How to study economics in high school

Whether you choose your senior subjects based on your interests, for everyday life skills or to prepare for future career opportunities, studying Economics is a great choice. 

If you want to do well in your Year 11 and 12 classes, it’s helpful to know how to study Economics the right way. To help you succeed, we’ve gathered some of the best tips and tricks for studying Economics we could find. We’ll cover:

• What the study of Economics tests
• General tips for studying Economics
• How to study for an Economics exam
• How to write an Economics research report
• Common mistakes to avoid

What is the study of Economics and what does it test?

If you're interested in studying Economics but aren’t confident you know what it entails, you’re not alone.

Studying Economics teaches you tools for understanding real‑life problems. These include issues like climate change, inequality, health care, wages, housing and globalisation.

Economic problems exist because the world has limited resources, but people have unlimited wants and needs. Because of this, individuals, businesses and governments must decide how to use resources wisely, thinking about the benefits, downsides and trade‑offs of each choice.

Key questions you’ll consider during the study of Economics include: 

• What is market equilibrium in economics?
• What is supply in economics?
• What is crowding out in economics?
• What is interdependence in economics?
• What are economic trade-offs?
• How does economic downturn affect business?

The skills you’ll gain from studying Economics in high school

Studying Economics in high school develops a range of skills you’ll find useful throughout your future career, such as: 

• Mathematical skills: Numerical data helps you understand the scale and scope of economic issues and how concepts like supply, demand and costs work. It also helps you make informed decisions. When studying Economics, you’ll draw on your knowledge of algebra, percentages and ratios to interpret data, analyse graphs and make calculations.
• Communication skills: While Economics is often considered a technical subject, it will also test and develop your communication skills. You’ll need to write responses to assessment questions that demonstrate your understanding of topics using appropriate language choice, sequencing and idea development.
• Analytical thinking, problem solving and decision making: Economics gives you theories and tools to help you analyse scenarios and think through different options, considering pros and cons and potential consequences to make informed decisions and come up with solutions to challenges.

Types of assessment in high school Economics 

Most assessments test how well you understand economic ideas by asking you to apply them to real examples. You’ll likely be asked to describe and explain concepts, translate knowledge into symbolic representations, construct diagrams, complete calculations, and use economic terminology. Other tasks might ask you to find patterns in data or explain relationships. You may also need to analyse information and make decisions using economic criteria.

Teachers may test your understanding of economic concepts through assessment types such as:

• exams
• research reports
• extended responses to stimulus
• investigations.

General tips for studying Economics

Use these study tips throughout each term to maximise learning time in preparation for assessment.

• Participate in each class, ask questions, and try to keep up as your teacher moves through each subject. Economics tends to build on itself, so it can be easy to fall behind if you get stuck on an early topic and don’t ask for support.
• Connect theory to real-life examples by watching, reading or listening to financial news and websites like The Economist for current case studies.
• If you need a quick refresher on key concepts, you can watch short videos online, such as those on the Khan Academy website. These videos cover topics such as microeconomics, macroeconomics, inflation, demand and supply, consumer theory, business cycles, the Keynesian cross, and more.
• Review your notes regularly throughout the term rather than trying to cram right before assessment time. This is a good practice for all your subjects but especially for Economics. 

How to study for an Economics exam 

Use these tips to help you prepare for exams, one of the most common assessment types in Economics. 

• Use your subject syllabus, the document that outlines what you need to learn, as a guide for your study. Exam questions can often be based on dot points mentioned in the ‘Students learn about’ section of the syllabus, so focus on understanding those key points.
• Make sure you understand core economic concepts, like supply and demand and opportunity cost, and the positive and negative effects of each, as this is commonly tested in Economics exams.
• Use visual tools to help you remember concepts and statistics. This is particularly helpful if you’re a visual learner.
• Use active revision techniques to help you understand and retain information, such as:
  • reading your notes and then re-writing them without looking to test your memory and identify gaps in understanding
  • creating study cards to test your understanding of key concepts with the definition on one side of the card and explanation on the other
  • explaining key concepts and definitions to others, whether that be a classmate, sibling, parent or even a pet (a pet can't ask you follow-up questions to test your understanding further, but they may be more patient and less judgmental!)
  • completing practice tests using the ‘Past papers’ available on the QCAA website to get a feel for the types of questions you may be asked (multiple choice, short response and extended response) and practising responding under strict time limits.

Tips for your Economics research report

Increase your chances of getting full marks for your research report by following these handy tips.

• Use the introduction of your report to explain what your report investigates and how.
• Avoid including your own opinions and stick to the facts when presenting your argument.
• To make navigating your report easy for your teacher, clearly label each section as well as any visuals included, like graphs, diagrams or illustrations of relationships.
• Include a reference list with all the resources used to write your report, using the approved referencing style.
• Use keywords to signpost the main points of your argument throughout each section.
• When you discuss an economic issue, explain both the cause and the effect. Then link your explanation to the broader economic theories you’ve learned.
• Summarise your findings and decision in the conclusion without repeating earlier paragraphs.

Common mistakes to avoid when studying Economics

• Confusing correlation and causation: Two concepts you’ll learn in Economics that are often mixed up are correlation and causation. While they sound similar and both are words about describing the relationship between things, they actually have quite different meanings. Correlation refers to two things that are related, while causation implies one thing directly causes a second thing.
• Not thinking about the bigger picture: To fully understand economic issues and avoid jumping to inaccurate conclusions, it’s important to consider all external factors that can have an impact on economic circumstances, such as significant global events, technological advancements, and government policy.
• Not linking answers to broader concepts: Economics assessments check whether you can connect specific examples to the bigger economic concepts you’ve learned. It can be easy to get caught up in the detail when writing responses to specific assessment questions, so it’s important to remember what is likely being tested and demonstrate that you understand how each question relates to broader economic concepts.

Hopefully these tips help you ace Economics in your senior years. But if you get stuck, don’t feel shy about asking your teacher for support.