economics sac

the purpose of economic activity
• the meaning of material and non-material living standards
• the five-sector circular flow model of the economy
• the business cycle
• types of economic indicators, such as leading, lagging and coincident
• the relationship between the business cycle and economic indicators
• the meaning and importance of aggregate demand and its components
• the factors that may affect the level of aggregate demand and the level of economic activity
• the meaning and importance of aggregate supply
• the factors that may affect the level of aggregate supply and the level of economic activity
• the measurement of economic growth using changes in real Gross Domestic Product (GDP)
• the potential benefits of economic growth, such as growth in material living standards, improved non-material living standards, employment opportunities and economic development
• the potential costs of economic growth, including boom and bust economic cycles, congestion and pollution, environmental damage, potentially widening inequality and ‘affluenza’
• the limitations associated with using real GDP and real GDP per capita to measure changes in living standards
• alternative measures of economic activity and living standards
The Key skills:
• define key economics concepts and terms and use them appropriately
• construct and interpret economic models including the business cycle and the five-sector circular flow model of the economy
• gather, synthesise and use economic data and information from a wide range of sources to analyse economic issues
• identify trends, patterns, similarities and differences in economic data and other information
• discuss the potential costs and benefits associated with increasing economic activity