NCEA Level 2 Economics 201
ECO201 Course DescriptionTeacher in Charge: M. McIntosh.
Recommended Prior LearningLevel 1 Economics will provide background knowledge but is not essential.
Students with no prior study of Economics are recommended to speak to the Teacher in Charge of Commerce
Economics 201
Level 2 Economics will provide you with an understanding of some of the key issues that face NZ. In 2024 the term “Cost of Living Crisis” is key in the mind of many, along with the need for government departments to find cost savings lest the government fail to reach surplus. Just a little under the radar is that New Zealand has been “living a champagne lifestyle on a beer budget”* with the current account deficit remaining persistently high after reaching its highest level in 14 years. In this course you will learn what this all means and whether you should be worried or not :-)
We investigate the government’s macroeconomic goals, key economic indicators and focus on the macroeconomic issues of Inflation, International Trade & Unemployment.
Our course sets you up to understand how the economy works along with knowledge of financial systems, trade & the labour market. This knowledge is useful for almost any career but especially for those interested in finance, commerce, journalism, politics, law and the public sector.
There are a number of extension opportunities available such as: The NZ Economics Competition, The NZ Monetary Policy Challenge plus other challenges or competitions from different NZ universities and government departments.
Course Overview
Term 1
Introduction to Macroeconomics and Inflation.
Statistics: Real GDP, CPI, Current Account, Terms of Trade, Trade Weighted Index and the Household Labour Force Survey.
Economic Issues: Economic Growth, Inflation, Trade and Unemployment.
Economic Models: Supply and Demand - Including Exchange Rates, Circular Flow Model and the Aggregate Demand and Aggregate Supply (ADAS) Model.
Inflation: Causes and Impacts
Students look at concepts such as Inflation, Deflation and Disinflation, what these terms mean and look like in real life including when they are and have been a problem in the past.
Students use the ADAS Model and the Quantity Theory Of Money to explore the reasons for the current Inflationary spike in New Zealand and the world before examining the impacts of Inflation on different groups in the Economy.
Practice towards AS 91222 ECO 2.1 External 4 credits
Term 2
Unemployment
Students look at measures and types of unemployment including recent New Zealand statistics and examples.
They then use Supply and Demand as well as the ADAS model to analyse changes in levels and types of unemployment
Students finish their study by analysing and researching the impacts of unemployment on various groups within New Zealand society.
Internal assessment for AS91225 ECO 2.4, 4 credits.
International Trade
We look at NZ trading history and patterns including a closer look at the Current Account and the Terms of Trade (TOT).
Students then use Supply and Demand to study the basis for trade between two countries before looking at NZ as a Price Taker in the World Market
We also look closely at what influences the exchange rate, including how changes in the NZ $ affect the level and value of trade.
We end our study of trade by looking at the impacts on different groups including the case for Free Trade and Protectionism.
Practice assessment for AS 91223 ECO 2.2. 4 Credits.
Term 3
Government Policies:
In this term we use our understanding of Macroeconomics to understand Government Economics Policies such as Fiscal, Monetary, Regulatory (Supplyside) and International Trade.
Students will visit Treasury, the Reserve Bank, MBIE or MFAT as part of their study (Subject to Availability)
Students will then be given at least two macroeconomic objectives to achieve for one economic issue. In 2025 this is likely to be International Trade.
They will then need to identify and explain at least two economic policies to achieve these objectives before analyzing the flow on effects to other economic issues such as Inflation, Economic Growth, Unemployment or a special issue such as Inequality or the Environment. AS 91227 (ECO 2.6) 6 Credits.
Derived Grade Exams will be held for 91222 (Inflation) and 91223 (Trade). 91403 (ECO 3.5) 6 Credits will be available by negotiation for interested students.
Term 4
Finish Government Policies & Exam Revision.
Pathway
NCEA Level 3 Business Studies 301, NCEA Level 3 Economics 301
Career PathwaysPolicy Analyst, Urban/Regional Planner, Elected Government Representative, Animator/Digital Artist, Cook, Sales Representative, Office Administrator, Receptionist, Advertising Specialist, Copywriter, Sales and Marketing Manager, Survey Technician, Personal Trainer/Exercise Professional, Agricultural/Horticultural Scientist, Agricultural Technician, Agricultural/Horticultural Consultant, Mechanical Engineering Technician, Product Assembler, Auditor, Animal Care Attendant, Case Manager, Medical Physicist, Microbiologist, Dancer, Biochemist, Chiropractor, Medical Laboratory Scientist, Psychologist, Trainer, Pharmacist, Oral Health Therapist, Diagnostic Radiologist, Dietitian, Plumber, Gasfitter and Drainlayer, Driving Instructor, Early Childhood Teacher, Health and Safety Adviser, Veterinarian, Primary School Teacher, Kaiwhakaako Māori, Massage Therapist, Accountant, Accounts Officer, Actuary, Finance Manager, Debt Collector, Managing Director/Chief Executive, Civil Engineer, Quantity Surveyor, Economist, Game Developer, Payroll Officer, Management Consultant, Data Analyst
Contributions and Equipment/Stationery1-3 1/2 day trips to visit economic organisations in Wellington city.