They investigate at least one behavioural economics experiment, and analyse how the theories and observations of behavioural economics have been used by government in planning and implementing policy, and by businesses in managing their relationships with consumers.
Students consider the insights of behavioural economics and how those insights contrast with the traditional model of consumer behaviour. Through close examination of one or more markets, they gain insight into the factors that may affect the way resources are allocated in an economy and how market power can affect efficiency and living standards. Students use demand and supply models to explain changes in prices and quantities traded. Students are encouraged to investigate contemporary examples and case studies to enhance their understanding of the introductory economics concepts. They examine how individuals might respond to incentives. They examine basic economic models where consumers and businesses engage in mutually beneficial transactions, and investigate the motivations behind both consumer and business behaviour. Students are introduced to and explore fundamental economic concepts.
In this unit students explore their role in the economy, how they interact with businesses, and the role of the government in the economy. Economics is a dynamic and constantly evolving field of social science, which looks at the way humans behave and the decisions made to meet the needs and wants of society.
