Question 1
The diagram shows a hypothetical market for wheat. A drought shifts supply from S1 to S2, while demand D does not change. Which describes the change in the market?
What is in VCE Economics Units 3 and 4
Unit 3 is Australia's living standards: markets, the domestic macroeconomic goals and the international economy. Unit 4 is managing the economy: monetary and budgetary policy, then aggregate supply policies. The examination covers both units.
26 weeks, 104 hours in all
Start with Scarcity, the PPF and efficiency
Unit 3: 8 of your hours. Every topic is examinable and starts with the same share; your confidence moves hours to the weak ones.
| Topic | Unit | Your hours |
|---|---|---|
| Scarcity, the PPF and efficiency | Unit 3 | 8 |
| Demand, supply and market equilibrium | Unit 3 | 8 |
| Price elasticity of demand and supply | Unit 3 | 8 |
| Market failure and government intervention | Unit 3 | 8 |
| Living standards, the circular flow, aggregate demand and aggregate supply | Unit 3 | 8 |
| Strong and sustainable growth and full employment | Unit 3 | 8 |
| Low and stable inflation | Unit 3 | 8 |
| Trade, the balance of payments and foreign liabilities | Unit 3 | 8 |
| The exchange rate, the terms of trade and competitiveness | Unit 3 | 8 |
| Monetary policy | Unit 4 | 8 |
| Budgetary policy | Unit 4 | 8 |
| Aggregate supply policies | Unit 4 | 8 |
Week by week
- Week 1Scarcity, the PPF and efficiency
- Week 2Scarcity, the PPF and efficiency
- Week 3Demand, supply and market equilibrium
- Week 4Demand, supply and market equilibrium
- Week 5Price elasticity of demand and supply
- Week 6Price elasticity of demand and supply
- Week 7Market failure and government intervention
- Week 8Market failure and government intervention
- Week 9Living standards, the circular flow, aggregate demand and aggregate supply
- Week 10Living standards, the circular flow, aggregate demand and aggregate supply
- Week 11Strong and sustainable growth and full employment
- Week 12Strong and sustainable growth and full employment
- Week 13Low and stable inflation
- Week 14Low and stable inflation
- Week 15Trade, the balance of payments and foreign liabilities
- Week 16Trade, the balance of payments and foreign liabilities
- Week 17The exchange rate, the terms of trade and competitiveness
- Week 18The exchange rate, the terms of trade and competitiveness
- Week 19Monetary policy
- Week 20Monetary policy
- Week 21Budgetary policy
- Week 22Budgetary policy
- Week 23Aggregate supply policies
- Week 24Aggregate supply policies
- Week 25A timed paper on the clock, then review every lost mark
- Week 26A timed paper on the clock, then review every lost mark
| Time | 15 minutes reading, 2 hours writing |
|---|---|
| Marks | 80, all questions compulsory |
| Section A | 15 multiple-choice questions, 1 mark each |
| Section B | Short-answer and extended-answer questions, 65 marks |
| Weight | 50% of the study score; Unit 3 and Unit 4 coursework 25% each |
The five areas of study
- Unit 3, Area of Study 1: scarcity and efficiency, demand and supply, elasticity, market failure and government intervention.
- Unit 3, Area of Study 2: living standards, the circular flow, aggregate demand and aggregate supply, growth, employment and inflation.
- Unit 3, Area of Study 3: trade, the balance of payments, the exchange rate, the terms of trade and international competitiveness.
- Unit 4, Area of Study 1: monetary policy and its transmission mechanism, and budgetary policy, with their stance, strengths and weaknesses.
- Unit 4, Area of Study 2: aggregate supply policies and their effects on competitiveness, productive capacity and living standards.
School-assessed Coursework
Coursework in Unit 3 and in Unit 4 is each 25% of the study score. It is set and marked by your school, and this course does not cover it.
Current data comes from your class
The study design asks you to judge the economy and policy over the past two years. Every figure in our questions is invented, so bring the current data your teacher gives you to each lesson's last step.
Try 2 questions
Question 2
| Year | Nominal GDP (billion dollars) | GDP deflator (index) |
|---|---|---|
| Year 1 | 500 | 100 |
| Year 2 | 546 | 104 |
The table shows nominal GDP and the GDP deflator for a hypothetical economy (invented figures). What was its rate of real GDP growth in Year 2, to one decimal place?
Next step
Questions people ask
What does the examination count for?
The end-of-year examination is 50% of the study score. School-assessed Coursework in Unit 3 and Unit 4 is 25% each.
Which study design does the course follow?
The VCE Economics Study Design accredited from 2023, Units 3 and 4.
Does the course cover Units 1 and 2?
No. It is built for Units 3 and 4 and the end-of-year examination.