11–12Economics 11–12 Syllabus (2025)

Principles of absolute advantage and comparative advantage

Identify comparative advantage for output from tables and production possibility frontiers (PPF)

Benefits of free trade, including greater access to resources, specialisation, development of economies of scale, increased competition, lower prices, wider choice, higher living standards

Costs and benefits of global supply chains

Arguments for trade protection, including supporting domestic employment in specific industries, shielding infant industries, enabling self-sufficiency in strategic industries and preventing dumping

Methods of protection, including tariffs, quotas, subsidies and local content requirements

Effects of trade protection on domestic and global economies

Identify the effects of tariffs on import-competing domestic markets, including size of the tariff, government revenue, total consumer spending, domestic producer revenue, quantity of imports and foreign producer revenue

Identify the effects of quotas on import-competing domestic markets, including size of the quotas, total consumer spending, domestic producer revenue and foreign producer revenue

Identify the effects of production subsidies on import-competing domestic markets, including the size of the subsidies, total consumer spending, domestic producer revenue, cost to government and foreign producer revenue

Interpret demand and supply graphs that demonstrate the effects of tariffs, quotas and subsidies on import-competing domestic markets

Interpret demand and supply graphs that demonstrate the effects of export subsidies on the world market, where world price equals equilibrium price

Arguments for and against the use of bilateral and multilateral trade agreements, including regional trading blocs

Role and effectiveness of the World Trade Organization (WTO) in facilitating multilateral free trade agreements and resolving trade disputes between member states

Reasons for major trends in global trade and protectionism

Extent to which Australian Government policies promote free trade

Types of international investment flows, including foreign direct investment (FDI) and portfolio investment

Costs and benefits of FDI and transnational corporations to the global economy

Costs and benefits of international portfolio investment to the global economy, including liquidity, access to capital, volatility and financial crisis contagion

Role and effectiveness of the International Monetary Fund (IMF) in maintaining international financial stability

Features of Australia’s floating exchange rate system, including currency appreciation and depreciation

Construct and interpret demand and supply graphs to demonstrate how the value of a currency is determined under a floating exchange rate system

Reserve Bank of Australia’s (RBA) intervention in foreign exchange markets to affect the value of the Australian dollar during periods of significant market disorder

Domestic and global factors affecting demand and supply of the Australian dollar

Effects of exchange rate movements on households, businesses, the government and the Australian economy

Reasons for major trends in the value of the Australian dollar

Features of economic development, including economic structure, education, health and sustainability

Relationship between economic growth and economic development, and the importance of inclusive and sustainable growth to long-term wellbeing

Measures of economic development, including the Human Development Index (HDI) and GDP adjusted for a common currency, differences in population and purchasing power parity (PPP)

Characteristics of different types of economies, including least developed countries, developing countries, emerging economies and advanced economies

Factors contributing to differences in economic development between countries, including strength of institutions, geography and natural resource endowment, quality of human capital and infrastructure

Global equity issues from the uneven distribution of economic costs associated with climate change

Effects of international economic development on the level and geographical distribution of absolute poverty in the global economy

Role and effectiveness of the World Bank Group (WBG) in achieving economic development in developing countries

Factors contributing to the vulnerability of the Australian economy to fluctuations in regional and international business cycles

Factors contributing to the resilience of the Australian economy against external shocks

Effects of changes in the global economy on the performance and structure of Australia’s economy