HSC Economics explores the operation of Australian and global economies, including real-world events, historical trends, and key economic concepts such as interest rates, employment, and market fluctuations. This subject develops analytical and problem-solving skills, making it highly relevant for students interested in many avenues post-school, as well as in decision-making in daily life.
Content
The Preliminary course introduces key economic theories and their application to the Australian economy. It covers practical issues affecting individuals, businesses, and governments, with topics including:
- Introduction to Economics: The focus of this topic is the economic problem - the challenge of meeting unlimited wants with limited resources - and how the choices made by individuals, businesses and governments shape the nature and operation of the economy.
- Consumers and Business: Investigates the decision-making processes of consumers and businesses and their roles in the production process.
- Markets: Examines the operation of markets; how prices are determined through supply and demand, types of market structures, and the role of government intervention in cases of market failure.
- Labour Markets: Focuses on employment trends, labour supply and demand, and the role of institutions in shaping workforce outcomes.
- Financial Markets: Covers the role of financial markets, including the share market, interest rates, and the Reserve Bank of Australia's role in monetary policy, and the effect of these institutions on the economy.
- Government in the Economy: Analyses government intervention in Australia’s mixed economy, including fiscal and monetary policies used to manage economic issues.
Following this, the HSC course has 4 topics:
The HSC course builds on preliminary concepts and applies them to the national, regional, and global economies. The topics include:
- Topic 1 The Global Economy: Examines globalisation, trade policies, and the impact of international economic trends on different nations. Students research case studies to analyse how globalisation affects economies worldwide.
- Topic 2 Australia’s Place in the Global Economy: Focuses on Australia’s trade, financial relationships, and how international economic changes influence domestic economic indicators. This topic is highly focused on real-world and current events, including understanding how changes in political, environmental, economic and social trends worldwide can impact domestic markets.
- Topic 3 Economic Issues: Students investigate key economic indicators such as economic growth, unemployment, inflation, income distribution, and environmental sustainability, that are used to judge the well-being of an economy, and the conflicts between them.
- Topic 4 Economic Policies and Management: Explores the role of government policies - both macroeconomic and microeconomic - in managing economic performance and addressing issues.
Read more about the economics course on the NESA website here.
Assessments & HSC Exam
Until the trial exams, schools set their own assessments, which may include research tasks, exams, and essays. The final HSC exam consists of:
- Section 1: 20 multiple-choice questions testing fundamental concepts.
- Section 2: 40 marks worth of short-answer questions requiring precise application of theory.
- Sections 3 & 4: Two 20-mark extended responses (one stimulus-based and one non-stimulus-based) questions assessing analytical and evaluative skills.
Why Choose Economics?
You should pick this subject if…
You want to understand how the world works.
Economics is a constantly evolving subject that helps students grasp how real-world events shape financial and social systems. Students develop a comprehensive understanding of market dynamics, government policies, and consumer behaviour, making it a very rewarding subject for those curious about the operation of the economy in everyday life.
You Have Strong Communication Skills.
Economics requires proficiency in multiple forms of communication, including multiple-choice, short-answer, and extended-response questions. While the writing style in economics differs significantly from subjects like English, clarity and structured argumentation in your writing are essential.
You Are Willing to Conduct Independent Research.
Due to the constantly changing nature of economics, students have the perfect platform to excel by staying informed about evolving trends, policies, and real-world applications. Those who enjoy exploring case studies, analysing current events, and conducting independent research will find this course particularly engaging and rewarding.
Tips and Tricks to Excel
Stay Updated with Current Events
The first and probably most important tip is to engage with economics beyond the classroom. Staying updated by reading reputable news sources like The Economist and the Australian Financial Review, listening to economic podcasts, and following policy discussions will help you connect theoretical concepts to real-world applications. Exposure to professional economic writing will also improve your analytical skills and ability to construct arguments effectively.
Stay on Top of the Content
Economics is a content-heavy subject with numerous theories, models, and examples, and simply memorising them won’t allow you to produce the best responses. Instead of cramming the night before, aim for steady, consistent study—keep up with your notes, tackle homework regularly, and revise as you go. By exam time, you’ll be focusing on applying your knowledge rather than scrambling to remember it all.
And on that note, one of the most important tips…
Practice, Practice, Practice!
Mastering economics exams requires more than just knowing the content - you need to be able to communicate your ideas clearly. Answering past paper questions, practising different essay structures, and seeking feedback will refine your exam technique and ensure you can effectively apply your knowledge under timed conditions.
For more tips on how to study, visit this blog by a 99+ ATAR tutor.
Manoj Arachige
FAQs
Is HSC Economics Hard?
Yes, economics is a challenging subject due to its complex theories and content-heavy nature. However, breaking the material into manageable sections, seeking clarification from teachers and tutors, and actively engaging with real-world examples can make the course more approachable.
Does HSC Economics Scale Well?
Whilst it is not the most important factor in choosing a subject, economics is one of the highest-scaling humanities subjects, meaning that strong performance can significantly boost your ATAR. However, this is reflective of the subject’s difficulty - students must put in consistent effort to achieve top marks.
Will HSC Economics help me in University or in getting a job?
Absolutely! Economics has broad real-world applications, from understanding consumer behaviour and government policies to making informed financial decisions. The analytical, problem-solving, and communication skills developed in this course are valuable in many careers, including business, finance, law, and public policy. Even outside professional settings, economic literacy can influence personal financial decisions, investments, and even voting choices.
Final Thoughts
Economics is a highly rewarding subject for those willing to put in the effort. It provides students with the knowledge and skills to analyse the world around them, making it an excellent choice for anyone interested in real-world applications, critical thinking, and problem-solving.
Manoj Arachige
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