Economic issue of special interest
At level 7, the focus for an economic issue of special interest cannot be inflation, international trade, economic growth, and unemployment, because analysis of these issues is assessed in the achievement standards:
- AS91222 Economics 2.1 - Analyse inflation using economic concepts and models.
- AS91223 Economics 2.2 - Analyse international trade using economic concepts and models.
- AS91224 Economics 2.3 - Analyse economic growth using economic concepts and models.
- AS91225 Economics 2.4 - Analyse unemployment using economic concepts and models.
A possible example of an economic issue of special interest is the inequitable distribution of New Zealand’s income. Key concept indicators for this example are set out below.
Key concept indicators
- Identifies and (in context) uses concepts related to an inequitable income distribution, such as:
- unequal income that is equitable or inequitable
- equal income that is equitable or inequitable
- different measures of income and wealth
- absolute and relative poverty.
- Uses the Lorenz curve model or gini-coefficients to illustrate unequal income distribution.
- Uses supply and demand models to illustrate that the incentive of unequal reward is fundamental to the market system.
- Integrates changes shown on models into detailed explanations of causes of unequal income distribution.
- Compares and contrasts the impact of the different causes of unequal income distribution, such as:
- unequal endowment, for example, ownership of natural resources or different individual skills
- unequal opportunity, for example, prejudice against race, gender, age
- stage in life cycle and personal characteristics, for example, being an optimist, being willing to take risks or work hard
- luck, for example, winning lotto, and inheriting wealth.
- Compares and contrasts the impacts of changes in the distribution of income on various groups in New Zealand society, including:
- positive effects of inequality, for example, encouraging innovation and enterprise, more efficient use of resources, providing funds for investment or philanthropy
- negative effects of inequality, for example, poverty, lack of opportunity (the poverty cycle), social ills (crime, stress, ill health), resource exploitation.
Last updated May 9, 2013