HSC Economics. The smart way to prepare for your HSC.

Exchange Rates and the Six Economic Issues

This course will discuss the way in which current and relevant economic statistical data can improve responses in Economics, revise the key components of Exchange Rate theory and the arguments of Free Trade and Protection (HSC Topic 2), as well as a revise the key concepts of HSC Topic 3 – Economic Issues.

Particular attention will be given to the effects of fluctuations in exchange rates on the Australian economy, and the importance of Australia maintaining Free Trade relations with the globalised world. The revision of Topic 3 will focus on the highly examined areas of Unemployment and Inflation.

This course is part of a three-part series covering key areas from within this subject’s syllabus. Other courses include [HSC Economics Preparation (Part 1)](/course/HEC1) and [HSC Economics Preparation (Part 3)](/course/HEC3). Students do not need to attend all three parts in order to benefit. The series is supplemented by the [HSC Economics Exam Preparation Course](/course/HEXE) to prepare students' for end of year exams.

Outcomes

By the end of this course, you should be able to:

• discuss the impact of free trade and protection policies on the quality of life in Australia
• hypothesise about the structure of industry within Australia in the future with continued global interdependence
• use supply and demand diagrams to explain how the value of a currency is determined under a variety of exchange rate mechanisms
• analyse the impact of movements in the exchange rate on the Australian economy
• identify and analyse problems facing contemporary and hypothetical economies
• examine the arguments for and against increasing economic growth rates
• investigate the economic and social problems created by unemployment
• analyse the adverse effects of inflation on an economy
• analyse the effect of a continued current account deficit on an economy
• investigate recent trends in the distribution of income in Australia and identify the impact of specific economic policies on this distribution
• analyse the economic and social costs and benefits of inequality in the distribution of income
• examine the economic issues associated with the goal of ecologically sustainable development
• use the tools of economics to analyse a contemporary environmental issue
• calculate an equilibrium position for an economy using leakages and injections
• determine the impact of the (simple) multiplier effect on national income
• explain the implications of the multiplier for fluctuations in the level of economic activity in an economy
• calculate the unemployment rate and the participation rate using labour force statistics
• interpret a Lorenz curve and a Gini coefficient for the distribution of income in an economy
• synthesise and evaluate key problems and issues facing the Australian economy.

Content

• H1 Understanding of economic terms, concepts and relationships with respect to: free trade and protection policies; value of a currency is determined under a variety of exchange rate mechanisms; economic and social problems created by unemployment; inflation, external imbalance.
• H2 Economic role of individuals, firms, institutions and governments with respect to: structure of industry within Australia in the future with continued global interdependence.
• H3 Role of markets within the global economy with regards to: how the value of a currency is determined under a variety of exchange rate mechanisms.
• H4 Impact of global markets on the Australian and global economies with respect to: impact of free trade and protection policies on the quality of life in Australia.
• H5 Policy options for dealing with problems and issues in contemporary and hypothetical contexts with regards to: calculating an equilibrium position for an economy using leakages and injections.
• H6 Impact of economic policies in theoretical and contemporary Australian contexts with regards to: investigating recent trends in the distribution of income in Australia and identify the impact of specific economic policies on this distribution.
• H7 Consequences of contemporary economic problems and issues on individuals, firms and governments with regards to: a contemporary environmental issue.
• H8 Appropriate terminology, concepts and theories in contemporary and hypothetical economic contexts with regards to: implications of the multiplier for fluctuations in the level of economic activity in an economy.
• H9 Information from a variety of sources for relevance and reliability with regards to: synthesising and evaluating key problems and issues facing the Australian economy.
• H10 Economic information, ideas and issues in appropriate forms with regards to: determining the impact of the (simple) multiplier effect on national income.
• H11 Mathematical concepts in economic contexts with regards to: interpreting a Lorenz curve and a Gini coefficient for the distribution of income in an economy.

(Aligned to NESA Syllabus Reference Points)

Intended audience

HSC Economics students

Delivery style

In order to cater for students' different styles, this course will have a blend of lecturer instruction via PowerPoint, short answer practice, multiple choice analysis, essay planning, sample HSC question practice and feedback, extended discussion of issues and implications, and analysis of past student responses. Lessons will incorporate both group and individual student participation.

Materials

A course booklet covering syllabus content plus a Q&A booklet (provided electronically).

1. 1. Bring your own device

You are required to bring your own device. Please ensure it is fully charged as access to power is limited. Please note that the University does not carry any responsibility for your lost, stolen, or damaged devices whilst on the University premises.

Getting Through Your HSC: A Practical Guide

While you progress through this journey and also the conclusion of your schooling life, we know you’ll have a lot on your mind – exams, future study, careers – but remember, while keeping focused on these bigger goals and aspirations, it’s also important not to forget your own health and well-being.

For tips on staying motivated and keeping focused, dealing with anxiety, keeping healthy, relaxation, pre-study exercise and more, read our article Getting Through Your HSC: A Practical Guide.