics and covers the major macroeconomic issues of employment, inflation, international trade and sustainable economic growth. Students are taught a variety of economic models and are introduced to common economic statistics and data relating to these topics.

Course outline: The course is divided into equal sections – each topic covers the definition, measurement, causes and effects of the issue. New Zealand’s recent historical record in each area is studied together with projections for the future.

2.1 – Analyse inflation using economic concepts and models [4 Credits, External]
2.2 – Analyse international trade using economic concepts and models [4 Credits, External]
2.3 – Analyse economic growth using economic concepts and models [4 Credits, External]
2.4 – Analyse unemployment using economic concepts and models [4 Credits, Internal]
2.5 – Analyse statistical data relating to contemporary economic issues [4 Credits, Internal]

Methods of assessment: A total of 12 credits will be assessed by an external three-hour examination and a further eight credits will be assessed by 2 internally assessed assignments.

School examinations:

1 x 1-hour examination – end of Term 1 (internal assessment)
1 x 2-hour examination – end of Term 2
1 x 3-hour examination – end of Term 3

Continuation of subject: Successful completion of this course is an advantage for NCEA Level 3 Economics.

Form 6 (AS)

Prerequisites: None. It is an advantage to have studied Economics in Form 5, but not essential. New students to Economics can, with appropriate motivation, realistically attempt AS Economics.

Course description/aims: This course generates marks for the first half of Advanced Level Economics and is correspondingly weighted at 50% (as well as being a course in its own right).

The course covers an introduction to Economics, basic economic concepts, and models; an extensive analysis of the market system (demand and supply); issues regarding market failure and the role of the government in attempting to correct market failure; macroeconomic measurement and models and macroeconomic issues including inflation, unemployment, economic growth, and international trade.

Course outline:

The basic economic problem
The price system
Government intervention in the price system
The macro economy
Government macroeconomic intervention
International economic issues

Methods of assessment: Paper 1 [1 hour] comprising thirty multi-choice questions and Paper 2 [2 hours] comprising one compulsory data response question and a choice of two 20-mark essays from four options. Each essay is split into two parts (8 marks and 12 marks).

School examinations:

1 x 1-hour examination – end of Term 1
1 x 2-hour examination – end of Term 2
1 x 3-hour examination – end of Term 3

Class assessments: Common tests are held each term and multiple-choice tests; data response questions and essays are also set regularly throughout the year.

Continuation of subject: A ‘good’ grade D or better allows for direct entry into A2 Economics. However, a ‘low’ grade D requires HOD approval, and a grade E or U candidate is unable to attempt A2 (but could consider retaking AS).

Form 7 (NCEA Level 3)

Prerequisites: None. It is an advantage to have studied Economics in Form 5 and/or Form 6, but not essential. Although the course starts from first principles, new students to Economics must be prepared to work very hard on basic concepts and terminology as content is recovered from Level 1 and 2 relatively quickly.

Course description/aims: This course covers a variety of topics in microeconomics, public economics, and macroeconomics. Several economics models and theories are covered, and current economic issues are used to help explain theory.

Course outline:

3.1 – Demonstrate understanding of the efficiency of market equilibrium [4 Credits, External]
3.3 – Demonstrate understanding of micro-economic concepts [5 Credits, Internal]
3.4 – Demonstrate understanding of government interventions to correct market failure [5 Credits, Internal]
3.5 – Demonstrate understanding of macro-economic influences on the New Zealand economy [6 Credits, External]

Methods of assessment: Students sit a three-hour external examination assessing four Achievement Standards worth 14 credits.

School examinations:

1 x 1-hour examination – end of Term 1 (internal assessment)
1 x 2-hour examination – end of Term 2 (internal assessment)
1 x 3-hour examination – end of Term 3

Special equipment/costs: A subsidised student write on workbook for $20.

Form 7 (A2)

Prerequisites:

Students who gain an A to a good D grade in AS Economics will be admitted to this course. A genuine interest in Economics as well as a willingness and ability to accept the greater workload and difficulty involved is essential. Students with an AS mark of 70% or less are strongly encouraged to re-sit AS in the May/June session
Students who gain a low D grade in AS Economics must consult with the Head of Economics to enter this course
Students who gain an E grade or Ungraded result in AS Economics will not be accepted into this course

Course description/aims: A2 is a relatively demanding economics extension course that involves a detailed study of micro and macroeconomics. Students are encouraged to read widely around topics under review and are expected to develop excellent written communication skills. Essays are very important at this level and require comprehensive knowledge and application of relevant theory and models, together with evaluation and analysis skills.

Course outline:

Detailed theory of the firm
Labour market theory
Government intervention in the price system
Advanced macroeconomic studies
Development Economics theory and issues
Globalisation

Methods of assessment:

External examination: Cambridge International Examination Assessment is in two papers
- Paper 3 [1 hour 15 mins] comprising 30 very technical and detailed multi-choice questions
- Paper 4 [2 hours] comprising one compulsory data response question and two 20-mark essays from a choice of four
School examination:
- 1 x 1-hour examination – end of Term 1
- 1 x 2-hour examination – end of Term 2
- 1 x 3-hour 15 mins examination – end of Term 3
Class assessment: Common tests are held each term and multiple-choice tests; data response questions and essays are also set regularly throughout the year

NZQA Level 4 Scholarship: Successful completion of the A2 course is excellent preparation for this optional three-hour examination, held late in Term 4. Online support plus some tutorials during study leave are provided for any interested students. Level 4 scholarship is based on the Level 3 programme Achievement Standards but has a format more like a combination of CAIE Data Response and essay. There is a real emphasis on writing skills.

If you have any questions, please feel free to contact our staff today.

Economics

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