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NamWahCatholicSecondary School

Work Scheme

Subject: Economics Form: S.7A Year: 09-10Prepared By: Wong Hung Lurk Panel Chairperson’s Name: Wong Hung Lurk

◎Extended topics and the rests are core topics

Cycle
Week / Date / Teaching Progress
(Chapters/Topics) / Teaching Aims / Objectives / Teaching Aids / Tools / Homework / Test /Assessment / Four Key Areas / 9 Generic Skills / Learning with the use of IT /
Remarks
1 / 2-9-09
to
15-9-09 /
  1. SIMPLE KEYNESIAN MODEL
  1. The meaning of equilibrium
  1. Consumption function and saving function
  1. Investment function
  1. Two sectors model
  1. Three sectors model
i/Government spending and taxation.
ii/Deflationary gap and Inflationary gap.
iii/Fiscal policy
iv/Balanced-budget multiplier
v/Automatic built-in stabilizers
vi/The concept of the efficiency in
taxation.
  1. Import and export function.
  2. Ex-post versus ex-ante investment.
  1. Paradox of thrift.
  1. More about consumption and investment.
/ Students are able todefine equilibrium as no tendency to change
  1. Students can state
C = a + bYd
  1. Students can state the meaning of autonomous consumption and induced consumption
  2. Students can define APC and MPC
  3. Students can derive the saving function from the given consumption function
  4. Students can state the relationship between APC and APS, and that of MPC and MPS
  1. Students can state I = I* + iY
  2. Students can state the meaning of autonomous investment and induced investment
Students can determine the equilibrium income level by Y=AE or I=S
  1. G=G* ; T = T* or T= T0 + tYd
  2. Students can explain the effect of change in G and change in T on Y
  3. Students can define and calculate government multiplier
Students can define potential Y and hence definedeflationary gap and inflationary gap.
Students can state the policy tools of fiscal policy
  1. students can derive balanced-budget multiplier
  2. if both G and T increase by the same amount, students can state the effect on Y is expansionary and vice versa
  1. students can state the principle of built-in-stabilizers and give example
  2. students can state which one can create disincentive
Students can state the concept of the efficiency in taxation in the context of minimum excess burden◎
M = M* + mYd ; X = X*
  1. students can state the relationship between the planned investment and realized investment
  2. students can reconcile Sr Ip + Iup with the situation where equilibrium is achieved when Sp = Ip
Students can state under what circumstance will the Y decrease if all people save more.
Students can explain the determinants of consumption and investment. / (1)textbook
(2)past paper
(3)worksheet
(4)computer and projector
(5)chalk and blackboard
(6)teaching CD-ROM / (1) worksheet (5)
(2) essay (2)
(3) test (2)
(4) interactive group
discussion / Learning from reading:
Encourage students to borrow books with the topic of simple Keynesian model from library
Critical Thinking Skills, Collaboration skills and
Communication skills
To induce the students to discover the limitation of the simple Keynesian model by group discussion. / (1) powerpoint
- business cycles
- a graphical
approach to
income
determination
- autonomous
change in AE
and multiplier
- balanced
budget multiplier
- a four sector
national income
model
(2) surfing the
following website
with students
2 / 21-9-09
to
5-10-09 /
  1. MONEY AND BANKING
  1. Problems of the barter system.
  1. Functions of money.
  1. Properties of money.
  1. Money supply.
i)Definition of money supply
ii)Credit creation : The process and its limitations.
iii)Quantity theoryof money.
  1. Money demand.
i)Classical View: quantity theory
ii)Keynesian view:
3 motives
iii)New approach: transaction andasset demand
iv)Liquidity trap
v)Demand curve of money.
  1. Monetary policy
i)Definition
ii)Tools
iii)Effectiveness
  1. Equilibrium in the money market.
/
  1. students can explain the difficulty of engaging in exchange in the barter economy
  2. students can explain how the emergency of money as a medium of exchange solve the about problems.
Students can explain the 4 functions of money
Students can explain the properties of money
M1, M2 and M3; Monetary base
  1. students can explain the process of credit creation and contraction
  2. students can explain why the credit creation cannot reach the maximum if banks hold excess reserve or cash drain exist
  3. students can calculate the banking multiplier with excess reserve ratio and cash drain ratio◎
Students can state 3 versions of QTM
Cambridge version of QTM
Students can explain the 3 motives of holding money
Md = MT + MA
Students can explain the existence of the liquidity trap and the shape of money demand curve with liquidity trap
Students can derive the money demand curve from MT and MA
Students can explain the policy tools of monetary policy
Students can explain the effectiveness of monetary policy with respect to the interest elasticity of money demand
Md = Ms; students can determine the equilibrium r and hence explain the effect of change in money supply to the interest rate / (1) textbook
(2) past paper
(3) worksheet
(4) computer and
projector
(5) chalk and
blackboard
(6) teaching CD-
ROM / (1) worksheet (2)
(2) essay (1)
(3) test (1)
(4) interactive group
discussion / Learning from reading:
Encourage students to read newspaper or to surf for internet regarding China’s macroeconomic controls
Critical Thinking Skills, Collaboration skills and
Communication skills
Let the students to discuss the effect of macroeconomic controls on the China’s economy. / (1) powerpoint
- the definition of
money
- a new approach
to the demand
for money
- liquidity trap
- equilibrium in the
money market
(2) surfing the
following website
with students
3-4 / 6-10-09
to
3-11-09 / 3.IS-LM MODEL
  1. Derivation of IS and LM curve
b. Disequilibrium
i)in goods market
ii)in money market
  1. General equilibrium
  1. Shift in the IS and LM curve
  2. The slope of the IS and LM curve
  1. Fiscal policy (The crowding out effect is included)
  1. Monetary policy
Effectiveness of fiscal and monetary policy
  1. Public debt
/
  1. Students can define IS and LM from the equilibrium condition of goods market and money market respectively
  2. Students can derive IS and LM from the given data
Students can point out and explain the given combination of r and Y is disequilibrium in goods market, money market or both.
Students can find out the equilibrium r and Y
  1. from the diagram
  2. from the IS and LM equations
Students can explain the factors affecting the slope of IS and LM
  1. Students can explain the effect of carrying out fiscal policy on r and Y by using IS-LM model
  1. Students can explain the effect of change in G is lesser on Y when compare with the simple keynesian model
  2. Students can calculate the change in income as a result of change in G or T
  1. Students can explain the effect of carrying out monetary policy on r and Y by using IS-LM model
  2. Students can calculate the change in income as a result of change in money supply
Students can explain the effectiveness of fiscal and monetary policy by the slope of IS and LM and hence the interest and income elasticity◎
Students can explain whether the issue of public debt create burden on future generation / (1) textbook
(2) past paper
(3) worksheet
(4) computer and
projector
(5) chalk and
blackboard
(6) teaching CD-
ROM / (1) worksheet (4)
(2) essay (1)
(3) test (1)
(4) interactive group
discussion / (1) powerpoint
- the construction
of the IS curve
- the construction
of the LM curve
- disequilibrium in
the goods market
- disequilibrium in
the money market
- the slope of the
IS curve
- the slope of the
LM curve
- monetary policy
- effectiveness in
the fiscal and
monetary policies
- four extreme cases
- the IS-LM
multiplier
- the crowding
out effect
(2) surfing the
following website
with students
5
6
7 / 4-11-09
to
18-11-09
19-11-09
to
2-12-09
3-12-09
to
8-12-09 / 4. INFLATION
  1. Definition
  1. Measurement
  1. The causes of inflation
  1. Real rate of interest and inflationary expectation
  1. Consequence of inflation
i)
Redistribution effect
ii)Taxation without legistation
iii)
Transaction cost
5.
UNEMPLOYMENT
a.Voluntary and Involuntary unemployment
b.Causes of unemployment
c.Costs of unemployment
d.Cures for unemployment
Revision / Students can define inflation with respect to
  1. increase in general price level instead of the increase in price of particular goods
  2. continuous increase instead of once and for all increase
  1. students can calculate the inflation rate
  2. students can compare the strength and weakness of consumer price index and implicit GDP deflator
Students can explain inflation is money phenomenon
Students can explain the relationship between real rate of interest, nominal rate of interest and
inflationary expectation by fisher’ s equation.
Students can explain the redistribution effect by using fisher’s equation
Students can explain inflation tax with respect tothe transfer of wealth from cash holder to the government resulting from printing more money
Students can explain inflation create uncertainly and hence increase transaction cost◎
Students can define voluntary and involuntary unemployment
Students can explain various causes of unemployment
Students can explain social and economic cost of unemployment
Students can define natural rates of unemployment / (1) textbook
(2) past paper
(3) worksheet
(4) computer and
projector
(5) chalk and
blackboard
(6) teaching CD-
ROM / (1) worksheet (1)
(2) essay (1)
(3) test (1)
(4) interactive group
discussion / (1) powerpoint
- the causes of
inflation
- redistribution
effect
(2) surfing the
following website
with students
10-12-09
to
18-12-09 / First Term Examination
22-12-09
to
3-1-10 / Christmas and New Year Holidays
7 / 4-1-10
to
11-1-10 / e.Search theory
1.Search unemployment and the natural rates of unemployment
2.Search process
3.Search flow, search duration and unemployment rate
4.Marginal benefit and marginal cost of search.
f.Trade off between inflation and unemployment (SR and LR philip curve)
Appendix1:
Unemployment maynot be wasteful
Appendix2:
The natural rate of unemploymentis not immutable / Student can calculate search flow and search duration and hence get the figure of unemployment rate
Student can explain the effect of change in MC or MB of search on the unemployment rate
Student can explain the trade off relationship
in SR as money illusion is temporary◎ / (1) powerpoint
- search process
- Philip curve
(2) surfing the
following website
with students
8 / 12-1-10
to
26-1-10 / 6. INTERNATIONAL TRADE
  1. FREE TRADE
  1. Brief revision of the reason for trade between individuals
  1. The model of absolute advantage
  1. The model of comparative advantage
  1. The terms of trade and the distribution of the gains from trade
  1. The trade models with increasing cost of produciton
i)MUV-MC approach
ii)Indifference curve approach
(i.e. Separation Theorem)
  1. PROTECTIONISM VERSUS FREE TRADE
  1. The meaning of protectionism
  2. The forms of trade restriction
  3. Economic effects of a tariff
  1. Economic effects of a quota
(1)Tariff versus quota
(2)Argument for and against protectionism /
  1. Students can state which country has the absolute advantage of producing particular goods
  2. Students can illustrate absolute advantage by using PPC
  1. Students can state which country has the comparative advantage of producing particular goods (especially when factor cost data are given)
  2. Students can illustrate comparative advantage, before trade and after trade situation by using PPC
Students can illustrate how free trade is carried on by using MUV-MC approach and Indifference curve approach
Students can explain various form of trade restriction
Students can illustrate the effect of tariff on various parties by using diagram
Students can illustrate the effect of quota on various parties by using diagram
Students can explain the difference between the effect of quota and tariff ◎ / (1) textbook
(2) past paper
(3) worksheet
(4) computer and
projector
(5) chalk and
blackboard
(6) teaching CD-
ROM / (1) worksheet (3)
(2) essay (1)
(3) test (1)
(4) interactive group
discussion / (1) powerpoint
- comparative
advantage
- PPC and price
line
- MUV approach
- tariff and quota
(2) surfing the
following website
with students
9-10 / 27-1-10
to
4-2-10 / 7.
INTERNATIONAL FINANCE
  1. Balance of trade
  1. Balance of payment (BOP)
i)Definition
ii)Components
iii)Double entry book-keeping
  1. Exchange rate system
i)The exchange rate
ii)Demand and supply of foreign currency
iii)Floating exchange rate system
iv)Fixed exchange rate system
v)Linked exchange rate system
vi)Factors affecting the exchange rate
vii)The Marshall Lerner condition
viii)BOP adjustment
ix)Other measures of correcting BOP imbalance
x)Fixed exchange rate versus floating exchange rate system
Appendix :
Brief history of the international Monetary
and exchange rate system / Students can explain the factors affecting the balance of trade
  1. students can explain how each component of BOP is affected with given data
  2. students can explain the factor affecting BOP
Students can define exchange rate and explain the meaning of the change in exchange rate
  1. students can explain the demand for foreign currency is derived from import and capital outflow
  2. students can explain the supply of foreign currency is derived from export and capital inflow
Students can give a brief discussion of fixed rates, flexible rates, and the Hong Kong linked rate
Students can explain the long-run and short-run factors affecting the exchange rate
Students can explain how the balance of trade is affected with the change in exchange rate
Students can explain the automatic adjustment mechanism under fixed and flexible rates
Students can explain the other measures of correcting BOP imbalance◎
Students can explain the difference between the fixed rates and flexible rates◎ / (1) textbook
(2) past paper
(3) worksheet
(4) computer and
projector
(5) chalk and
blackboard
(6) teaching CD-
ROM / (1) worksheet (3)
(2) essay (1)
(3) test (1)
(4) interactive group
discussion / (1) powerpoint
- BOP
- demand for and
supply of foreign
currency
- BOP
disequilibrium
under fixed
exchange rate
system
- BOP
disequilibrium
under flexible
exchange rate
system
(2) surfing the
following website
with students
5-2-10
to
25-2-10 / Mock Examination and Lunar New Year Holidays