SUMMATIVE TASK 2
Economics and Business
Economic performance and standard of living
Year 10
TASK 2
Assessment task — Managing economic performance and standard of living
Name
Class
Teache
Due Date
Part A – consult WRC
Part A – C – consult WRC
Task
Students conduct an inquiry and propose a course of action for a government about strategies to manage economic performance and improve living standards in an analytical response.
Instructions
Part A: Analyse and interpret data and information about economic performance and living standards.
Part B: Conduct an inquiry about strategies to manage economic performance and improve living standards.
Part C: Present evidence-based conclusions and reasoned arguments in an analytical response.
Conditions
Undertaken individually
Undertaken in class time
Working time 8 weeks- Part A due week 2 term 2 and Part B and C due in week 5 term 2.
Stimulus material provided with assessment
400–800 words for analytical response
Use a referencing style recommended by your teache
All parts of the assessment task must be completed.
4 of 14
~ 10 ECB Summative Task 2.docx
Part A: Analyse and interpret data and information about economic performance and living standards
1. Analyse the data and information gathered about Australia’s and Maryville’s economic performance and living standards. [Hint – use sources from Diagnostic Tasks 1 & 2]
Be sure to use the data and information you gathered about Australia’s and Maryville’s economic performance and living standards as evidence to support your answers.
1. Describe Maryville’s performance on the trade cycle according to leading, coincident and lagging indicators and measures of its standard of living.
Coincident indicators are elements that frequently fluctuate concu
ently with the state of the economy as a whole. One may classify the GDP growth rate as a coincidence indicator. According to what was previously said, Maryville's GDP growth rate in December 2010 was -0.5, while it was 1 in December 2011, 0.4 in December 2012, and 1.6 in December 2013. These numbers indicate that the economy has been growing at a modest pace, but with some swings.
In Maryville, the unemployment rate, which was 11% in December 2013, might be a lagging indication. This indicates that the labour market has not yet fully recovered despite modest economic development.
1.
Describe Australia’s performance on the trade cycle according to leading, coincident and lagging indicators and measures of its standard of living.
Leading Indicators
Business Confidence: Business confidence measures how optimistic or pessimistic business owners are about the state of the economy. It is a key leading indicator for the Australian economy. It is frequently impacted by elements including the state of the global economy, governmental regulations, and business-specific events.
Consumer Confidence: Another leading indicator that sheds light on Australian home purchasing patterns is consumer confidence. It is influenced by things like interest rates, employment growth, and income.
Coincident Indicators:
Gross Domestic Product (GDP): A measure of a nation's economic activity, GDP is regarded as a coincident indicator since it offers a cu
ent picture of economic performance. Australia's GDP growth rate has remained largely consistent in recent years, averaging between 2-3% annually.
Employment: Employment is a crucial economic health indicator since it shows how the labour market is doing. The unemployment rate in Australia has decreased in recent years, from 6.9% in September 2020 to 4.6% in March 2023, reflecting an improvement in the employment rate.
Lagging Indicators:
A lagging indicator that reflects changes in the pricing of goods and services is inflation. Australia's inflation rate has generally been between 2 and 3 percent during the past few years.
Interest rates are a lagging indicator that the Reserve Bank of Australia's (RBA) monetary policy actions are reflected in. Since 2016, the RBA has maintained interest rates at historically low levels in an effort to boost economic development.
With a GDP per capita of USD 60,000, one of the highest in the world, Australia enjoys a high level of life. High levels of social welfare, healthcare and education are further measures of a nation's standard of life. However the two most important problems that might affect the general level of life are still income disparity and housing affordability.
Explain how Maryville’s economic performance and standard of living compares to Australia’s.
Maryville has much worse living standards and economic performance than Australia. Maryville, a little island nation, has experienced economic hardship due to co
uption, subpar administration, and an incompetent government. In contrast, Australia is a huge, industrialised country with a robust economy and high living standards.
One metric used to assess the level of living is the GDP per capita. Compared to Maryville, Australia has a substantially larger GDP per person. Australia's GDP per capita was around 68,158.58 USD in 2020, compared to Maryville's GDP per capita of only 4,600 USD. This large disparity is a reflection of the stark economic divide between the two nations.
Explain the relationship between economic performance and living standards.
The relationship between economic performance and living standards is complex and interconnected. Economic performance refers to the overall health and growth of an economy, typically measured by indicators such as GDP growth, employment rates, productivity, and trade balances. Living standards, on the other hand, refer to the quality of life and well-being experienced by individuals within a society, encompassing factors such as income levels, access to education, healthcare, housing, and overall satisfaction.
Living standards are significantly influenced by economic performance since a healthy and expanding economy offers the resources and opportunity needed to raise people's standards of living. When an economy is doing well, it produces increased income levels, employment openings, and investments in infrastructure and public services. This may result in better access to housing, healthcare, education, and other vital products and services.
greater economic performance frequently leads into greater salaries and more job possibilities, which help to raise living standards. People who are employed steadily and earn more money typically have better access to basic requirements, can afford higher-quality housing, and have more money available for extracu
icular activities, travel, and other non-essential costs.
In summary, economic performance and living standards are intertwined, with economic growth providing the foundation for improving living standards. A strong economy creates opportunities for higher incomes, employment, access to essential services, and investments in public goods, all of which contribute to an improved quality of life. However, addressing social disparities and ensuring equitable distribution of the benefits of economic growth are essential to truly enhance living standards for all individuals within a society.
Explain reasons for the variations in economic performance and living standards between Maryville and Australia.
Resource Endowments: Australia is known for its abundant natural resources, including minerals, energy, and agricultural products. These resources contribute significantly to Australia's export earnings and economic growth. Maryville, on the other hand, also possesses natural resources such as nickel, but mismanagement and co
uption have hindered its economic potential.
Political Stability: With a long history of democratic government, Australia has a stable political system. Economic expansion, investment, and policy continuity are all supported by stable political institutions. A history of co
upt and autocratic rulers in Maryville might threaten the country's economic stability and discourage international investment.
2. According to the article ‘Breaking the cycle’, the newly elected Prime Minister of Maryville, Mr Oboeron ‘… has appointed an economic advisor to assist the government in turning around Maryville’s fortunes’ (Source 1).
1. Explain why governments are involved in managing economic performance to improve living standards.
Promoting Economic Growth: To promote economic growth, governments develop policies and plans. Governments can create an environment where companies may flourish and attract investments and boost economic activity by investing in infrastructure and education. Better employment prospects, higher pay and improved living standards are all results of economic progress.
Identify two alternative strategies governments use to influence the performance of the economy. Record your ideas in the first column in the table below.
Define and explain how governments use the two alternative strategies to manage economic performance and improve living standards according to key indicators. Record your ideas in the last two columns in the table below.
Don’t forget to think about what aspects of the economy (or key economic objectives) the government attempts to influence.
Types of government management strategies
[b] Define the strategy
[c] How does the strategy work to manage an economy and improve living standards in Australia according to indicators of economic performance?
Part B: Conduct an inquiry about strategies to manage the economy and improve living standards
Remember, your objective as economic advisor is to conduct an inquiry and propose a course of action for the Maryville Government about strategies to manage the economy and improve living standards in an analytical response.
Your advice to the government should consider alternative strategies the government can use to manage the economy and improve living standards.
3. Develop a hypothesis to frame your investigation.
(For example: The Maryville Government should implement …
to manage economic performance and improve living standards.)
A hypothesis is a statement that is assumed to be true. The statement is tested to see if it can be verified. The hypothesis is then refined as data and evidence is gathered. Once confirmed by data and evidence, it forms the basis of an evidence-based conclusion.
1. Record your hypothesis.
Develop questions about the hypothesis to frame your investigation of alternative strategies the government can use to manage the economy and improve living standards.
For example: How would manage economic performance and improve living standards?
My key questions
4. Evaluate how the two strategies will manage economic performance and improve living standards in Maryville using appropriate criteria.
Use the information in Q 2 to evaluate the alternative strategies.
1. Write a paragraph to evaluate how Government strategy 1 will manage economic performance and improve living standards in Maryville using appropriate criteria.
Write a paragraph to evaluate how Government strategy 2 will manage economic performance and improve living standards in Maryville using appropriate criteria.
Propose and predict potential consequences of a course of action for the Maryville Government to manage economic performance and improve living standards.
(i) Strategy 1
(ii) Strategy 2
Part C: Present evidence-based conclusions and reasoned arguments in an analytical response
5. Propose a course of action for the Maryville Government about strategies to manage the economy and improve living standards in a clear and cohesive analytical response.
Remember to use appropriate text structures and language features in your persuasive response. You want to convince the Maryville Government to implement your proposed course of action with a clear and cohesive argument and the use of persuasive subject-specific language, conventions and concepts.
Introduction
State the hypothesis
Propose a course of action for the government to manage the economy and improve living standards in Maryville.
Body paragraph 1
Describe Maryville’s cu
ent economic performance and living standards.
Body paragraph 2
Analyse and evaluate how government strategy 1 will manage the economy and improve living standards in Maryville using appropriate criteria.
Use evidence to support your conclusions.
Body paragraph 3
Analyse and evaluate how government strategy 2 will manage the economy and improve living standards in Maryville using appropriate criteria.
Use evidence to support your conclusions.
Conclusion
Restate the hypothesis.
Propose a course of action to the Maryville government.
Predict potential consequences of implementing the proposed course of action.
Year 10 Economics and Business: Unit 3 Managing economic performance and standard of living
Name:
Purpose of assessment: To conduct an inquiry and propose a course of action for a government about strategies to manage economic performance and improve living standards in an analytical response.
Q1, Q2, Q3 Q4, Q4, Q5.
Knowledge and understanding
Questioning and researching
Analysing and interpreting
Communicating
Explain why and how governments manage economic performance to improve living standards.
Give explanations for variations in economic performance and standards of living between economies.
Develop questions and formulate hypotheses to frame an investigation of an economic or business issue or event when researching.
Gather reliable data and information from different sources.
Analyse data and information to identify trends, explain relationships and make predictions.
Generate alternative responses to an issue.
Apply economics and business knowledge, skills and concepts to familiar, unfamiliar and complex hypothetical problems.
Develop and present evidence-based conclusions and reasoned arguments.
Use appropriate texts and subject-specific language, conventions and concepts.
Explains specific strategies for a government to manage a hypothetical economy and improve economic performance and living standards according to key indicators of economic performance.
Uses a clear, methodical process to gather, select and collate information as evidence to inform the investigation.
Predicts the potential consequences of the proposed action for a hypothetical economy’s economic performance and standard of living according to key indicators.
Justifies a viable course of action with supporting evidence.
Develops clear and cohesive analytical text using persuasive language to propose a course of action.
A
Explains the relationship between economic performance and living standards.
Refines hypotheses to frame the investigation.
Gathers data and information from a range of online, print and digital sources.
Generates a range of viable alternative responses to an issue.
Evaluates alternative responses to make a decision about a proposed course of action.
Integrates evidence and reasoned arguments into analytical response.
Uses relevant subject-specific language, economic and business conventions and texts appropriately.
B
Explains why and how governments manage economic performance to improve living standards.
Gives explanations for variations