Review of Economic Theory and Practice unit standards

FIELD SOCIAL SCIENCES

Review of Economic Theory and Practice unit standards

Subfield	Domain	Id
Economic Theory and Practice	Macro Economics	8417-8426, 11052-11056
	Managerial Economics	8428-8434
	Micro Economics	8409-8416, 8427, 11046-11051

The NZQA National Qualifications Services has completed the review of the unit standards listed above.

Date new versions published October 2009

Planned review date December 2015

Summary of review and consultation process

NZQA National Qualifications Services reviewed Levels 4 and above unit standards in subfield Economic Theory and Practice in June and July 2009. The standards had moderate to low usage between 2004 and 2009, with particularly low usage for standards in domain Managerial Economics.

A review panel, comprised of representatives from the Polytechnic and Private Training Establishment (PTE) sectors, was convened to review the standards. The panel found that the main issues which needed addressing concerned duplication of outcomes between different standards at levels 4, 5, and 6 and currency of the economics terminology and concepts used in the standards.

Consultation with providers and industry in August 2009 raised no objections to the outcomes of this review.

Main changes resulting from the review

· Expiry of domain Managerial Economics and all standards therein.

· Expiry of standards 8425, 8426, and 11052-11056 in domain Macro Economics.

· Expiry of standards 8409, 8411, 8427, and 11046-11051 in domain Micro Economics.

· Replacement of standard 8410 with new standards 26010 and 26011.

· Replacement of standards 8412, 8413, and 8414 with new standard 26012.

· Titles and credits were updated.

Unit standards categorised as category C or D expire at the end of December 2012.

Impact on existing provider accreditations

Current Accreditation for			Accreditation extended to
Nature of accreditation	Classification or Id	Level	Nature of accreditation	Id	Level
Field	Social Sciences	4	Id	26012	5
Subfield	Economic Theory and Practice	4	Id	26012	5
Domain	Micro Economics	4	Id	26012	5
Standard	8413	5	Standard	26012	5
Standard	8410	5	Standards	26010, 26011	5

Impact on Accreditation and Moderation Action Plan (AMAP)

AMAP 116 and AMAP 226 have been updated to reflect the changes made to the standards.

Impact on existing qualifications

Qualifications that contain the reviewed standards or classifications are tabled below.

Affected

The qualification lists a reviewed classification (domain or subfield) in an elective set

The qualification lists a standard that has changes to level or credits

The qualification lists a C or D category standard

Not materially affected

The qualification lists a standard that has a new title

The qualification lists a standard that has a new classification

The following NZQA National Qualifications Services qualifications are affected by the outcome of this review and will be revised/reviewed in 2010 and 2012.

Qualification title	Classification or standard in the qualification
National Diploma in Marketing [Ref: 0424]	Managerial Economics
National Diploma in Business (Level 5) with optional strands in Accounting, Finance, Finance - Māori, Health and Safety Management, Human Resource Management, Māori Business and Management, Marketing, People Development and Coordination, Project Management [Ref: 1498]	Managerial Economics
National Diploma in Business (Level 6) [Ref: 1499]	Managerial Economics

The following qualifications are also affected by the outcome of this review. The standard setting bodies (SSBs) have been advised that they require revision.

Qualification title	Classification or standard in the qualification	SSB Name
National Diploma in Contact Centre Management [Ref: 0974]	Economic Theory and Practice	ElectroTechnology Industry Training Organisation

Review Categories and changes to classification, title, level, and credits

All changes are in bold.

Key to review category
A	Dates changed, but no other changes are made - the new version of the standard carries the same Id and a new version number
B	Changes made, but the overall outcome remains the same - the new version of the standard carries the same Id and a new version number
C	Major changes that necessitate the registration of a replacement standard with a new Id
D	Standard will expire and not be replaced

Subfield Economic Theory and Practice

Domain Macro Economics

Id	Title	Level	Credit	Review Category
8417	Investigate National Income determination using the income-expenditure model Demonstrate knowledge of National Income determination	5	2	B
8418	Investigate macroeconomic activity using the aggregate demand and aggregate supply model Investigate macroeconomic activity using the aggregate demand/aggregate supply model	5	3	B
8419	Demonstrate knowledge of fiscal policy and evaluate its effectiveness	5	2 3	B
8420	Demonstrate knowledge of monetary policy and evaluate its effectiveness	5	2 3	B
8421	Investigate the causes and discuss the consequences of economic instability	5	2	B
8422	Investigate the causes and discuss the consequences of exchange rate movements Investigate the causes and discuss the consequences of exchange rate movement	5	2	B
8423	Explain and evaluate arguments for and against free trade and trade restrictions	5	2	B
8424	Examine a contemporary economic issue	5	2	B
8425	Investigate and evaluate a contemporary economic debate	4	3	D
8426	Investigate the economic validity, reliability, and economic significance of selected statistics	4	3	D
11052	Investigate equilibrium and disequilibrium in the markets for goods and money using the IS-LM model	6	3	D
11053	Investigate theories of aggregate supply	6	3	D
11054	Investigate the role of economic stabilisation policy	6	3	D
11055	Investigate the open economy in the short run	6	4	D
11056	Investigate the nature and causes of unemployment and associated economic policy	6	3	D

Subfield Economic Theory and Practice

Domain Managerial Economics

Id	Title	Level	Credit	Review Category
8428	Calculate, compare, and evaluate business decisions under risk and uncertainty using econometrics	6	2	D
8429	Estimate a demand function and assess its reliability using econometric techniques	6	3	D
8430	Investigate and apply demand forecasting models	6	2	D
8431	Derive demand, marginal revenue and cost curves and estimate optimal price and output levels	6	2	D
8432	Investigate and apply pricing models in oligopoly and monopoly markets	6	4	D
8433	Investigate and apply price bidding techniques for competitive bid markets	6	2	D
8434	Investigate issues in public sector and environmental management using economic concepts	6	3	D

Subfield Economic Theory and Practice

Domain Micro Economics

Id	Title	Level	Credit	Review Category
8409	Investigate the concepts of production and specialisation using economic principles	4	2	D
8410 26010 26011	Analyse economic events using the demand and supply model and elasticity Analyse economic events using the demand and supply model Apply elasticity concepts to the demand and supply model	5 5 5	2 2 2	C New New
8411	Investigate and analyse consumer behaviour and consumer surplus using economic principles	5	2	D
8412 8413 8414 26012	Analyse and explain short-run and long-run costs of production using economic principles Analyse and compare the behaviour and performance of firms under perfect competition and monopoly Analyse and describe the behaviour of firms operating under monopolistic competition and oligopoly Analyse the behaviour and performance of firms in different market structures	4 5 5 5	2 2 2 6	C C C New
8415	Analyse and explain the pricing and allocation of factors of production using economic principles	5	2	B
8416	Investigate market failure and evaluate corrective mechanisms	5	2	B
8427	Investigate the development, structure, production economics, and market behaviour of an industry	4	4	D
11046	Investigate, evaluate, and apply theories of consumer choice using microeconomic principles	6	3	D
11047	Investigate the firm and the theory of production using microeconomic principles	6	3	D
11048	Investigate models of market structure using microeconomic principles	6	3	D
11049	Investigate the pricing of factors of production using microeconomic principles	6	3	D
11050	Investigate the slope and application of general Equilibrium Theory	6	3	D
11051	Investigate issues in welfare economics	6	3	D