Through the application of economic concepts, theories, and principles, examination candidates should assess the role of economic agents in the allocation of scarce resources, and adopt multiple perspectives in understanding real-world economic issues. Examination candidates recognise trade-offs and consequences from decision-making, and arrive at well-reasoned economic decisions. Candidates should develop knowledge, skills, and values, and take an active interest in Singapore's economy and the global economy as contributing and concerned citizens.
To help economics students thrive in a fast-changing VUCA (Volatile, Uncertain, Complex, and Ambiguous) world, one of the key 21st Century Competencies emphasised in the Economics Curriculum is Sound Reasoning and Decision Making. These are under the domain of Critical and Inventive Thinking. Given the importance of decision-making skills, the decision-making approach through an economic lens will be used to front disciplinary thinking in A Level Economics.
In this economics syllabus, decision-making is now framed as a process where economics students analyse how decisions are made from the perspectives of different economic agents (e.g., consumers, producers, and governments), adjusting for changes where appropriate.
Examination candidates will take account of the benefits, constraints, costs, perspectives, and necessary information, while recognising the impact of intended and unintended consequences arising from the decisions made, and corresponding trade-offs. Examination candidates will also recognise that decision-making by economic agents can have multi-faceted, short and long term implications that impact other economic agents.
Examination candidates will understand how the market forces of demand and supply interact to bring about market equilibrium (i.e., the economic concepts of the price mechanism, invisible hand, and coordination of the allocation of resources). Examination candidates will also examine the strategies of firms to achieve their varied objectives – and profit maximisation is not the only goal or aim of firms.
In addition, candidates understand that while rational decisions made by consumers and producers are necessary for the functioning of markets, these individual decisions may lead to inefficient and inequitable outcomes. And in response, governments may intervene through public policy measures to improve efficiency and equity, while recognising limitations, unintended consequences, and possible trade-offs of government intervention. This theme provides insights into real-world microeconomic issues and opportunities to deepen economic reasoning, analysis and application of microeconomic concepts to both Singapore, and the global economy.
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