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Welcome to Brettonomics This website contains easy to understand explanations and learning activities linked to the Queensland Certificate of Education (QCE) syllabus for Economics . Click on the links below to access learning resources. Unit 1 Markets and Models Unit 1 Topic 1 The basic economic problem Unit 1 Topic 2 Economic flows Unit 1 Topic 3 Market forces Unit 2 Modified Markets Unit 2 Topic 1 Markets and efficiency Unit 2 Topic 2 Inequality Unit 3 International Economics Unit 3 Topic 1 International trade Unit 3 Topic 2 Global economic issues Unit 4 Contemporary Macroeconomics Unit 4 Topic 1 Macroeconomic objectives and theory Unit 4 Topic 2 Economic Indicators and past budget stances Unit 4 Topic 3 Economic management QCE Economics External Exam Learning Resources INTERACTIVE ECONOMIC MODELS It can be hard to get your head around economic models when you just draw them down, or view them in a video. So here are a whole bunch of interactive economic models for the major topics you will cover in senior high school economics. Built by Brettonomics ... free to use ... click here for the complete list of interactives, or .... CLICK ON THE IMAGES BELOW TO EXPLORE THE INTERACTIVES Unit 1 Intro to economics Unit 1 Intro to economics Unit 1 Intro to economics Unit 1 Intro to economics Unit 2 Modified markets Unit 2 Modified markets Unit 2 Modified markets Unit 2 Modified markets Unit 3 International economics Unit 3 International economics Unit 3 International economics Unit 3 International economics Unit 4 Macro economics Unit 4 Macro economics Unit 4 Macro economics Unit 4 Macro economics Year 12 students: Strategies for IA3 Extended Response to Stimulus exam Links to all resources for IA3 Unit 4 Topic 1 :: Macroeconomic Objectives and Theory :: click here Unit 4 Topic 2 :: Economic Indicators and Past Budget Stances :: click here Explainer Videos: QCE Economics External Assessment 2024 Q11 2024 Economics EA: Short Response Q12 2024 Economics EA: Short Response Q13 2024 Economics EA: Short Response Q14 2024 Economics EA: Short Response Q15 2024 Economics EA: Extended Response Multiple Choice 2024 Economics EA CLICK HERE to see all the videos for QCE Economics External Assessments from past years Why study Economics? Economics is a challenging and rewarding senior high school subject that will hone your skills in analysis, decision-making, and justifying your arguments. Economics occurs in real-time, and helps us to understand the intended and unintended consequences of decisions made by ourselves, and the people, firms and governments around us. Early economists were essentially the moral philosophers of their time, and I hope that through your study of economics you begin to question the world around you, and think of how you can contribute to a better future. "I'll probably never study economics again, but at least I now understand what's happening on the news." (Will - past student, 2022) Economics Resources for Teachers The teacher resources and activities are 'classroom tested and student approved'. These resources are made available free of charge. Go to Teacher Resources tab in the menu above for teaching activities. Any feedback is appreciated. About Brett Get in Touch Send me any questions or feedback! brettonomics@gmail.com First Name Last Name Email Message Send Thanks for your message. I'll be in touch soon.

Unit 4 Topic 2: Economic Indicators and Past Budget Stances On this page: Real GDP growth, Underlying Inflation and Unemployment Rate 2015 - 2026 :: interactive data explorer Australian GDP Growth 1999 - 2026 :: interactive data explorer and quiz Australian Labour Market: Unemployment and Underutilisation 1999 - 2026 :: interactive data explorer and quiz CPI and Trimmed Mean Inflation Data Australia 1999 - 2026 :: interactive data explorer and quiz Real Wages Growth in the Australian economy :: interactive data explorer and quiz Capacity Utilisation and the Output Gap in the Australian economy :: interactive data explorer and quiz Phillips Curve - Inflation and Unemployment :: interactive economic model Australian Fiscal Policy: Federal Budget Analysis 1999 - 2026 :: interactive data explorer and quiz Australian Federal Government Debt: 1999 - 2026 analysis :: interactive data explorer and quiz Reserve Bank of Australia Cash Rate Monetary Policy 1999 - 2026 :: interactive data explorer and quiz Strategies for success in IA3 :: video Subject matter for Unit 4 Topic 2: Economic Indicators and Past Budget Stances Internal Assessment 3: exam specifications Unit 4 Topic 2: study and summary guides Unit4_Topic2_Study_Guide.docx Unit4_Topic2_Australian_Context.docx Gross Domestic Product Growth in the Australian economy GDP Growth: Measuring the Economy's Performance Gross Domestic Product (GDP) measures the total value of all goods and services an economy produces. GDP growth rate is probably the single most important indicator of economic performance, showing whether output is expanding, stalling, or contracting. The rate matters because growth underpins living standards. When GDP expands, businesses invest, employment rises, and incomes tend to grow. When growth begins to slow - and sometimes becomes negative - the consequences reverse: unemployment rises, inflation falls and household living standards decline. This is why both the Government and the Reserve Bank monitor the figure closely. The interactive below traces Australia's GDP growth since 1999, allowing you to examine the periods of expansion, the major economic shocks, and the downturns that have shaped the economy. Labour Underutilisation in the Australian economy Unemployment and Underutilisation: Measuring Spare Capacity The unemployment rate is one of the most closely watched economic indicators, measuring the proportion of people actively seeking work but unable to find it. Yet on its own it tells only part of the story. The underutilisation rate adds a second, often overlooked group — the underemployed: part-time workers who want and are available for more hours. Together, these measures reveal how much of the nation's labour is going unused — and unused labour represents lost potential output, meaning goods, services, and incomes that could have been produced are forgone. As both rates fall, spare capacity disappears and the economy nears its productive limit. Economists estimate this limit using the NAIRU — the level of unemployment below which wage and price pressures begin to build. Use the interactive below to trace both rates since 1999, and switch on the NAIRU overlay in the Explore tab to see when the labour market has run hot or cold. Consumer Price Inflation in the Australian economy Inflation: Tracking the Cost of Living Inflation measures the rate at which the general price level rises over time, eroding the purchasing power of money. In Australia it is captured by the Consumer Price Index (CPI), which tracks the cost of a representative basket of goods and services. The headline CPI includes every item in that basket — but this makes it volatile, as one-off swings in prices like fuel or fresh food can distort the underlying trend. To see through this noise, economists use the trimmed mean, which removes the most extreme price movements each quarter to reveal the persistent, broad-based rate of inflation. This is the Reserve Bank's preferred measure, because it better reflects the sustained inflationary pressure that monetary policy is designed to manage — and it is what guides the RBA's decisions on interest rates. Use the interactive below to trace both measures since 1999, and switch on the RBA target band to see when inflation has sat within the 2–3% goal. Real Wages Growth in the Australian economy Real Wages: Are We Actually Getting Ahead? It's easy to assume that a pay rise automatically means you're better off. But that's only true if your wages are climbing faster than prices. This is the difference between nominal wages — the dollar figure on your payslip — and real wages, which measure what that pay can actually buy once inflation is taken into account. The distinction matters enormously. When real wages are rising, households can afford more than they could before, and living standards improve. But when real wages fall — when prices outpace pay — the opposite happens: every dollar stretches less far, and people's standard of living is quietly eroded, even as their wages keep rising in dollar terms. Australia saw exactly this during the 2022–23 cost-of-living crisis. Use the interactive below to explore how Australian wages have measured up against prices since 1999 — and to see for yourself when workers were genuinely getting ahead, and when they were falling behind. Capacity Utilisation and the O utput Gap in the Australian economy Capacity utilisation tells us how intensively firms are using their available productive capacity — their plant, equipment, and workers — so a reading above its long-run average signals the economy is running hot with little spare capacity (a positive output gap and building inflation pressure), while a reading below signals idle resources and slack (a negative output gap). So we can then determine about the actual output of our economy compared to our potential output. We can also now visualise output location as it might appear on our production possibilities curve . The long-run average capacity utilisation in the Australian economy sits at about 81%. The interactive below can overlay: trimmed mean inflation - notice how inflation tends to peak after peak in capacity. unemployment - the gap between the unemployment rate to the NAIRU. Phillips Curve :: interactive model How to use the interactive model use the sliders (or drag curves) to shift the Short-Run Phillips Curve (SRPC) and the Long-Run Phillips Curve (LRPC) use the sliders or drag the dot to investigate the relationship between inflation and unemployment Australian Fiscal Policy :: Federal Budget analysis 1999 - 2026 Australian Federal Government Debt :: 1999 - 2026 analysis Subject matter Topic 2: Economic Indicators and Past Budget Stances In Topic 2, students apply their knowledge of economic indicators and theory to analyse and evaluate past economic events and decisions made in the annual federal budget of the government of the day. Explain and categorise economic indicators of past economic performance, including leading, lagging, and coincident indicators, using current data from objective sources, e.g. the Australian Bureau of Statistics and the Reserve Bank of Australia. Calculate the rate and changes of economic data, including real economic growth, inflation, the rate of unemployment, and the participation rate. Select data and information to analyse and evaluate past economic indicators, to assess the position of the Australian economy on the economic cycle at previous points in time the relationship between the economic cycle and economic objectives using past economic indicators and trade-offs, including conflicting objectives, intertemporal relationships, and the short- and long-run Phillips curve. Select data and information to analyse and evaluate the accuracy, reliability and efficacy of common indicators used to measure economic objectives in a past scenario recent Australian federal budget outcomes including cyclical and structural causes and effects of expansionary and contractionary fiscal policy stances within the last 3–10 years the Australian Government’s economic management and achievement of its macroeconomic objectives for a period within the last 3–10 years. Create responses that communicate economic meaning using data, information and diagrams to suit the intended purpose in paragraphs and extended responses that form an analytical essay format. Reproduced from Queensland Curriculum and Assessment Authority, Economics 2025 v1.2 General senior syllabus October 2024 Internal Assessment 3 Extended Response to Stimulus: Exam Specifications Assessment objectives Specifications The teacher provides an examination that: Comprehend features and economic concepts, principles and models of macroeconomic objectives, theories, economic indicators and budget stances. Analyse an economic issue that involves economic indicators and budget stances . Evaluate an economic outcome relevant to economic indicators and budget stances. Create a response that communicates economic meaning to suit the intended purpose in an analytical essay. relates to Unit 4 Topic 1 and Unit 4 Topic 2 is focused on a contemporary economic issue that is of national, state and/or regional significance to Australia requires an analytical essay in response to an unseen question with seen and unseen stimulus allows students to choose two economic criteria for their evaluation must elicit a variety of possible responses. Stimulus specifications The teacher provides seen and unseen stimulus that: enables a selection of current, accurate and relevant data and information from a variety of sources, e.g. government and other institutional websites, published reports, media articles and expert commentaries is a minimum of nine sources that include data and information in visual and written forms that fit on both sides of four A4-size pages or equivalent facilitates both the analysis and evaluation components of the task allows for unique responses. The teacher provides unseen stimulus that: fits on both sides of one A4 page or equivalent is succinct enough for students to engage with during planning time includes information that is critical to the item, so that students cannot write pre -prepared responses or predict the focus of the unseen question. Reproduced from Queensland Curriculum and Assessment Authority, Economics 2025 v1.2 General senior syllabus October 2024

Unit 2 Topic 1: Markets and Efficiency On this page: Negative Externalities of Production :: interactive model Positive Externalities of Production :: interactive model Negative Externalities of Consumption :: interactive model Positive Externalities of Consumption :: interactive model Price Floor :: interactive model Price Ceiling :: interactive model Subject matter for Unit 2 Topic 1: Markets and Efficiency Negative Externalities of Production A negative externality of production occurs when a firm's production process imposes costs on third parties who are neither buyers nor sellers in the market. The firm's private costs (MPC) understate the true social cost (MSC), causing the market to overproduce beyond the socially optimal level (Q*). How it occurs: Firms maximise profit by producing where MPC equals demand, ignoring spillover costs imposed on others — pollution, noise, health damage, or environmental degradation. This overproduction creates a deadweight welfare loss, representing value permanently destroyed. Why it matters: Unregulated markets systematically overproduce harmful goods. Society bears costs the producer never pays — healthcare burdens, environmental cleanup, reduced quality of life, and intergenerational damage. Without intervention, this market failure persists indefinitely. Solutions: Pigouvian taxes — taxing producers equal to the MEC per unit, shifting MPC up to MSC Regulations — emission standards, production limits, technology mandates Tradeable permits — cap-and-trade schemes setting pollution ceilings Subsidies for cleaner alternatives — incentivising firms to adopt greener methods Real-world examples: Coal power stations emitting carbon dioxide and particulates Factories releasing chemical waste into waterways Logging operations destroying biodiversity and watersheds Livestock farming generating methane contributing to climate change Positive Externalities of Production A positive externality of production occurs when a firm's production process generates benefits for third parties who are neither buyers nor sellers in the market. The firm's private costs (MPC) overstate the true social cost (MSC), causing the market to underproduce below the socially optimal level (Q*). How it occurs: Firms only consider their own private costs and revenues when making production decisions, ignoring spillover benefits flowing to others — skilled workers, knowledge diffusion, improved infrastructure, or community wellbeing. This underproduction creates a deadweight welfare loss, representing unrealised social value. Why it matters: Unregulated markets systematically underprovide goods with positive spillovers. Society misses out on benefits the producer never captures — technological advancement, workforce development, economic growth, and improved living standards. Without intervention, valuable productive activity remains permanently suppressed. Solutions: Production subsidies — reducing the firm's costs, shifting MPC down to MSC Direct government provision — publicly funding industries with large spillover benefits Research and development grants — encouraging innovation and knowledge creation Tax concessions — reducing the tax burden on high-spillover industries Real-world examples: Pharmaceutical companies developing vaccines that protect entire communities Technology firms whose R&D generates knowledge spillovers across industries Forestry companies replanting trees, improving air quality and biodiversity Construction firms building infrastructure that benefits surrounding businesses and residents Negative Externalities of Consumption A negative externality of consumption occurs when an individual's consumption of a good imposes costs on third parties who are neither buyers nor sellers in the market. The consumer's private benefit (MPB) overstates the true social benefit (MSB), causing the market to overconsume beyond the socially optimal level (Q*). How it occurs: Consumers maximise personal satisfaction by consuming where MPB equals MPC, ignoring spillover costs imposed on others — passive smoking, congestion, noise pollution, or social harm. This overconsumption creates a deadweight welfare loss, representing value permanently destroyed through excessive consumption. Why it matters: Unregulated markets systematically overconsume harmful goods. Society bears costs the consumer never pays — healthcare burdens, reduced amenity, social dysfunction, and long-term community damage. Without intervention, this market failure compounds over time, disproportionately affecting vulnerable populations who cannot avoid the spillover costs. Solutions: Pigouvian taxes — taxing consumers equal to the MEC per unit, shifting MPB down to MSB Regulations and bans — restricting consumption in public spaces or outright prohibition Education campaigns — informing consumers of true social costs to shift preferences Age restrictions and licensing — limiting access to harmful goods Real-world examples: Cigarette smoking imposing healthcare costs and passive smoking risks on non-smokers Excessive private vehicle use generating congestion, emissions, and road wear Alcohol consumption contributing to violence, healthcare costs, and family breakdown Plastic packaging creating long-term pollution and environmental degradation Positive Externalities of Consumption A positive externality of consumption occurs when an individual's consumption of a good generates benefits for third parties who are neither buyers nor sellers in the market. The consumer's private benefit (MPB) understates the true social benefit (MSB), causing the market to underconsume below the socially optimal level (Q*). How it occurs: Consumers only consider their own private benefits when making consumption decisions, ignoring spillover benefits flowing to others — herd immunity, reduced crime, increased productivity, or community cohesion. This underconsumption creates a deadweight welfare loss, representing unrealised social value that the market fails to capture. Why it matters: Unregulated markets systematically underprovide goods with positive consumption spillovers. Society misses out on benefits the consumer never considers — improved public health, reduced inequality, stronger communities, and long-term economic growth. Without intervention, underconsumption of socially valuable goods persists indefinitely, widening gaps between private and social outcomes. Solutions: Subsidies and vouchers — reducing the consumer's price, shifting MPB up to MSB Direct government provision — publicly funding education, healthcare, and vaccinations Awareness campaigns — highlighting social benefits to encourage greater consumption Compulsory consumption — mandating uptake of high-spillover goods such as education Real-world examples: Vaccination programs creating herd immunity that protects entire communities Education raising workforce productivity, reducing crime, and strengthening civic participation Public transport reducing congestion, emissions, and infrastructure wear for all road users Home insulation reducing household energy consumption and lowering neighbourhood carbon emissions Price Floors A price floor is a government-imposed minimum price set above the market equilibrium price (Pe). Because the floor price (Pf) exceeds equilibrium, quantity supplied (Qs) exceeds quantity demanded (Qd), creating a persistent market surplus and deadweight welfare loss. How it occurs: When governments intervene to keep prices artificially high, producers are incentivised to supply more while consumers demand less. The gap between Qs and Qd represents unsold surplus — goods produced but unable to find buyers at the mandated price. A non-binding floor set below equilibrium has no market effect. Why it matters: Price floors distort market signals, misallocate resources, and reduce overall economic efficiency. Deadweight welfare loss represents mutually beneficial trades permanently prevented. Surpluses create storage, disposal, and opportunity cost burdens. Workers or producers may benefit short-term while consumers and overall welfare suffer. Solutions: Government purchasing — buying surplus production to support the floor price Export incentives — redirecting surplus production to international markets Production quotas — limiting supply to reduce surplus while maintaining price Gradual deregulation — phasing out floors to restore market efficiency Real-world examples: Minimum wage legislation setting a floor on labour markets Agricultural price supports guaranteeing farmers minimum prices for wheat, dairy, and sugar European Union Common Agricultural Policy maintaining artificially high farm gate prices Minimum alcohol pricing policies setting floors on per-unit alcohol sales Price Ceilings A price ceiling is a government-imposed maximum price set below the market equilibrium price (Pe). Because the ceiling price (Pc) is below equilibrium, quantity demanded (Qd) exceeds quantity supplied (Qs), creating a persistent market shortage and deadweight welfare loss. How it occurs: When governments intervene to keep prices artificially low, consumers are incentivised to demand more while producers supply less. The gap between Qd and Qs represents unsatisfied demand — consumers willing to pay but unable to find goods at the mandated price. A non-binding ceiling set above equilibrium has no market effect. Why it matters: Price ceilings distort market signals, discourage production, and reduce overall economic efficiency. Deadweight welfare loss represents mutually beneficial trades permanently prevented. Shortages create queuing, black markets, reduced quality, and non-price rationing. While intended to protect consumers, ceilings often harm the very people they aim to help by reducing supply over time. Solutions: Targeted welfare payments — supporting low-income consumers directly without distorting prices Supply-side subsidies — encouraging greater production to reduce equilibrium price naturally Gradual deregulation — phasing out ceilings to restore market efficiency Price decontrol with safety nets — removing ceilings while protecting vulnerable households Real-world examples: Rent controls limiting maximum rents in cities such as New York, Berlin, and San Francisco Petrol price caps imposed during oil crises to protect consumers from price spikes Utility price regulation capping electricity and gas prices for household consumers Interest rate ceilings on loans limiting the maximum rate lenders can charge borrowers Subject matter Topic 1: Markets and Efficiency In Topic 1, students understand that markets can fail when the price mechanism results in a sub- optimal allocation of resources. They examine market failure and explore traditional and innovative measures and strategies using economic criteria, for example socially optimal and/or efficient outcomes. This topic analyses how markets may not always work efficiently and effectively, and the different choices and opportunities that exist when this phenomenon occurs. Describe key concepts using economic terminology, including allocative efficiency, productive efficiency, dynamic efficiency, externalities, incentives, market failure, monopolistic competition, perfect competition, oligopoly, monopoly, goods (public, private, merit and demerit), and market signals. Describe the - meaning of allocative, productive and dynamic efficiency as these relate to the optimal operation of markets - economic forces that limit perfect competition and foster an oligopoly market structure in many Australian industries. Compare optimal versus socially desirable outcomes. Analyse the differences between complete market failure (missing markets) and partial market failure. Explain the causes and effects of market failure, including - how the excesses of boom and bust cycles in economic growth may result in suboptimal and socially undesirable outcomes - the concepts of positive and negative externalities of production and consumption with a diagrammatic representation of the welfare loss/benefit associated with them - the difference between public goods (e.g. fresh air, national security, street lighting) and private goods, why markets might not adequately provide public goods and the concept of the free rider problem - ways in which the immobility of factors of production might lead to the misallocation of resources. Explain the causes and effects of market failure in at least one of the following situations - how market power may create a loss of market efficiencies - the ‘tragedy of the commons’ as it relates to common resources and the problem of ill- defined property rights, e.g. oceans and the atmosphere - how the lack of common ownership and the problems associated with global coordination limit government options when modifying markets, e.g. global warming and space junk in the outer atmosphere - asymmetric (imperfect) information that could lead to a misallocation of resources, e.g. adverse selection such as in the market for used cars (lemons), and moral hazard - how the features and characteristics of the extension of property rights may resolve economic inefficiencies associated with common resources, e.g. economic exclusion zones and economic zones in national parks. Explain different methods of market modification required to correct market failure, including direct and indirect taxation (e.g. Pigouvian taxes), subsidies, price floors/ceilings. Examples of different methods are suasion, tradable permits or direct state provision and regulation. Select data and information to analyse and evaluate - strategies to mitigate market failure, to improve equity or efficiency within the economy, including the creation of opportunities for innovation - the tension between costs to individuals and society of market failure - intended and unintended consequences of possible mitigation methods. Create responses that communicate economic meaning using data, information, graphs and diagrams in paragraphs and extended responses to suit the intended purpose.

Unit 1 Topic 1: The Basic Economic Problem On this page: Topic overview video What is economics? The division and specialisation of labour Why study economics? Factors of production Economic activity versus economic growth (and the factors of production) Production Possibilities Curve :: interactive model The Production Possibilities Curve (economic activity and economic growth) Production Possibilities Curve (interactive practice) Video Overview of Unit 1 Topic 1: linking the content to the syllabus PART 1: WHAT IS ECONOMICS? Syllabus: Describe the basic economic problem of relative scarcity and the need for decision-making by individuals, businesses and governments at local, state, national and international levels. Economics is the study of how humans make decisions in the face of scarcity. These can be individual decisions, family decisions, business decisions or societal decisions. If you look around carefully, you will see that scarcity is a fact of life. Scarcity  means that human wants for goods, services and resources exceed what is available. Resources, such as labour, tools, land, and raw materials are necessary to produce the goods and services we want but they exist in limited supply. Of course, the ultimate scarce resource is time - everyone, rich or poor, has just 24 hours in the day to try to acquire the goods they want. At any point in time, there is only a finite amount of resources available. Think about it this way: in November 2021, the labour force in Australia contained over 13,177,300 workers, according to the Australian Bureau of Statistics (ABS)[1]. Similarly, the total area of the Australia is 7,692,020 square kilometres[2]. These are large numbers for such crucial resources, however, they are limited. Because these resources are limited, so are the numbers of goods and services we produce with them. Let’s delve into the concept of scarcity a little deeper, because it is crucial to understanding economics. The Problem of Scarcity Think about all the things you consume: food, shelter, clothing, transportation, healthcare, and entertainment. How do you acquire those items? You do not produce them yourself. You buy them. How do you afford the things you buy? You work for pay. Or if you do not, someone else does on your behalf. Yet most of us never have enough to buy all the things we want. This is because of scarcity. So how do we solve it? Every society, at every level, must make choices about how to use its resources. Families must decide whether to spend their money on a new car or a fancy vacation. Towns must choose whether to put more of the budget into police and fire protection or into the school system. Nations must decide whether to devote more funds to national defence or to protecting the environment. In most cases, there just isn’t enough money in the budget to do everything. So why do we not each just produce all of the things we consume? The simple answer is most of us do not know how, but that is not the main reason. When you study economics, you will discover that the obvious choice is not always the right answer—or at least the complete answer. Studying economics teaches you to think in a different of way. Think back to pioneer days, when individuals knew how to do so much more than we do today, from building their homes, to growing their crops, to hunting for food, to repairing their equipment. Most of us do not know how to do all—or any—of those things. It is not because we could not learn. Rather, we do not have to. The reason why is something called the division and specialization of labour, a production innovation first put forth by Adam Smith,  in his book, The Wealth of Nations. PART 2: The Division of and Specialisation of Labour The formal study of economics began when Adam Smith (1723–1790) published his famous book  The Wealth of Nations in 1776. Many authors had written on economics in the centuries before Smith, but he was the first to address the subject in a comprehensive way. In the first chapter, Smith introduces the  division of labour, which means that the way a good or service is produced is divided into a number of tasks that are performed by different workers, instead of all the tasks being done by the same person. To illustrate the division of labour, Smith counted how many tasks went into making a pin: drawing out a piece of wire, cutting it to the right length, straightening it, putting a head on one end and a point on the other, and packaging pins for sale, to name just a few. Smith counted 18 distinct tasks that were often done by different people—all for a pin, believe it or not! Modern businesses divide tasks as well. Even a relatively simple business like a restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, servers to wait on the tables, a greeter at the door, janitors to clean up, and a business manager to handle paychecks and bills—not to mention the economic connections a restaurant has with suppliers of food, furniture, kitchen equipment, and the building where it is located. A complex business like a large manufacturing factory, or a hospital can have hundreds of job classifications. Why the Division of Labour Increases Production When the tasks involved with producing a good or service are divided and subdivided, workers and businesses can produce a greater quantity of output. In his observations of pin factories, Smith observed that one worker alone might make 20 pins in a day, but that a small business of 10 workers (some of whom would need to do two or three of the 18 tasks involved with pin-making), could make 48,000 pins in a day. How can a group of workers, each specializing in certain tasks, produce so much more than the same number of workers who try to produce the entire good or service by themselves? Smith offered three reasons. First, specialisation in a particular small job allows workers to focus on the parts of the production process where they have an advantage. People have different skills, talents, and interests, so they will be better at some jobs than at others. The particular advantages may be based on educational choices, which are in turn shaped by interests and talents. Only those with medical degrees qualify to become doctors, for instance. For some goods, specialization will be affected by geography and climate—it is easier to be a wheat farmer in rural Western Australia than in Cairns, but easier to run a tourist hotel in Cairns than in the Western Australian wheatbelt. Whatever the reason, if people specialise in the production of what they do best, they will be more productive than if they produce a combination of things, some of which they are good at and some of which they are not. Second, workers who specialise in certain tasks often learn to produce more quickly and with higher quality. This pattern holds true for many workers, including assembly line laborers who build cars, stylists who cut hair, and doctors who perform heart surgery. In fact, specialised workers often know their jobs well enough to suggest innovative ways to do their work faster and better. A similar pattern often operates within businesses. In many cases, a business that focuses on one or a few products (sometimes called its “core competency”) is more successful than firms that try to make a wide range of products. Third, specialisation allows businesses to take advantage of economies of scale, which means that for many goods, as the level of production increases, the average cost of producing each individual unit declines . For example, if a factory produces only 100 cars per year, each car will be quite expensive to make on average. However, if a factory produces 50,000 cars each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per car will be lower. The ultimate result of workers who can focus on their preferences and talents, learn to do their specialised jobs better, and work in larger organisations is that society (as a whole) can produce and consume far more than if each person tried to produce all their own goods and services. The division and specialisation of labour has been a force against the problem of scarcity. Trade and Markets Specialisation only makes sense, though, if workers can use the pay, they receive for doing their jobs to purchase the other goods and services that they need. In short, specialisation requires trade. Instead of trying to acquire all the knowledge and skills involved in producing all of the goods and services that you wish to consume, the market allows you to learn a specialised set of skills and then use the pay you receive to buy the goods and services you need or want. This is how the economy has evolved in modern society. PART 3: Why Study Economics? Now that we have gotten an overview on what economics studies, let’s quickly discuss why you are right to study it. Economics is not primarily a collection of facts to be memorized, though there are plenty of important concepts to be learned. Economics is better thought of as a collection of questions to be answered or puzzles to be worked out. Most importantly, economics provides the tools to work out those puzzles. If you have yet to be bitten by the economics “bug,” there are other reasons why you should study economics. Virtually every major problem facing the world today, from global warming, to world poverty, to the conflicts in Syria, Afghanistan, and Somalia, has an economic dimension. If you are going to be part of solving those problems, you need to be able to understand them. Economics is crucial. It is hard to overstate the importance of economics to good citizenship. You need to be able to vote intelligently on budgets, regulations, and laws in general. When the Australian Government had to make tough economic and financial decisions during the “Covid lockdowns” in 2020, what were the issues involved? Did you know? A basic understanding of economics makes you a well-rounded thinker. When you read articles about economic issues, you will understand and be able to evaluate the writer’s argument. When you hear classmates, co-workers, or political candidates talking about economics, you will be able to distinguish between common sense and nonsense. You will find new ways of thinking about current events and about personal and business decisions, as well as current events and politics. The study of economics does not dictate the answers, but it can illuminate the different choices. Source: https://openstax.org/books/principles-economics-2e/pages/1-introduction Footnotes [1]https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release [2]https://info.australia.gov.au/about-australia/our-country/the-australian-continent Factors of Production Syllabus: Classify the factors of production (land, labour, capital and entrepreneurial ability) and link these to income (rent, wages, interest and profit) Let's start with a question.... WHAT are the four factors of production? Answer: Land, Labour, Capital, and Enterprise (or Entrepreneurship). Easy! You've learnt this in class and can explain each of the the factors. And you know that the four factors are all required (in different combinations) to make different goods and services. So let's go deeper .... Economic Activity versus Economic Growth (and the factors of production) I believe that being able to distinguish between economic activity and economic growth this is one of the most important concepts that you need to understand in your study of economics. Economic activity represents the cyclical changes in the economy (also referred to as the 'short-run'). Sometimes economies are expanding / expansionary phase (as households, firms and government buy more goods and services), and sometimes economies are contracting / contractionary phase (as we buy less stuff). At any point in time, the available factors of production are somewhat fixed. For example: available labour is determined by the quantity of labour available to work with appropriate skills, knowledge and experience; land resources are relatively scarce, and generally allocated to a certain production function (eg. agriculture or mining); capital such as machinery and factory size is relatively fixed at a point in time. So the short-run refers to the level of output an economy with the currently available factors of production. In other words, the amount of possible output with a fixed amount of factors of production. Factors of production may not always be utilised to their full capacity When the level of demand in the economy is high, we will see that the available factors of production will be close to fully engaged in the process of making goods and services. For example, labour will have jobs, and we see this when the unemployment rate is low. Factories will be working near to full capacity, and maybe doing overtime shifts. Economy is in an expansionary phase of the economic cycle. If firms can't produce enough G+S to meet demand, they will tend to increase prices of the available stock to maximise profit. We call this demand-push inflation (more on this later). BUT, When the level of demand is low, the available factors of production will not be used to their full extent. For example, some workers will lose their jobs, and the unemployment rate will rise. Factories will cut back on production output, and some machines will not produce to their production capacity. So we will see a contraction in the level of economic activity. The 'ups and downs' in the economy represents changes in the level economic activity, and we refer to these changes as expansionary and contractionary . Economic activity :: data examples 1/3 Economic growth is a sustained increase in the level of output, caused by structural growth in the economy (the long-run). Over time, economies experience an increase in the quantity and quality of the factors of production. For example: Population increases leads to an increase in the quantity of labour Improvements in education and training improves the quality of labour, and workers tend to be more efficient (or productive) in their work. Improvements in technology can increase the level of output given the available resources (factors of production). An increase in capital investment (firms purchasing goods and services - such as additional machinery - to increase the production of final goods and services). What is an example that you can think of?? Eg. how can we improve our land resources to increase agricultural output? Economic growth occurs when an economy: Increases output due to an increase in the available factors of production; and/or Improves productivity - An increase in output the available for a given quantity of the factors of production (factor inputs). Productivity improvements occur when higher quality factor inputs are used (eg. more efficient technology, smarter people etc). Experiences a sustained increase in demand for goods and services, influenced by factors such as population increase, greater levels of international trade etc. Given the relative scarcity of factors of production, economists end to argue that improving productivity is the critical step for economic growth - it means that we are using the current factors of production in a more efficient way. That means that we can leave some factors - resources such as minerals in the ground - so that future generations can access these factors for future production. So the long-run refers to the situation where there is a change (generally an increase or improvement) in at least one of the factors of production. Economies generally exhibit long-run - or structural - economic growth, even though we will experience 'up and downs' in the level of economic activity in the short-run. Source: Andrew Norton Source: Reserve Bank of Australia Source: International Monetary Fund 1/1 The Production Possibilities Curve :: interactive model The Production Possibilities Curve: economic activity and economic growth Syllabus: Identify assumptions and use the production possibility curve to explain, by illustrating in diagrammatic form, the concepts of scarcity, choice, opportunity cost, trade -offs, underutilisation of resources, efficiency, productivity, unemployment and economic growth. Analyse and evaluate the production possibility curve to show the effects of different economic events, e.g. improvements in health, education or productivity of labour, asymmetric technology advances, war and famine. The Production Possibilities Curve (PPC) is the first economic model that you will learn in QCE Economics. In this section, I will focus on how the PPC can be used to illustrate changes in economic activity (short-run / cyclical) and economic growth (long-run / structural) - see the section above to review these concepts. This will also be important for later in Unit 1 when you learn about models for economic (business) cycles - all economic models are connected! If you want to review your calculations of changes in production possibilities, then scroll down for an interactive from our friends at econgraphs.org Image 1: Production possibilities curve Economic activity and the PPC The production decisions of goods and services in an economy falls into two camps: to produce capital (or intermediate) goods and services OR to produce consumer (or final) goods and services. Each economy will make a choice of how to distribute available factors of production to suit the needs and wants of economic stakeholders who purchase goods and services: Consumer goods and services for households Capital goods and services for firms and government The PPC represents the maximum output possible with the current amounts of the factors of production. At a point in time, the factors of production are considered fixed in quantity and quality. In economics, we call this the short-run. This is a really important term - make sure that you remember it. Therefore, the maximum level of output in the short-run would be any point along the PPC. But remember: it is a possibility! When total (aggregate) demand from economic stakeholders (household, firms and governments) is high, economic activity is expansionary, and firms will respond by increasing production, until all factors of production are fully employed. This is represented by a level of output that is on the PPC itself (eg point A in image 1 above). But once at full employment / production on the PPC, firms will struggle to further increase output - they are constrained by the relative scarcity of the factors of production. When an economy experiences contractionary economic activity, production levels may decrease, but the PPC doesn't always shift inwards or outwards. During an economic downturn (contractionary economic activity), firms will respond by reducing output. Firms generally want to produce only the amount of goods and services to meet demand. They don't want to have unsold stock sitting in warehouses. Nor do they want to employ staff when there isn't enough work available. So they will reduce output to meet demand, and this means that the available factors of production are not fully utilised in creating output. In image 2 , this change is demonstrated as a shift in output of consumer goods and services from a value of y to a value less than y, and same for capital goods and services (from x to <x). Total production has decreased from point A to point B. Image 2: Change in production output in a contractionary economy It is important to note that the theoretical production possibilities are unchanged. We still have the factors of production available to produce output anywhere on the PPC, but a decision has been made to decrease output to suit a change in the level of demand in the economy. BUT! The PPC will shift inwards when there is a decrease in availability of input factors (supply-side). For example , the decrease in supply of fuel during the 2026 Iran conflict reduces the capacity of firms to produce and ship goods. Concluding points: Changes in economic output in the short-run (eg from point A to point B) are primarily influenced by changes in demand (purchasing of goods and services by households, firms and governments). The amount of combined purchases across the economy is called Aggregate Demand (more on this later). If Aggregate Demand falls, the economy is contracting . If Aggregate Demand is increasing, the economy is expanding . The fluctuations in the level of of Aggregate Demand is called cyclical economic activity. Economic growth occurs when there is an increase in the quantity or quality of the factors of production Let's start with an example. Since the 1300's, The Netherlands has increased its available land mass by nearly 20%, and most of it with pretty simple technology by today's standards! You can read more about how they did it here . From an economics perspective, the first step in the improvement in factors of production would have been the organisation of the major projects - individual landowners working together for the mutual benefits from the improvements. We can call this enterprise / entrepreneurship in our factors of production framework. Land reclamation in The Netherlands 1300 - today. The increase in land would yield an increase in output (supply) of goods and services. In this instance, likely an increase in agricultural production. The increasing output would also require an increase in labour , which in the short-term is best achieved through migration. Then once you hit an output ceiling, you can increase the quality or quantity of capital - use more machines instead of labour. In The Netherlands agricultural production continues to increase through the use of greenhouses and hydroponic production methods (capital). They are the second largest exporter of agricultural products in the world, which is pretty incredible for a relatively small country! The PPC will shift outwards when there is an increase in the quantity or quality of the factors of production An outward shift of the PPC represents structural, long-run economic growth We know from the examination of cyclical economic activity earlier that the short-run is where all factors of production are fixed in quality and quantity. The long-run is where at least one (but likely all) of the factors of production are variable in quantity or quantity. When an economy, increases the quantity or quality of factors of production, then all production possibilities increase , hence the outward shift of the PPC. Image 3 illustrates this: the original PPC (and production at point A) is the orange curve. As factors of production increase, the curve shifts outwards (blue curve). No production decisions are yet made - all we know is that we have more inputs, or that we use our inputs more efficiently to create more output. An economy could decide to produce in any combination on the blue curve, and overall output is higher. Image 3: Outward shift of PPC represents economic growth The decision to produce at point B would be determined by demand factors such as consumer preference. At production point B: Production of consumer goods and services has increased from y to y1 Production of capital goods and services has increased from x to x1 In the long-run, there is no opportunity cost connected to the decision to increase production of either category of goods. The increase in output is due to either an increase in factor inputs - this is what we call structural (or long-run) economic growth . Concluding points: The level of economic activity (short-run) is generally determined by level of Aggregate Demand in the economy. It will experience expansionary and contractionary phases. It is cyclical in nature. Economic growth (long-run) occurs when there is a sustained increase in level of output in an economy. It is structural in nature. We focus on the longer term trend, rather than short-term fluctuations. Economic growth occurs through: an improvement in quality of factor inputs - productivity improvements (more output for the same quantity of factor inputs) an increase in the quantity of factor inputs - eg. more population leads to more work undertaken, which leads to increased output A sustained increase in demand for goods and services, influenced by factors such as population increase, greater levels of international trade etc. An outwards shift of the PPC represents structural (long-run) economic growth. Thanks to econgraphs.org for creating this open source interactive of the Production Possibilities Curve

External Exam: Video Explainers Below are video explainers unpacking the external exam for economics for Queensland Certificate of Education. Please ensure that you access all the past exam resources for economics at the Queensland Curriculum and Assessment Authority (QCAA) website prior to watching these videos. Use the videos to learn the strategies and writing structures for multiple choice, short response, and extended response questions for the economics external exam in Queensland. On this page: Explainer videos for 2024 Economics External Assessment Multiple choice explainer videos Short response explainer videos Extended response explainer videos Exam specifications Explainer Videos: QCE Economics External Assessment 2024 Q11 2024 Economics EA: Short Response Q12 2024 Economics EA: Short Response Q13 2024 Economics EA: Short Response Q14 2024 Economics EA: Short Response Q15 2024 Economics EA: Extended Response Multiple Choice 2024 Economics EA Multiple Choice Explainers 2021 Exam 2022 Exam 2023 Exam Short Response Explainers Unpacking "Explain" short response questions Unpacking "Analyse" short response questions 2022 exam question 11 2022 exam question 12 2022 exam question 13 2023 exam question 11 2023 exam question 12 2023 exam question 13 2023 exam question 14 Extended Response Explainers Writing structure and strategies for extended response 2022 exam extended response question 14 2023 exam extended response question 15 External Assessment Exam Specifications External assessment: Examination — combination response (25%) External assessment is developed and marked by the QCAA. The external assessment in Economics is common to all schools and administered under the same conditions, at the same time, on the same day. Assessment objectives Comprehend economic concepts, principles and models of macroeconomic objectives, theory and economic management. Analyse an economic issue that involves macroeconomic objectives and economic management. Evaluate an economic outcome relevant to macroeconomic objectives and economic management. Specifications This examination: Consists of a number of different questions relating to Unit 4 Topic 1 and Unit 4 Topic 3 may ask students to - respond using multiple choice, sentences or paragraphs and an extended response - annotate, calculate or draw diagrams - use unseen stimulus materials. Mode: written Time allowed - Planning time: 15 minutes - Working time: 120 minutes Students may use a QCAA-approved non-programmable calculator. Reproduced from Queensland Curriculum and Assessment Authority, Economics 2025 v1.2 General senior syllabus October 2024

Unit 3 Topic 1: International Trade On this page: Exchange Rates :: interactive simulation and quiz Exchange Rates :: AUD to USD Composition of Trade Direction of Trade Terms of Trade Net Exports / Balance of Trade (BoGS) Foreign Investment Balance of Payments Subject matter for Unit 3 Topic 1: International Trade Australian Dollar (AUD) Exchange Rate Simulator and Quiz How to use the simulator: use the sliders to change the relative values for the four key drivers of changes in the Australian exchange rate. or you can press the buttons for the historical events to see the key drivers that led to changes in AUD value in recent economic events. once you've had an explore, hit 'quiz mode' button and test your knowledge. Exchange Rate: Australian dollar to US dollar Review your understanding with resources from the Reserve Bank of Australia (RBA): Click here for the Exchange Rates and their Measurement Explainer by the RBA (or click here for the video version) Click here for the Exchange Rates and the Australian Economy Explainer by the RBA (or click here for the video version) Click here for the Drivers of the Australian Dollar Exchange Rate Explainer by the RBA (or click here for the video version) Key Periods in AUD History (1999–2026) 1999–2001: The Trough (Low Point): Following the Asian financial crisis in the late 1990's, the AUD fell to a low of 47.75 US cents in April 2001. 2002–2011: The Mining Boom & Appreciation: The currency experienced a massive, sustained appreciation driven by increased demand for Australian commodity exports (iron ore, coal) from China. Consequently, increased demand for AUD to pay for these commodities leads to currency appreciation. 2010–2013: Parity with the USD: In October 2010, the AUD reached parity (1:1) with the USD for the first time since it became a floating currency (1983). It peaked above US$1.10 in July 2011. 2014–2020: Post-Boom Normalisation: Following the end of the mining investment boom and falling terms of trade, the AUD depreciated from its 2013 highs. It hit a low point during the initial COVID-19 pandemic market stress in March 2020. 2021–2026: Consolidation and Volatility: The AUD has generally hovered lower, influenced by interest rate differentials between the RBA and the US Fed. The Australian cash rate has been lower than US cash rate, thus influencing flow of financial investment to US. In turn, this increases demand for USD, and consequently reduces demand to AUD - so AUD value falls relative to USD. Also, China's economic performance is below historic demand, which reduces commodity exports . As of early 2026, the AUD is considered undervalued by some, acting as a buffer (automatic stabiliser) for the economy - eg. maintaining export volumes / output as export goods are relatively cheaper for overseas buyers. Primary Drivers of the AUD (Since 1999) Terms of Trade (Commodity Prices): The most significant driver. High commodity prices (mining boom) drive appreciation, while declining terms of trade (post-2013) drive depreciation. China Exposure: Because a large portion of Australian exports go to China, the AUD is highly sensitive to China's economic health and manufacturing sector. Interest Rate Differentials: The gap between RBA rates and other major central banks (especially the Fed) influences capital flows. Higher relative rates in Australia tend to support the AUD. Global Risk Sentiment: As a "risk-on" currency, the AUD often appreciates during times of global economic optimism and depreciates during crises (flight to quality). Structural Changes to the Australian economy Internationalisation: The AUD has become the 6th most traded currency globally, with the AUD/USD pair being the 4th most traded. Floating Exchange Rate: The RBA has maintained a free float, which has allowed the currency to act as a "shock absorber" for the economy, adjusting to commodity price shocks. Inflation & Purchasing Power: $100 in 1999 had the same purchasing power as approximately $209.94 in 2026, reflecting a 109.94% cumulative price increase over that period. Australia Composition of Trade What is "composition of trade"? Composition of trade refers to the mix of goods and services that a nation exports and imports. How is it represented in data and graphs? The graphs generally reflect the data as the percentage (%) that a particular industry constitutes as a total of export or import trade. You will most often see time series graphs, which help us to interpret changes over time ("temporal change" if you want to use some fancy words). Sometimes you might see a pie graph which will give you the information for a point in time. It is important to remember that this shows the industry share of exports and imports. It doesn't show the total export volumes (which are likely rise across time aross out industries). Why is understanding the composition of trade important? Interpreting temporal change in composition of trade helps us to identify structural changes in the types of industries in global economies. We can spot emerging industries, as well as industries in decline. We can also identify changes in demand for different types of exports and imports, as well as changes in supply. So then we can identify the industries where a nation may have a comparative and / or competitive advantage. Explain the effects of the changes in Australia's composition of trade over time The second marking criteria under Analysis in the QCE ISMG is 'discerning explanation of economic relationships', so let's try and get 'discerning': What are the theoretical positive effects of the changes that you have identified in the data? What are the theoretical negative effects of the changes? And then what data could help you to expand your response and provide a deep discussion and justification of outcomes? Example: Australia has high share of total exports in resources. Most likely flowing to China as the major customer. Positive: Likely increase in productive capacity and output, utilising our abundance of 'land' factors of production, which creates employment and increases national income in high productivity industries. Negative: Heavy reliance on a particular export industry - what happens to our total export volume when demand for resource exports decreases? How does that affect GDP? (Hint: have a look at the decline in Australia's GDP around 2016 when the Chinese economy experienced contraction (or 2020 during the Covid pandemic). What other positives and negatives can you think of, and what additional economic information would you need to access to help to expand your response and provide deep discussion of outcomes? Now over to you: Use the method of analysis demonstrated above for export composition of trade and make the analysis for the import data. Identify trends, patterns, similarities and differences Make sure that you are clear on the big changes and compare and contrast to the small changes ('discerning') Quantify and calculate (eg % change, range, $ values, rate of change, volatility etc) Explain the positive and negative effects (both theoretical effects, and any effects reflected in data) Terms of Trade Australia OECD definition: Terms of trade reflect the relative price between a country’s exports and imports, and are measured as the ratio of the export price index to the import price index. Terms of trade indicate whether a country can purchase more or fewer imports for the same amount of exports. An increase in export prices relative to import prices signals an improvement in terms of trade. The indicator is presented as an index, with 2020 as the base year. Quick analysis: Australia's terms of trade have improved significantly over the last 25 years primarily due to a sustained boom in commodity export prices (iron ore, coal, LNG), driven by rapid industrialisation in China and emerging Asian economies. This was supported by increased export volumes, competitive depreciation of the Australian dollar at times, and falling import prices for technology. Key factors driving the improvement include: The Mining Boom (Structural change) Export Volume & Price Growth Declining Import Prices Diversification & Trade Agreements Service Export Growth Deepen your understanding: Click here for the Australia and the Global Economy – The Terms of Trade Boom Explainer from the Reserve Bank of Australia Australia Net Exports / Balance of Trade (BoGS) How to analyse Balance of Trade data 1. Calculation and economic theory Before you begin analysing any data, make sure that your understanding of the relevant economic theory is solid. Net Export data is the same as Balance of Trade and Balance of Goods Sold / Services (as we refer to it in the the Balance of Payments). The formula is value of exports minus value of imports. In other words X-M. See the link here back to leakages and injections in the Circular flow model! Net exports is a component of the Aggregate Demand formula, where AD=C+I+G+(X-M). 2. Review the information in the graph Make sure you are clear on: title, explanatory notes, the units of measure. Check if price values are abbreviated on the y-axis. Link your formula to the data to build some understanding. 3. Interpret the data Where net export value is less than zero, Australia has imported more goods and services than it has exported. So there is a net loss of income out of Australia. Where net export value is greater than zero, Australia is exporting more goods and services than it is importing, So we see a net inflow of income into Australia. 4. Make meaning of the data Use your analysis 'toolkit' (eg. cause and effect, compare and contrast etc) to deepen your interpretation. My take is that historically (up until 2008/9) Australia has been a net importer of goods and services. Effect is that we are sending our income overseas, so leakages are greater than injections, and therefore, the Net Export position is having a contractionary effect on economic activity. Then in 2009 we see a significant change to a positive net export position around the time of the 'mining boom' (big increase in commodity exports to China. There were a few contributing factors: Higher value AUD (higher price for the same quantity of the export) - check the currency data above Higher commodity prices (high levels of demand led to higher per-unit prices) - check the terms of trade data above Increased volume of sales In 2022 we see the most significant change in Net Exports in the data set. So what caused the changes? Here are some likely reasons: Exports increased whilst Imports remained the same, or Exports stayed the same and Imports decreased, or Exports increased and Imports decreased. Also, how could we interpret the Terms of Trade data on relative prices to help us determine causes ? And what was the AUD value at the time? Now its up to you to find the real world information to determine the reasons for this significant change. 5. Consider the effects on stakeholders and implications for the economy In step four you considered the economic events that caused the changes. Your understanding of economic theory can help you to extrapolate effects on stakeholders (households, firms and government). You can also dive into further data find effects (eg. did export-oriented firms receive increased income during the positive Net Export periods). Give this method a try with other data and let me know if it works! Foreign Investment There are two main ways in which foreign residents or companies can invest funds in the Australian economy: Portfolio investment (PI) refers to the purchase of securities (such as stocks or bonds) or equity and debt transactions that do not offer the investor any control over the operation of the enterprise. Common examples include the purchase of property (equity), shares in Australian companies (equity) or government bonds (debt) by foreign superannuation or pension funds. Foreign direct investment (FDI) is when an individual or entity from outside Australia establishes a new business or acquires 10 per cent or more of an Australian enterprise, and so has some control over its operations. Common examples include the establishment of Australian branches of multinational companies or joint ventures between Australian and foreign companies. (from: https://www.dfat.gov.au/trade/investment/about-foreign-investment) Graph 1: Graph 2: How to analyse the data 1. Calculation and economic theory Before you begin analysing any data, make sure that your understanding of the relevant economic theory and key terminology is solid. Some ideas to review: What is the purpose of FDI into Australian economy? What do we call the financial returns to on FDI to international investors? (Hint: think back to your sources of income from factors of production in Unit 1) What are the two ways in which investors acquire a financial return on PI - Equity? What is the financial return on government bonds and other debt called? Net International Investment Position = Australian Investment abroad / outflows (assets) minus Foreign Investment in Australia / inflows (li abilities) 2. Review the information in the graph Make sure you are clear on: title, explanatory notes, the units of measure. Check if price values are abbreviated on the y-axis. Link your formula to the data to build some understanding. 3. Interpret the data Using graph 1 (above at left), we can determine the following investment outcomes in 2024: Australia is a net liability holder (negative value) in Direct Investment - higher investment inflows into Australia than Australia invests abroad (outflows). Australia is a net asset holder (positive value) In Portfolio Investment (Equity) - Australians invest into overseas share markets at a higher value than international investment into Australian share market. Outflows are greater than inflows. International markets have significantly higher investment in Australian debt markets than we have in international debt markets. Outflows are less than inflows. Graph 2 shows the trends over time of international investment position. We can see that international investment into Australia has always been higher than Australian investment abroad. Australia’s International Investment Position (IIP) was a liability of $653.2b at 31 December 2024, a decline of $165.5b from the end of 2023. Net Investment data from the World Bank can help us to deepen our analysis: The trend to negative net FDI values means that there are increasing levels of International FDI into Australia relative the level of Australian FDI investment abroad The trend to positive net PI values means there are increasing levels of Australian PI investment abroad, relative to the level of PI investment coming into Australia from overseas 4. Make meaning of the data Use your analysis 'toolkit' (eg. cause and effect, compare and contrast etc) to deepen your interpretation. From the data available above, my take is that generally Australia has experienced net inflows of FDI - more investment dollars from Australia being invested overseas than foreign stakeholders are investing in Australia. In contrast to the FDI liability position, the PI position displays a trend towards positive values, signifying greater net outflows of PI. So we get FDI into Australia to build our productive capacity so firms can increase output and deliver profit through direct ownership in firms (which has low liquidity / difficult transfer of ownership). And Australia invests overseas in equities such as shares (high liquidity / easy transfer of ownership) that will deliver either capital growth in value, or dividend returns, or both. 5. Consider the effects on stakeholders and implications for the economy In step four you considered the economic events that caused the changes. Your understanding of economic theory can help you to extrapolate effects on stakeholders (households, firms and government). eg. these investments will yield income return for investors - what will be the net flows of income from, say, a negative FDI position? eg. Australian portfolio investment abroad is very strong - where did this money come from and what are the longer-term effects? Some ideas to help you along the last two steps: Key Trends in Australia’s Net Investment Position Resources Boom (2002–2007): The mining boom spurred massive foreign capital investment into Australia to increase the productive output of the mining sector. Shift to Net Equity Assets (2013–Present): A major structural change occurred around 2013, where Australia shifted from being a net foreign equity liability position to a net foreign equity asset position. This means Australians now own more equity in foreign companies than other nations own in Australian companies. This change has been largely driven by the growth of the Australian superannuation sector, which totals AUD$4.3 trillion (as of October 2025). Key Drivers of Change Superannuation Growth: The mandatory superannuation system has increased national savings, reducing the need for foreign funding for domestic investment, as well as providing cash for investment in other overseas firms and government Valuation Effects: Strong performance of foreign equity holdings (eg. shares in foreign companies) by Australian funds has boosted outward investment values. Currency Value: a structural decline in value of AUD from 2012 onwards increases the value of overseas investments held by Australians. Australia's Balance of Payments Balance of Payments (BoP) account is a statistical record of the money value of all financial transactions between Australia and the rest of the world. BOP is important because : BOP summarises economic conditions in a nation BOP helps to evaluate a country’s solvency Summarises nature, size, composition and direction of a country’s international trade It clarifies the foreign exchange position of a country e.g. high Aust exports = high demand for AUD from other nations = increase in relative value of AUD It informs the trade, industrial and economic policies of the Government: If balance of payments is favourable, the Government will take liberal view of imports, otherwise different types of restrictions (tariff and non-tariff measures) will be imposed as corrective measures. Subject matter Topic 1: International trade In Topic 1, students understand the dynamic nature and extent of Australia’s international trade interconnections. They examine the reasons for international trade and Australia’s place in the global economy. Current statistics are analysed to reveal relationships, patterns and trends that cause and affect Australia’s economic growth. Economic models are used to analyse movements in exchange rates over time and evaluate the consequent impacts on the domestic economy. Trends in the balance of payments are analysed to evaluate the implications for the Australian economy. Comprehend and describe key concepts using economic terminology, including absolute advantage, comparative advantage, competitive advantage, currency devaluation, currency revaluation, economic integration, economic union, exchange rate appreciation and depreciation, external stability, internal stability, factor endowment, exchange rates (fixed, floating and managed), free trade, sustainable economic growth, trade liberalisation, balance of payments, balance of trade, capital and financial account, current account deficit, current account, foreign investment, foreign debt, and terms of trade. Comprehend the concept of an open economy to explain how it operates in terms of the circular flow of income model. Comprehend and explain the advantages and disadvantages of international trade, and how trade can impact economic policy, including sustainable economic growth, and external and internal stability. Analyse the composition and direction of Australia’s trade patterns (e.g. the five largest importers and exporters), compare them to emerging patterns and trends in international trade, and calculate the percentage change from one period to the next. Comprehend and explain the development and contemporary relevance of trade theories, including the economic theories of absolute (see Adam Smith), comparative (see David Ricardo) and competitive advantage (see Michael Porter), and apply these theories using relevant diagrams and models. Comprehend, explain and construct diagrams applying demand and supply factors in a floating exchange rate system. Comprehend and explain the factors underlying the demand and supply of the Australian currency and how a floating exchange rates insulates the Australian economy from external shocks. Select data and information to analyse and evaluate effects of changes in Australia’s terms of trade on the economy from a range of perspectives causes of exchange rate appreciation or depreciation movements government policy responses to exchange rate movements and changing trade relationships using criteria e.g. employment in trade-exposed industries, economic growth (nationally or in state or local regions), efficiency (allocative and dynamic costs), and importation of goods and services. Comprehend, explain and classify a country’s international transactions into current and capital account statements. Comprehend and explain the significance of foreign investment to Australian economic development, e.g. to finance mining booms. Select data and information to analyse and evaluate patterns of Australia’s balance of payments including the current account and balance of trade over the last 5 or 10 years, including the percentage change cyclical and structural causes and effects of Australian current and capital account trends the significance of movements within the balance of payments on the domestic economy, from a variety of perspectives, e.g. import and export suppliers, and buyers the significance of Australia’s foreign debt position and foreign investment longitudinally . Create responses that communicate economic meaning using data, information, graphs and diagrams to suit the intended purpose in paragraphs and extended responses.

Unit 4 Topic 1: Macroeconomic Objectives and Theory On this page: Keynesian AD/AS model :: interactive model Neoc lassical AD/AS model :: interactive model The Business Cycle :: interactive model and quiz The circular flow of income, aggregate demand + government intervention in economic cycles :: video explainer Multiplier effect of government expenditure :: interactive calculator and simulation Keynesian Cross - aggregate expenditure multiplier :: interactive model Useful learning resources for this topic GDP :: interactive practice Unemployment :: interactive practice Inflation and money :: interactive practice Subject matter for Unit 4 Topic 1: Macroeconomic Objectives and Theory Internal Assessment 3: exam specifications Unit 4 Topic 1: study and summary guides Unit4_Topic1_Study_Guide.docx Unit4_Topic1_Australian_Context.docx Keynesian Aggregate Demand and Supply :: interactive model How to use the interactive model use the sliders (or drag curves) to shift the global supply curve and tariff value or press the 'try a scenario' button Why is this stuff important to know? The Keynesian version of AD / AS model helps to visualise the relative position of the economy on the economic cycle, and to then infer output levels, price levels and employment levels. I find it really useful to keep an eye on the three zones of the AS curve: When an economy is really in a bad trough AD will intersect AS along the flat section - where even if AD was to then shift right (increase), output and employment levels can increase, but price level (inflation) stays pretty much the same. The curved section (intermediate zone) is where an increase in AD will result in increase output and employment, but some price level pressure starts to appear. This is where economies tend to function - maybe this could be the RBA 'sweet spot' of 2-3 % inflation. The steep (vertical) section of AS (classical zone) helps to visualise a situation where an economy is producing at full employment of resources. So output can't increase, and any further increase in AD will only create further inflationary pressure. Neoclassical Aggregate Demand and Supply :: interactive model How to use the interactive model use the sliders (or drag curves) to shift the global supply curve and tariff value or press the 'try a scenario' button Why is this stuff important to know? The neoclassical version of AD / AS model is helpful to distinguish short-run from long-run aggregate supply (SRAS and LRAS). Where the Keynesian AS curve fits the SRAS and LRAS into one curve, the distinction in this model helps to give a clearer picture of the LRAS as representing the maximum output of an economy at a point in time, regardless of price (aka the Production Possibilities curve!). Trade equilibrium will occur at intersect of SRAS and AD - this will determine quantity and price level. The relative position of trade in relation to LRAS can then determine the position of the economy on the economic cycle contracting or expanding (based on whether we are trading the total available supply or not). A shift to the right (increase in LRAS) represents structural economic growth - a sustained increase in the level of production output in the economy. This occurs when there is an improvement in the quality and/or quantity of resource inputs (factors of production). The Circular Flow of Income, Aggregate Demand and Government Intervention in Economic Cycles Keynesian Multiplier Calculator How to use the interactive model use the sliders to set levels of leakages - MPS, Tax rate, MPM then adjust slider to view the effects on GDP of an increase in Government Expenditure (injection) Why is this stuff important to know? The RBA has some good resources explaining how the multiplier works. Click here for the video At a high school level, you generally learn the simple multiplier formula that only takes into account MPS. The calculator here also considers effect of tax rates on multiplier outcomes, as well as the effects of imports. So it gives you a more rounded view of outcomes. And this stuff is kinda intuitive anyway - like it's probably not an ideal outcome for additional government expenditure to go completely towards purchase imported goods as it represents a leakage in circular flow, so it will have a limited multiplier effect. This calculator now gives you some mathematical rationale. Keynesian Cross Multiplier :: interactive model How to use the interactive model use the slider to adjust the MPC of the economy use slider to change level of Government Expenditure Why is this stuff important to know? This model represents a simple multiplier relationship of income and MPC. However it's important to remember that MPC isn't just income minus savings. MPC is the income available for consumption once all leakages (S + T + M) have been taken into account and removed from income. And then 'marginal' which means 'additional' - what is the proportion of additional expenditure when we get an extra dollar? The multiplier effect is visible as the increase in additional GDP - when governments put in $1 then we will see a greater than $1 increase in GDP Disclaimer: This is one of those economic models that I think some teachers teach and others don't seem to get too hung up on it. I've included it for completeness. If you can articulate the idea that each extra dollar of government expenditure has a proportionally larger effect on GDP, then you are probably okay. I think that my calculator above is probably a more useful tool to develop your understanding of multiplier effect. Useful learning resources for this topic Australian Federal Budget Develop your understanding of fiscal policy, discretionary spending and automatic stabilisers. Unpacking Inflation Reserve Bank of Australia. Videos, explainers and interactives to develop your understanding of inflation. Josh Verlin YouTube series Josh Verlin is a Victoria based teacher who has produced a great video series covering the topics in this unit. Gross Domestic Product :: Interactive Practice Click here to access the videos, course notes and practice quizzes for macroeconomics created by Marginal Revolution University Interactive practice activities developed and owned by Marginal Revolution University . Published here for educational purposes. Unemployment :: Interactive Practice Interactive practice activities developed and owned by Marginal Revolution University . Published here for educational purposes. Inflation and Money :: Interactive Practice Interactive practice activities developed and owned by Marginal Revolution University . Published here for educational purposes. Subject matter Topic 1: Macroeconomic objectives and theory In Topic 1, students study the primary macroeconomic objectives of the Australian Government and economic theory. They connect this knowledge to a variety of economic concepts, principles and models. Comprehend and describe key concepts using economic terminology, including basis point and percentage point changes; consumer price index; deflation; labour force underutilisation; average propensities to consume and save; non-accelerating inflation rate of unemployment; participation rate; percentage change; stagflation; structural deficit. Distinguish nominal and real gross domestic product, wages and interest rates, and use calculations to identify change and scale. Comprehend and explain cyclical and structural factors affecting movements and shifts of short- and long-run aggregate demand and supply the factors affecting the production possibility curve the concept of the multiplier effect and calculate the value of the simple Keynesian multiplier, in terms of the marginal propensity to consume and save the four phases of the economic cycle, in the context of macroeconomic objectives the macroeconomic objectives of sustainable economic growth: full employment; price stability; external stability; sustainable development; and improved living standards how interest rates and federal budget decisions are policy tools that influence economic growth. Comprehend the circular flow of income model and the components of aggregate demand, focusing on economic policy decisions. Comprehend, explain and apply the aggregate demand/aggregate supply model to determine the overall price level and equilibrium level of real output in an economy. Comprehend and explain causes, effects, benefits and costs of the following to different groups and economic agents sustainable economic growth unemployment, including cyclical, structural, frictional, seasonal, natural, hidden, long-term and underemployment inflation, including headline, underlying, demand-pull, cost-push, imported and inflation expectations. Comprehend and explain the role in fiscal policy of automatic stabilisers and the role of discretionary spending in influencing aggregate demand and stabilising the economic cycle, and apply using diagrams. Reproduced from Queensland Curriculum and Assessment Authority, Economics 2025 v1.2 General senior syllabus October 2024 Internal Assessment 3 Extended Response to Stimulus: Exam Specifications Assessment objectives Specifications The teacher provides an examination that: Comprehend features and economic concepts, principles and models of macroeconomic objectives, theories, economic indicators and budget stances. Analyse an economic issue that involves economic indicators and budget stances . Evaluate an economic outcome relevant to economic indicators and budget stances. Create a response that communicates economic meaning to suit the intended purpose in an analytical essay. relates to Unit 4 Topic 1 and Unit 4 Topic 2 is focused on a contemporary economic issue that is of national, state and/or regional significance to Australia requires an analytical essay in response to an unseen question with seen and unseen stimulus allows students to choose two economic criteria for their evaluation must elicit a variety of possible responses. Stimulus specifications The teacher provides seen and unseen stimulus that: enables a selection of current, accurate and relevant data and information from a variety of sources, e.g. government and other institutional websites, published reports, media articles and expert commentaries is a minimum of nine sources that include data and information in visual and written forms that fit on both sides of four A4-size pages or equivalent facilitates both the analysis and evaluation components of the task allows for unique responses. The teacher provides unseen stimulus that: fits on both sides of one A4 page or equivalent is succinct enough for students to engage with during planning time includes information that is critical to the item, so that students cannot write pre -prepared responses or predict the focus of the unseen question. Reproduced from Queensland Curriculum and Assessment Authority, Economics 2025 v1.2 General senior syllabus October 2024

Teaching Resources QCAA Economics Unit 2: Modified Markets On this page: Unit 2 Topic 2 Inequality : A game to teach income inequality, the Lorenz curve and Gini coefficient A game to teach income inequality, the Lorenz curve and Gini coefficient PLEASE NOTE: Since I last ran this experiment with a class group I have developed an interactive Lorenz Curve model and Gini Coefficient calculator. You can find it on the Unit 2 topic 2 page . The interactive may be an effective tool for later revision or homework tasks, but this game is great in class. BACKGROUND: I'm not particularly effective in teaching the mathematical elements of Economics, so I had to figure out a way to get students to understand the calculations and graphing of quintiles and deciles in Lorenz curve and Gini coefficient. For the first couple of years I did the 'chalk and talk' and - through some further review - most students seemed to get it. But it didn't feel like 'sticky learning'. It also didn't feel like the middle class students I taught genuinely appreciated the extent of income inequality in Australia. Two reflection questions emerged: 1. how can I get students to intuit the calculations and graphing of the Lorenz curve? 2. how can I get them to feel what it might be like to be in the lower income quintiles? The method below is the result of this reflection. Resources required: Bundles of fake money The fake currency is in bundles of five notes equalling value of $100 Each value is based on real data - I used Australia, USA, South Africa (the highest inequality), China, Netherlands, and then a perfectly equal society (5 people each get $20). PPT slide to do graphing on the board. Here are the files that you'll need to run the activity : Currency for Lorenz curve Lorenz Curve graph Step 1: the set up This activity requires students to be in groups of five. Try and spread groups apart so that they don't interact between groups. Provide each group with the five currency notes of a country - each country currency equals $100 (aka 100%) - each student gets one currency note. Ensure that you give one group the 'perfectly equal' currency of 5 x $20 notes - this helps to draw the line of perfect equality onto the model. Each group is a country, and each student will represent an income quintile within that country - the note value is a % of the country income. Students can discuss how much money each member of their country has, but not to discuss with other countries. Step 2: small group graphing Using ppt slide above, as a guide , students can draw the 'frame' for the Lorenz curve in their books. Guide class to find the lowest currency value in their group, explain how that is the % income of the lowest 20% of population in that country, and model how to place a point on their graph for the 20% (first) quintile. Do the same for the 40% (second) quintile. From there on in, the groups can usually figure out how to graph the remaining quintiles. Have a break - ask students to compare their currency note / income with people in other groups (countries). Step 3: whole group graphing Using the ppt slide projected on the board, the class can now graph their curves onto a whole class model. Start with the country of perfect equality. I'd recommend plotting Australia as the second line - someone from the group can plot it onto the model projected onto the board. Then when you plot other nations, students can make predictions on the level of relative inequality, and provide reasons. Step 4: discussion This is where I've found this activity to be most beneficial. Some leaping off questions for you: Perfect equality country: how did it feel when you realised that you all earned the same income of $20? And then how did it feel when you realised that some people in other countries earn significantly more than you? Low income people: how did it feel knowing others in your country earned much more than you? Did anyone try and snatch the currency of another person in their group - why? Why does Netherlands exhibit more income inequality than USA (eg. political systems, government objectives, social structure, enterprise mindset etc)? Compare the first quintile for China and Australia - they are equal. Is this what you would have expected - why? Get some data on top 10%, top 5%, and top 1% of income earners for a selected economy. Step 5: Gini Coefficient Now you should be able to explain the Gini Coefficient with relative ease. I don't go down the path of calculating, but students tend to pick up on the Gini values - and the differences between countries - very quickly. Step 6: Additional tasks / Review / Homework Examine the Lorenz curve for a country of your own interest. Add to your graph in your book. Wealth inequality - what is the difference in Gini coefficient for wealth versus income inequality in Australia. What are some factors that may have contributed to this difference? Locate data on the changes in Australia's Gini coefficient over time. Describe the changes using analysis tools (trends, % change, range etc). Research three reasons for the change. Predict future trends and evaluate implications.

Unit 4 Topic 3: Economic Management On this page: Macroeconomics and Government Intervention in Markets :: video explainer Build your own Budget :: Fiscal Policy budget simulator Fiscal policy :: interactive practice Transmission Effect of Monetary Policy :: interactive simulator Subject matter for Unit 4 Topic 3: Economic Management External Exam specifications Unit 4 Topic 3: study and summary guides Unit4_Topic3_Study_Guide.docx Unit4_Topic3_Australian_Context.docx Build your own Budget :: Fiscal Policy interactive simulator How to Use the Budget Simulator Start in the Build tab. The sliders on the left are your policy levers, grouped into Revenue and Spending — switch between them with the toggle above. Move any slider and three things update instantly: your budget balance, the fiscal stance badge, and the projection chart running to 2036–37. Each lever displays its own budget impact, shown both in dollars and as a share of GDP. Use the $bn / % of GDP switch to compare the two framings — the difference over time is instructive. The preset buttons load ready-made scenarios. Try Chase a surplus first, then ask yourself who paid for it. For the underlying concepts — including why raising the GST barely improves the balance — open The Budget Explained. When you're ready, the Quiz tab will test your understanding. Remember: every lever is a real trade-off. There is no costless option. Data used to build this interactive is sourced from the 2026 Australian Federal Government Budget: budget.gov.au and pbo.gov.au . Fiscal Policy: Interactive Practice Source: Marginal Revolution University Transmission Effect of Monetary Policy :: Interactive Background Monetary policy changes flow through the economy through four channels: savings and investment channel; cash flow channel; asset prices and wealth channel; and exchange rate channel. These flows will then influence the level of activity in the components of aggregate demand, with a consequent effect on prices and GDP. How to use the interactive: Read change at top - is monetary policy loosening or tightening ? Then select the effect of the change in the cash rate on deposit and lending rates, and then continue through to determine the changes in transmission channels, all the way through to changes in GDP. Hit submit answer to see how you scored ! This interactive is inspired by educational resources developed by Reserve Bank of Australia. Click on the image to access the RBA paper version. Source: Marginal Revolution University Subject matter Topic 3: Economic Management In Topic 3, students examine policy choices made in Australia about economic activity. This topic has three sub-topics, each of which focuses on an aspect of policy decision-making based on demand management and supply-side economic ideas and perspectives. Comprehend and explain a rationale for the government to develop and implement economic policies that consider efficiency, equity and trade-offs stabilise the economic cycle and attain a range of economic objectives including sustainable economic growth; economic prosperity and wellbeing; internal stability; external stability. Comprehend and explain demand management and supply side policies and their limitations including structural deficits, time lags, global influences and political constraints. Sub-topic A: Demand management policies — fiscal policy Comprehend and explain the sources of government revenue (direct and indirect taxation; progressive, proportional, and regressive taxation) and the components of government expenditure (current, capital and transfer payments; public utilities and merit goods) in the federal budget. Analyse and evaluate the impact and/or effectiveness of fiscal policy responses to achieve Australia’s economic objectives in the future. Sub-topic B: Demand management policies — monetary policy Comprehend and explain the role of the Reserve Bank of Australia (RBA) and the objectives of monetary policy as outlined in its charter. Comprehend, explain, analyse and evaluate the concept of inflation targeting and the significance of monetary policy on the level of economic activity, and include a discussion of percentage change and basis point change transmission mechanism and channels of monetary policy, and their influence on the level of aggregate demand impact on and/or effectiveness of monetary policy responses to achieve Australia’s economic objectives. Sub-topic C: Supply side and microeconomic policies Comprehend and describe the nature and aims of aggregate supply policies (including microeconomic reforms) and explain their relationship to domestic macroeconomic objectives. Comprehend and explain how a government policy focused on a supply side improvement can impact Australia’s economic growth through productivity, efficiency or competitiveness, using infrastructure; education and training; research and development; innovation, and deregulation. Analyse and evaluate the impact of and/or effectiveness of policy responses to achieve Australia’s economic objectives. Reproduced from Queensland Curriculum and Assessment Authority, Economics 2025 v1.2 General senior syllabus October 2024 External Assessment Exam Specifications External assessment: Examination — combination response (25%) External assessment is developed and marked by the QCAA. The external assessment in Economics is common to all schools and administered under the same conditions, at the same time, on the same day. Assessment objectives Comprehend economic concepts, principles and models of macroeconomic objectives, theory and economic management. Analyse an economic issue that involves macroeconomic objectives and economic management. Evaluate an economic outcome relevant to macroeconomic objectives and economic management. Specifications This examination: Consists of a number of different questions relating to Unit 4 Topic 1 and Unit 4 Topic 3 may ask students to - respond using multiple choice, sentences or paragraphs and an extended response - annotate, calculate or draw diagrams - use unseen stimulus materials. Mode: written Time allowed - Planning time: 15 minutes - Working time: 120 minutes Students may use a QCAA-approved non-programmable calculator. Reproduced from Queensland Curriculum and Assessment Authority, Economics 2025 v1.2 General senior syllabus October 2024

Online Tutoring I am pleased to offer online tutoring in Economics to Australian senior secondary students, and specifically to Queensland students working towards their QCE. My approach to tutoring is to challenge you to help you reflect and develop your own learning and thinking strategies and structures to help you succeed in your assessments in secondary school, and in later higher education studies. My tutoring approach is especially useful for students in year 12 for both research reports and exams. I am a registered teacher with Queensland College of Teachers. I am not currently teaching in a Queensland school as I am living in The Netherlands from 2025 to 2028. What I offer: Individual support to develop content knowledge, and application of theory to analysis of economic issues. Guidance to develop your understanding of marking guides, and strategies to align your written work to the marking requirements. Frameworks to improve research skills and writing structures. Individualised practise tasks. Feedback and review of your work. Good chat. What I don't offer: Exemplars of work produced by former students. Editing of drafts for syntax and grammar. Explicit instruction on the "correct answer". But remember: economics is about figuring out possible solutions to complex problems, and I can help you develop your abilities to express your ideas in a clear and concise manner, supported by academic rigour. How we do these sessions: Google online meeting. You are welcome to record the meeting for later review. Cloud servers for access to additional resources. How much does it cost? There is an old expression that 'economists know the price of everything and the value of nothing'. Get in touch via the form below. Let me know what you would specifically like to improve in your work and we can figure out a price. And I hope that you see the value in it! Let’s Work Together Get in touch so we can start working together. First Name Last Name Email Message Send Thanks for submitting!

Teaching Resources QCAA Economics Unit 1: Markets and Models On this page: Unit 1 Topic 1: Economic problem. A game to introduce decision-making, opportunity cost and trade-offs. Unit 1 Topic 3: Market forces. A game to introduce price signals, equilibrium, consumer and producer surplus Unit 1 Topic 3: Market forces. Content library Unit 1 Topic 1: Economic Problem A game to introduce decision-making, opportunity cost and trade-offs This is an easy game to set up in class, and students can figure out the play process themselves. Step 1 : Access the resources Instruction sheet Picture cards Step 2: Play the game Set up your class in preferred student small groups, and give each group instructions and a picture card sheet - I keep laminated versions of each in my classroom. Groups have to decide who gets kidney dialysis and who doesn't. The second goal is to get exactly 30 hours of machine use - anything less is underutilisation of resource. The conversations in this game are very engaging, especially when they class figures out what happens to patients who don't receive dialysis! Step 3: Compare results and discuss There are some critical elements to cover in the discussion to engage student learning and support development of cognitions (analyse and evaluate): Economic concepts of scarcity, opportunity cost and trade-offs (analysis) Use of criteria to justify decision (evaluation) Examination of stakeholders (patient, hospital, family members etc) Economic concept of ceteris paribus - you can only make your decisions based upon the information on the cards. Some critical thinking discussion can cover questions such as "what else would we need to know about the patients to enable us to make more informed decisions?". Suggestion for extension: Ask groups to produce a Decision-Making Matrix or a PCQ chart to create a visual record of decisions made. Further notes: A very useful discussion point throughout all economics lessons is discussion of the scope and depth of information and data available to guide decision making - what do we know, and what do we need to find out AKA the 'known unknowns' and the 'unknown unknowns'. Developing a students' ability to discern what they still need to find out is very beneficial in developing their own research approach, as well as helping them to critically evaluate the scope and depth of any work that they produce. patient cards with pictures.docx Dialysis machine game instructions.docx Unit 1 Topic 3: Market forces A game to introduce price equilibrium, and consumer and producer surplus I've used this game as an effective method to introduce trading markets, price equilibrium , and consumer and producer surplus with year 11 classes at the beginning of teaching Unit 1 Topic 3 Markets and Models. I have found that this game works best prior to any explicit content teaching. It helps students to intuit concepts themselves, and also gives a reference point to refer back to during subsequent lessons on the market theory. It works best when there are more than 14 students. and is great when you have a bigger class size. Feedback from students is generally great, and the subsequent learning is 'sticky'. I'd highly recommend that you allocate a lesson for this game, What you will need: A deck of playing cards (or two) Instructions for buyers (link below) Instructions for sellers (link below) Excel spreadsheet to track trades (link below) A bell or similar to signal end of trading period. Please note: This game has been modified from the version published by Charles A. Holt to suit high school students. You can read his original article here . It'll probably help you to understand my instructions below. Also see Smith, Vernon L. “An Experimental Study of Competitive Market Behavior.” Journal of Political Economy, 70.2 (1962): 111-137 for the original literature on competitive market experiments. How to play: Step 1: Split the class into equal groups - one being the vendor group and one being the buyer group - and hand each person an instruction sheet. Give them a moment to read the instruction sheet. Note that my commodity is called a Wegnut but you can edit as you wish. Step 2: Explain that the classroom is now a trading floor, and the goal of each person is to make a trade. Emphasise the following: In a moment, teacher will be handing out a playing card with a number on it. THE NUMBER ON YOUR CARD IS SECRET !!! That number represents either the cost to produce the commodity (seller) or the cash available to buy commodity (buyer). You will only make one trade per round If you are a buyer, you want to buy for the lowest price BELOW the value of your card, meaning that you save money. The aim for buyers is to maximise savings (consumer surplus). If you are a seller, you want to trade for the highest price ABOVE the value of your card, meaning that you make profit. The aim for sellers is to maximise profit (producer surplus). Once the trade is agreed bring it to teacher to check and place onto trade board (the spreadsheet) Step 3: Hand out the trading cards as follows: Hand out the Black cards to buyers, starting with the "10" cards and then descending order - this maximises the cash that buyers have to negotiate trade. Hand out the Red cards to sellers, starting with the "2" cards and then ascending order - this minimises the cost of production for sellers - best opportunity for profit Step 4: Round 1 trade. Open the trading floor for trading - remind the class that value on their trading card is secret! Give students five minutes to negotiate a trade. When a trade price is agreed the pair can come to teacher to check trade is legitimate, and if so log it into round 1 on spreadsheet - project spreadsheet to class if possible. I usually call out the trade loudly to build some excitement and get other students motivated to trade. Importantly, it sends a price signal to the market. Continue to add trades to spreadsheet as they come in. The line graph that will display helps class to determine a price equilibrium Ring the bell at end of five minutes. You may find that quite a few students haven't executed a trade. Collect back all trading cards. Debrief: check for understanding of how the game functions , rules etc. Discuss role of price signals to inform market co-operation and trade. Step 5: Keep students in the same roles of buyer and seller and redistribute trading cards. Step 6: Round 2 trade. Now that the "practice round 1" has been debriefed, open trading for round 2. Keep timer to five minutes. Deending on the group I sometimes have let them just work through trades again, but if the class demonstrates clear understanding of game play then I will make this a round to execute as many trades as possible in the time available. Repeat process in step 4 above, and deepen understanding in debrief through discussion of: Price signal - how does the line graph help to discern a trade price to aim for in negotiations? Price equilibrium - does there appear appear to be a price where most trades seem to be occurring? Market efficiency - are all available units of the commodity being traded, or are some buyers and sellers still unable to trade? Consumer and producer surplus - if you saved some money in your trade what would you use it for in the future? If a producer sells above cost, how might the profit be allocated? Step 7: Round 3 trade. I have two choices here - I can either play another round where students stay on the same team, and we aim for 100% market efficiency - realising all available trades, or students swap sides and buyers become sellers, vice versa. I've also had some classes where students can also tally their surpluses across the rounds to establish who saved the most, and who created most profit. That then finishes the game. Aim for a final debrief, and use it to front-load the theory work in upcoming lessons. As a homework reflection task, ask students to write or record a summary of their role in the game, what happened, what they understand about price signals and price equilibrium etc. Trading game buyer instructions.docx Trading game vendor instructions.docx TRADING GAME chart of trades.xlsx Unit 1 Topic 3: Market forces Content library As a project during some university study, I put together a document using web-based and open-source resources to create a fairly complete document for high school study of market forces. The embedded videos may not work in the document, but the links should all still work. Let me know if you find it useful. DOWNLOAD the document

Teaching Resources QCAA Economics Unit 4: Contemporary Macroeconomics Unit 4 Topic 1: study and summary guides Unit4_Topic1_Study_Guide.docx Unit4_Topic1_Australian_Context.docx Unit 4 Topic 2: study and summary guides Unit4_Topic2_Study_Guide.docx Unit4_Topic2_Australian_Context.docx Unit 4 Topic 3: study and summary guides Unit4_Topic3_Study_Guide.docx Unit4_Topic3_Australian_Context.docx