Investigating an economic or business issue — like the impact of a new technology on jobs, or whether a proposed tax change is fair — starts with developing a clear, researchable question. Relevant information and data can be gathered from sources like government statistics, news reports, and business or industry data. Interpreting this information often involves identifying trends (like rising prices) and cause-and-effect relationships (like how a shortage of a good tends to raise its price). A well-developed response to an economic issue identifies potential costs and benefits of different options or courses of action, using economic and business concepts and terms, and referencing evidence from sources.
Example
Investigating "Should the government increase the minimum wage?" would involve researching data on cost of living and business costs, considering potential benefits (higher income for workers) and costs (potential impact on business expenses or hiring), and forming a response based on that evidence.
Key terms
Economic issue:
A question or debate involving the production, distribution or use of resources, money or goods and services.
Trend:
A pattern or general direction shown in economic data over time.
Cost-benefit thinking:
Weighing the potential costs and benefits of a decision or policy.
Questions
1. Investigating an economic issue starts with:
Ignoring the topic
Developing a clear, researchable question
Skipping research
Assuming the answer already
2. Data for economic research might come from:
Only rumours
Government statistics and news reports
No data at all
Only fictional stories
3. A trend in economic data shows:
A single random number
A pattern or general direction over time
Nothing meaningful
Only opinions
4. Cost-benefit thinking means:
Ignoring all costs
Weighing potential costs and benefits of a decision
Only considering benefits
Avoiding any analysis
5. A cause-and-effect relationship in economics might show:
No relationship at all
How a shortage tends to raise prices
Random unrelated events
Nothing about markets
6. An economic issue involves:
Only unrelated topics
Production, distribution or use of resources, money or goods and services
Nothing about resources
Only sports
7. A well-developed economic response should:
Ignore evidence
Reference evidence from sources
Be based on guessing
Avoid using economic terms
8. Investigating "Should the government increase the minimum wage?" requires considering:
Only one perspective
Potential costs and benefits from multiple angles
No research at all
Ignoring evidence
9. Rising prices for a good over several months would be described as:
A random one-off event
A trend
Unrelated data
Impossible to observe
10. If a shortage of a good raises its price, this shows:
No relationship between supply and price
A cause-and-effect relationship between supply and price
Prices are unrelated to supply
Random pricing with no cause
11. Which is a reliable source for economic research?
A random guess
Government statistics or credible industry data
Personal opinion alone
An unrelated topic
12. Weighing "potential costs and benefits" of a new tax policy means considering:
Only the benefits
Both the advantages and disadvantages of the policy
Neither costs nor benefits
Ignoring the policy entirely
13. Why might economic issues often involve genuine disagreement between reasonable people?
Economic issues never involve disagreement
Different values and priorities can lead to different views on trade-offs
Disagreement is always irrational
There is always one obviously correct answer
14. Referencing evidence and data in an economic response mainly helps:
Weaken the response
Strengthen the credibility and reasoning behind the response
Make the response less believable
Replace the need for a clear question
15. A report claims a new technology will "destroy all jobs" without providing supporting data. What is the main weakness of this claim?
It is well-supported and should be trusted completely
It lacks evidence, and economic changes are usually more nuanced than an extreme, unsupported claim suggests
All economic claims are equally reliable
Data is irrelevant to economic claims
16. Why might identifying both costs and benefits of a policy (rather than only benefits) lead to a more balanced investigation?
Considering only benefits gives a complete picture
Weighing both sides avoids a one-sided, overly optimistic or pessimistic conclusion
Costs are never relevant to economic decisions
Balanced analysis has no real value
17. Two economic reports reach different conclusions about the same policy using different data sets and assumptions. What should a careful researcher do?
Assume one report is definitely lying
Consider the sources, data and assumptions behind each report before forming a view
Ignore both reports entirely
Automatically believe whichever report is longer
18. Why is it useful to distinguish between a short-term trend and a long-term trend when analysing economic data?
There is no difference between them
Short-term fluctuations may not reflect a genuine long-term pattern, affecting how conclusions should be drawn
Long-term data is always irrelevant
Only short-term data matters
19. A student investigating a proposed new industry in their town considers job creation, environmental impact and cost to local government. This approach demonstrates:
A narrow, one-sided investigation
A well-rounded, evidence-based approach weighing multiple relevant factors
An irrelevant approach to economic investigation
A purely emotional response with no analysis
20. Understanding how to investigate economic and business issues mainly helps students:
Avoid engaging with economic questions
Think critically and use evidence when considering real economic and business issues
Assume all economic issues have a single obvious answer
Ignore costs and benefits
Answer key (parent copy)
1. Developing a clear, researchable question
2. Government statistics and news reports
3. A pattern or general direction over time
4. Weighing potential costs and benefits of a decision
5. How a shortage tends to raise prices
6. Production, distribution or use of resources, money or goods and services
7. Reference evidence from sources
8. Potential costs and benefits from multiple angles
9. A trend
10. A cause-and-effect relationship between supply and price
11. Government statistics or credible industry data
12. Both the advantages and disadvantages of the policy
13. Different values and priorities can lead to different views on trade-offs
14. Strengthen the credibility and reasoning behind the response
15. It lacks evidence, and economic changes are usually more nuanced than an extreme, unsupported claim suggests
16. Weighing both sides avoids a one-sided, overly optimistic or pessimistic conclusion
17. Consider the sources, data and assumptions behind each report before forming a view
18. Short-term fluctuations may not reflect a genuine long-term pattern, affecting how conclusions should be drawn
19. A well-rounded, evidence-based approach weighing multiple relevant factors
20. Think critically and use evidence when considering real economic and business issues