Nam Wah Catholic Secondary School

Nam Wah Catholic Secondary School 1 Work Scheme

Subject: Economics Form: S.7A Year: 07-08 Prepared By: Wong Hung Lurk Panel Chairperson’s Name: Wong Hung Lurk ◎Extended topics and the rests are core topics Week Date Teaching Progress Teaching Aims / Teaching Aids / Homework / Test Four Key Areas / 9 Learning with the use of IT (Chapters/Topics) Objectives Tools /Assessment Generic Skills / Remarks 1-3 4-9-07 A. SIMPLE (1) textbook (1) worksheet (5) Learning from reading: (1) powerpoint to KEYNESIAN (2) past paper (2) essay (2) Encourage students to - business cycles 21-9-07 MODEL (3) worksheet (3) test (2) borrow books with the - a graphical a. The Students are able (4) computer (4) interactive group topic of simple Keynesian approach to meaning of to define and projector discussion model from library income equilibrium equilibrium as no (5) chalk and determination tendency to blackboard Critical Thinking Skills, - autonomous change (6) teaching CD- Collaboration skills and change in AE ROM Communication skills and multiplier b. Consu a. Students can To induce the students to - balanced mption state discover the limitation of budget multiplier function and C = a + bY d the simple Keynesian - a four sector saving b. Students can model by group national income function state the discussion. model meaning of autonomous (2) surfing the consumption following website and induced with students consumption www.myeconlab.com/abel c. Students can define APC Nam Wah Catholic Secondary School 2 Work Scheme

and MPC d. Students can derive the saving function from the given consumption function e. Students can state the relationship between APC and APS, and that of MPC and MPS

a. Students can

state I = I * + iY c. Invest b. Students can ment state the function meaning of autonomous investment and induced Nam Wah Catholic Secondary School 3 Work Scheme

investment Students can determine the equilibrium income level by d. Two Y=AE or I=S sectors

model a . G=G * ; T =

T * or T= T 0 +

b . Students can explain the e. Three effect of sectors change in G model and change in i/ Government T on Y

spending and c . Students can taxation. define and calculate government multiplier

Students can define potential Y and hence Nam Wah Catholic Secondary School 4 Work Scheme

define deflationary gap ii/Deflationary and inflationary gap and gap. Inflationary gap. Students can state the policy tools of fiscal policy iii/Fiscal policy a. students can derive balanced- budget multiplier iv/Balanced- b. if both G and budget T increase by multiplier the same amount, students can state the effect on Y is expansionary and vice Nam Wah Catholic Secondary School 5 Work Scheme

versa a. students can state the principle of built-in- stabilizers and give v/Automatic example built-in b. students can stabilizers state which one can create disincentive

Students can state the concept of the efficiency in taxation in the context of vi/ The concept minimum excess of the burden◎ efficiency in

taxation. M = M * + mY d ;

X = X * Nam Wah Catholic Secondary School 6 Work Scheme

a. students can state the relationship f. Import between the and export planned function. investment g. Ex- and realized post versus investment ex-ante b. students can

investment. reconcile S r 

I p + I u p 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. Nam Wah Catholic Secondary School 7 Work Scheme

h. Parado Students can explain x of thrift. the determinants of consumption and investment.

i. More about consumption and investment.

4 –7 24 -9-07 1. MONEY (1) textbook (1) worksheet (2) Learning from reading: (1) powerpoint to AND (2) past paper (2) essay (1) Encourage students to - the definition of 18-10-07 BANKING (3) worksheet (3) test (1) read newspaper or to surf money (4) computer and (4) interactive group for internet regarding - a new approach a. Proble a. students can projector discussion China’s macroeconomic to the demand ms of the explain the (5) chalk and controls for money barter difficulty of blackboard - liquidity trap system. engaging in (6) teaching CD- Critical Thinking Skills, - equilibrium in the exchange in ROM Collaboration skills and money market the barter Communication skills (2) surfing the economy Let the students to discuss following website b. students can Nam Wah Catholic Secondary School 8 Work Scheme

explain how the effect of with students b. Functi the macroeconomic controls www.myeconlab.com/abel ons of emergency of on the China’s economy. money. money as a medium of c. Proper exchange ties of solve the money. about problems.

Students can d. Money explain the 4 supply. functions of money i) Defi nition of Students can money explain the supply properties of money

M1, M2 and M3; Monetary base a. students can Nam Wah Catholic Secondary School 9 Work Scheme

explain the process of credit creation and ii) Cre contraction dit creation : b. students can The process explain why and its the credit limitations. creation cannot reach the maximum if banks hold excess reserve or cash drain exist c. students can calculate the banking multiplier with excess reserve ratio and cash drain ratio◎ Nam Wah Catholic Secondary School 10 Work Scheme

Students can state 3 versions of QTM

iii) Qua Cambridge ntity theory version of QTM of money. e. Money demand. Students can i) Cl explain the 3 assical View: motives of quantity holding money

theory Md = M T + M A ii) K eynesian view: 3 motives Students can iii) N explain the ew approach: existence of the transaction liquidity trap and asset and the shape of demand money demand iv) Li curve with quidity trap liquidity trap Nam Wah Catholic Secondary School 11 Work Scheme

Students can derive the money demand

curve from M T

and M A

v) D Students can emand curve explain the of money. policy tools of monetary policy Students can f. Monet explain the ary policy effectiveness of i) D monetary policy efinition with respect to ii) T the interest ools elasticity of money demand

M d = M s ; iii) Ef students can fectiveness determine the equilibrium r and hence explain the Nam Wah Catholic Secondary School 12 Work Scheme

effect of change in money supply to the interest rate

g. Equili brium in the money market.

8-11 22-10-07 3.IS-LM (1) textbook (1) worksheet (4) (1) powerpoint to MODEL (2) past paper (2) essay (1) - the construction 16-11-07 a. Deriva a. Students can (3) worksheet (3) test (1) of the IS curve tion of IS define IS (4) computer and (4) interactive group - the construction and LM and LM from projector discussion of the LM curve curve the (5) chalk and - disequilibrium in equilibrium blackboard the goods market condition of (6) teaching CD- - disequilibrium in goods ROM the money market market and - the slope of the money IS curve market - the slope of the respectively LM curve b. Students can - monetary policy derive IS - effectiveness in and LM from Nam Wah Catholic Secondary School 13 Work Scheme

the given the fiscal and data monetary policies - four extreme cases - the IS-LM Students can multiplier b. point out and - the crowding Disequilibrium explain the given out effect i) in combination of r goods market and Y is ii) in disequilibrium in (2) surfing the money goods market, following website market money market or with students both. www.myeconlab.com/abel

Students can find out the equilibrium r and b. Gener Y al equilibrium a. from the diagram b. from the IS and LM equations

Nam Wah Catholic Secondary School 14 Work Scheme

Students can c. Shift explain the in the IS and factors affecting LM curve the slope of IS d. The and LM slope of the a. Students can IS and LM explain the curve effect of carrying out fiscal policy e. Fiscal on r and Y by policy (The using IS-LM crowding out model effect is included) b. Students can explain the effect of change in G is lesser on Y when compare with the simple Nam Wah Catholic Secondary School 15 Work Scheme

keynesian model c. Students can calculate the change in income as a result of change in G or T a. Students can explain the effect of carrying out monetary f. Monet policy on r ary policy and Y by using IS-LM model b. Students can calculate the change in income as a result of change in money supply Nam Wah Catholic Secondary School 16 Work Scheme

Students can explain the effectiveness of fiscal and monetary policy g. by the slope of Effectiveness of IS and LM and fiscal and hence the monetary policy interest and income elasticity◎ Students can explain whether the issue of public debt create burden on future h. Public generation debt

12-13 19-11-07 4. INFLATION (1) textbook (1) worksheet (1) (1) powerpoint to a. Defini Students can (2) past paper (2) essay (1) - the causes of 30-11-07 tion define inflation (3) worksheet (3) test (1) inflation with respect to (4) computer and (4) interactive group - redistribution a. increase in projector discussion effect general price Nam Wah Catholic Secondary School 17 Work Scheme

level instead (5) chalk and of the blackboard increase in (6) teaching CD- (2) surfing the price of ROM following website particular with students goods www.myeconlab.com/abel b. continuous increase instead of once and for all increase

a. students can calculate the b. Measu inflation rate rement b. students can compare the strength and weakness of consumer price index and implicit GDP deflator Students can explain Nam Wah Catholic Secondary School 18 Work Scheme

inflation is c. The money causes of phenomenon inflation Students can explain the relationship between real rate d. Real of interest, rate of nominal rate of interest and interest and inflationary inflationary expectation expectation by fisher’ s equation.

Students can explain the redistribution effect by using fisher’s equation e. Conse quence of Students can inflation explain inflation i) tax with respect Redistribution to the transfer of Nam Wah Catholic Secondary School 19 Work Scheme

effect wealth from cash holder to the ii) T government axation resulting from without printing more legistation money Students can explain inflation create uncertainly and hence increase transaction cost◎ iii) Transaction cost

14-15 3-12-07 to First Term Examination 11-12-07 15-16 12-12-07 5. (1) textbook (1) worksheet (1) to UNEMPLOYME Students can (2) past paper (2) essay (1) 20-12-07 NT define voluntary (3) worksheet (3) test (1) a.Voluntary and and involuntary (4) computer and (4) interactive group Involuntary unemployment projector discussion unemployment Students can (5) chalk and explain various Nam Wah Catholic Secondary School 20 Work Scheme

causes of blackboard b.Causes of unemployment (6) teaching CD- unemployment Students can ROM explain social and economic c.Costs of cost of unemployment unemployment

Students can define natural rates of d.Cures for unemployment unemployment

17-18 24-12-07 to Christmas and New Year Holidays 2-1-08 18-19 3-1-08 e.Search theory (1) powerpoint to - search process 10-1-08 1.Search - Philip curve unemployment and the natural (2) surfing the rates of following website unemployment with students www.myeconlab.com/abel Nam Wah Catholic Secondary School 21 Work Scheme

2.Search Student can process calculate search 3.Search flow, flow and search search duration and duration and hence get the unemploymen figure of t rate unemployment 4.Marginal rate benefit and marginal cost Student can of search. explain the effect of change in MC or MB of search on the unemployment rate

f.Trade off Student can between explain the trade inflation and off relationship unemploymen in SR as money t (SR and LR illusion is philip curve) temporary◎ Nam Wah Catholic Secondary School 22 Work Scheme

Appendix1: Unemployment may not be wasteful

Appendix 2: The natural rate of unemployment is not immutable

20 21-1-08 6. (1) textbook (1) worksheet (3) (1) powerpoint to INTERNATION (2) past paper (2) essay (1) - comparative 25-1-08 AL TRADE (3) worksheet (3) test (1) advantage I. FRE (4) computer and (4) interactive group - PPC and price E projector discussion line TRA (5) chalk and - MUV approach DE blackboard - tariff and quota a. B (6) teaching CD- r ROM i (2) surfing the e following website f with students Nam Wah Catholic Secondary School 23 Work Scheme

www.myeconlab.com/abel r a. Students can e state which v country has i the absolute s advantage of i producing o particular n goods b. Students can o illustrate f absolute advantage by t using PPC h a. Students can e state which country has r the e comparative a advantage of s producing o particular n goods (especially f when factor Nam Wah Catholic Secondary School 24 Work Scheme o cost data are r given) b. Students can t illustrate r comparative a advantage, d before trade e and after trade b situation by e using PPC t w e e n i Students can nillustrate how dfree trade is icarried on by vusing MUV-MC iapproach and dIndifference ucurve approach Nam Wah Catholic Secondary School 25 Work Scheme

b. T h e

m o Students can dexplain various eform of trade lrestriction Students can oillustrate the feffect of tariff on various parties aby using diagram b s o l uStudents can tillustrate the Nam Wah Catholic Secondary School 26 Work Scheme

eeffect of quota on various aparties by using ddiagram v Students can aexplain the ndifference tbetween the aeffect of quota gand tariff ◎ e

c. T h e Nam Wah Catholic Secondary School 27 Work Scheme

m o d e l o f c o m p a r a t i v e a d v Nam Wah Catholic Secondary School 28 Work Scheme

a n t a g e

d. T h e

t e r m s

o f Nam Wah Catholic Secondary School 29 Work Scheme

t r a d e a n d t h e d i s t r i b u t i Nam Wah Catholic Secondary School 30 Work Scheme o n o f t h e g a i n s f r o m t r a d Nam Wah Catholic Secondary School 31 Work Scheme

e. T h e

t r a d e

m o d e l s

w i t Nam Wah Catholic Secondary School 32 Work Scheme h i n c r e a s i n g c o s t o f p r o d Nam Wah Catholic Secondary School 33 Work Scheme

u c i t o n i ) M

i i ) I

(i.e. Separation Theorem)

II. PRO TEC TIO NIS M VER SUS Nam Wah Catholic Secondary School 34 Work Scheme

FRE E TRA DE a. T h e

m e a n i n g

p r o t e c Nam Wah Catholic Secondary School 35 Work Scheme

t i o n i s m b. T h e

f o r m s

t r a d e Nam Wah Catholic Secondary School 36 Work Scheme

r e s t r i c t i o n c. E c o n o m i c

e f f e Nam Wah Catholic Secondary School 37 Work Scheme

t a r i f f d. E c o n o m i c Nam Wah Catholic Secondary School 38 Work Scheme

e f f e c t s

q u o t a (1) Tariff versus quota (2) Argume nt for and Nam Wah Catholic Secondary School 39 Work Scheme

against protectio nism

21-23 21-1-08 7. (1) textbook (1) worksheet (3) (1) powerpoint to INTERNATIONAL (2) past paper (2) essay (1) - BOP 4-2-08 FINANCE (3) worksheet (3) test (1) - demand for and a. Balance of trade Students can (4) computer and (4) interactive group supply of foreign explain the projector discussion currency factors (5) chalk and - BOP affecting blackboard disequilibrium the balance (6) teaching CD- under fixed of trade ROM exchange rate b. Balance of a. students system payment (BOP) can explain - BOP i) Definition how each disequilibrium ii) Com component under flexible ponents of BOP is exchange rate iii) Dou affected system ble entry book- with given data Nam Wah Catholic Secondary School 40 Work Scheme

keeping b. students (2) surfing the can explain following website the factor with students affecting www.myeconlab.com/abel BOP

Students can define exchange c. Exchange rate rate and system explain the i) The exchange meaning of rate the change in exchange rate

a. students can explain the demand for foreign ii) Demand and currency is supply of foreign derived currency from import and capital outflow Nam Wah Catholic Secondary School 41 Work Scheme

b. students can explain the supply of foreign currency is derived from export and capital inflow Students can give a brief discussion of fixed rates, iii) Floa flexible ting exchange rate rates, and system the Hong iv) Fixe Kong d exchange rate linked rate system Students can v) Linked exchange explain the rate system long-run and short- run factors vi) Factors affecting affecting Nam Wah Catholic Secondary School 42 Work Scheme

the exchange rate the exchange rate Students can explain how the balance of trade is vii) The affected Marshall Lerner with the condition change in exchange rate Students can explain the automatic adjustment mechanism under fixed viii) BOP and flexible adjustment rates Students can explain the other measures of Nam Wah Catholic Secondary School 43 Work Scheme

correcting BOP imbalance ix) Other measures ◎ of correcting BOP imbalance Students can explain the difference between the fixed rates and flexible rates◎

x) Fixed exchange rate versus floating exchange rate system Appendix : Brief history of the international Monetary and exchange rate system Nam Wah Catholic Secondary School 44 Work Scheme

24-26 5-2-08 to Final Examination and Lunar New Year Holidays 29-2-08