Analysing Current Economic Issues, Grade 12, University Preparation (CIA4U)

Course Description

This course explores the choices that individuals and societies make about the use of resources in a competitive global economy. Students will use economic concepts and models, as well as methods of economic inquiry to analyse current economic issues and make informed economic choices based on their analysis.

Unit 1	Applying Theories of Economic Choice to Maximize the Welfare of a Nation and its Citizens	20 hours
Unit 2	Economic Institutions: Changes Needed to Ensure Economic Prosperity in the Twenty-First Century	15 hours
Unit 3	The Validity of Economic Measures of Performance	20 hours
Unit 4	Economics and Politics: The Role of Government in the Economy	20 hours
Unit 5	Freer International Trade: Incentive, Costs and Benefits	15 hours
* Unit 6	Economic Conflict: Balancing the Interests of Economic Stakeholders	20 hours

Unit 1: Applying Theories of Economic Choice to Maximize
the Welfare of a Nation and its Citizens

Time: 20 hours

Unit Description

What type of economic system best allocates resources to maximize national wealth? How can a nation’s resources be allocated individually and collectively to best meet the needs and desires of its citizens? Students explore responses to these two central questions by applying fundamental economic concepts to the study of an economics issue dealing with welfare economics.

Through the use of problem-set type questions, students demonstrate an understanding of key economic concepts such as indifference curves, production possibility frontiers, and budget lines. The application of these concepts in the context of welfare economics allows students to use marginal analysis to explain how consumers, producers, and governments make important economic choices to satisfy the interests of individual stakeholders and the interests of a nation as a whole.

Using application questions, students also evaluate how the quality and quantity of consumer information, among other factors, can impact on a consumer’s optimal choice by having them apply the theories of supply and demand to determine the overall effect on equilibrium achieved in a market.

Many of these concepts are reinforced through a seminar on Adam Smith, modelled by the teacher and summarizing Smith’s ideas and theories in the context of welfare economics.
This seminar also serves as a lead into the study of the component parts of economic theories in which students compare and contrast models of economic theory with those of the pure sciences. Through this comparison, students identify the concepts of “normative” and “positive” economics and then apply them to an evaluation of whether a current trend like globalization effectively satisfies the often conflicting goals of freedom and equity.

This provides yet another opportunity for students to practise the application of welfare economics theories. To prepare students for the unit’s culminating activity, they are introduced to the concept of an economic spectrum, and in pairs, present a current or historical case study representative of one of the positions on this spectrum.

This presentation focuses on defending the case study they chose as an accurate representation of one of the positions on the spectrum. As well, consistent with the structure of the Adam Smith seminar, the first pair of students presents a seminar on Karl Marx. This also serves to support the students in the completion of the unit culminating activity.