VCE Economics study guide
VCE Economics · Work through your exam, one topic at a time.
VCE Economics is a Victorian Certificate of Education study accredited by the Victorian Curriculum and Assessment Authority (VCAA) for an accreditation period from 2023. The study design covers Units 1 to 4, spanning the behaviour of consumers and businesses, economic issues and living standards, Australia's economic prosperity, and managing the economy. It suits Victorian senior secondary students who want to understand how markets, governments and institutions allocate scarce resources, and who may progress to commerce, finance, public policy or economics at tertiary level. The official study design sets out areas of study, outcomes and assessment, and VCAA publishes support materials that incorporate the previously known Advice for teachers, including planning guidance, implementation videos, sample learning activities for Units 1 to 4, general assessment advice, and examination specifications with past examinations and reports. The VCE Economics study guide has 4 sections and about 1,299 words.
01Unit 1: The Behaviour of Consumers and Businesses
Unit 1 builds two microeconomic models. For consumers, know the law of diminishing marginal utility , the assumption of rational self-interest , opportunity cost , and the difference between a movement along a demand curve (caused by price) and a shift (caused by income, tastes, prices of substitutes/complements, expectations, population).
351 words, about 2 min02Unit 2: Economic Issues and Living Standards
Unit 2 shifts to macroeconomic issues and living standards . You must understand the business cycle (expansion, peak, contraction, trough), the measurement of GDP , and the difference between nominal and real values.
322 words, about 2 min03Unit 3: Australia's Economic Prosperity
Unit 3 analyses Australia's macroeconomic performance and the goals of policy . Know the objectives: strong and sustainable growth , full employment , price stability (the 2–3% inflation target), and external balance .
322 words, about 2 min04Unit 4: Managing the Economy
Unit 4 focuses on policy management . Know monetary policy : the Reserve Bank sets the cash rate to influence the cost and availability of credit, affecting consumption, investment, output and inflation.
304 words, about 2 min