THE CPAP Study Guide to VCE Economics - Part 1 Unit 3 - 13th Edition - About the authors

Sep 20, 2026

THE CPAP Study Guide to VCE Economics Part 1 Unit 3 (13th edition, 2019) introduces the study design and Chapter 1 focus on microeconomics, including core concepts of markets, economic questions, and government intervention. It outlines the production possibility curve, explains demand, supply, equilibrium price and quantity, and distinguishes movements along curves from shifts. The guide provides author backgrounds, copyright and disclaimer notes, acknowledgements for statistics permissions, and a detailed table of contents with review/application questions.

LanguageEnglish

CategoryExam

FormatPDF

Pages26

Reading Time1 h 6 min

AccessFree to download

The Unit 3 Study Design

Chapter 1 [Unit 3 AOS 1]

An introduction to microeconomics: the market system, resource allocation and government intervention

What is an economy?

What is economics?

The Production Possibility Curve (PPC)

The basic economic questions

The market mechanism and “Perfect Markets”

The market or price mechanism and relative prices

REVIEW/APPLICATION QUESTIONS 1-Introduction

How markets work – the detail

What is Demand?

What is Supply?

Equilibrium price and quantity

Shifts of the demand curve and movements along the demand curve

Shifts of the supply curve and movements along the supply curve

THE CPAP STUDY GUIDE TO VCE ECONOMICS PART 1 Unit 3 13th edition 2019 Romeo Salla Toby Robertson ISBN: 978-1-921813-50-4 ABOUT THE AUTHORS Romeo Salla completed Honours and Masters degrees in Commerce (Economics major) at the University of Melbourne before moving to Canberra to work as an Economist with the Commonwealth Department of Treasury. After a few years he was promoted within the federal bureaucracy to the position of Senior Economist with the Industry Commission (now Productivity Commission). Since 1996 he has been employed as a Senior Teacher and Head of Faculty at large private schools in Melbourne, most recently teaching VCE and IB Economics at Geelong Grammar School. Romeo has held positions of responsibility with the Victorian Curriculum and Assessment Authority (VCAA) as an assessor of final examinations and he was Economics editor of the VCTA website (ComNET) between 2001 and 2008. He is also the founder of [the website www.economicstutor.com.au](the website www.economicstutor.com.au), has contributed to various publications, and regularly presents to Economics teachers and students on behalf of the VCTA and CPAP. Romeo is also the co-author of ‘Economic Fundamentals in Australia’,‘Economics from the ground up’and‘Monumental Humanities 3’ He has also developed the popular smartphone App (Economics Tutor) containing 1,000+ multiple choice and short answer questions. Toby Robertson was born in Switzerland and has lived in England, America, France and Australia. Toby completed a degree in Economics at the Australian National University in 1986. He then worked for CRA (Rio Tinto) in Melbourne as a client advisor to various business units on economics and Foreign Exchange. He moved to State Bank Victoria to work as a Foreign Exchange and Options advisor to large Corporations and was posted to London in 1990 as a Foreign Exchange Trader, speculating in the Foreign Exchange markets. In 1992 he began work with Chase Manhattan Bank in London (one of the largest US banks) as a Vice President and ran their USDYEN Foreign Exchange Desk. In 1995 he moved back to Australia to become Chief Dealer of Chase Sydney. In 1999 he accepted voluntary redundancy and then ran his own proprietary trading business before entering the teaching profession in 2005. He has since contributed to a number of educational publications, presents to teachers across Victoria on behalf of the Victorian Commercial Teachers’Association and has assessed VCE Economics examinations for the VCAA. COPYRIGHT AND DISCLAIMER Please note that this publication is protected by copyright laws and no part of the publication can be reproduced without the express permission of the author. The publication is in no way connected to the VCAA. Readers should be aware that the advice provided throughout the publication is the advice of the author alone, and not the VCAA. ACKNOWLEGEMENTS The publisher and authors would like to thank the Reserve Bank of Australia and the Australian Bureau of Statistics for permission to use their statistics. COMMERCE PRESENTATIONS AND PUBLICATIONS 206/1 Queens Rd Melbourne Vic 3001 TEL: (03) 9866 2289 Fax: (03) 9005 2717 Email: cpap@commpap.com ISBN: 978-1-921813-50-4 ABN: 19 619 387 012 The CPAP Study Guide to VCE Economics, Part 1 (Unit 3), 13th Edition (2019) by Romeo Salla and Toby Robertson 2 TABLE OF CONTENTS The Unit 3 Study Design........................................................................................................................................................ 5 Chapter 1 [Unit 3 AOS 1]....................................................................................................................................................... 7 An introduction to microeconomics: the market system, resource allocation and government intervention..................................7 What is an economy? ........................................................................

FAQs

What topics are covered in Chapter 1 of Unit 3 AOS 1?

Chapter 1 covers an introduction to microeconomics, including the market system, resource allocation, government intervention, and the production possibility curve (PPC). It also addresses the market mechanism and perfect markets, along with relative prices.

How does the guide explain demand and supply?

The guide includes dedicated sections on what demand is and what supply is. It also explains equilibrium price and quantity and differentiates shifts of the demand curve from movements along it, and similarly for supply.

What legal notes and acknowledgements are included?

The publication includes a copyright and disclaimer stating that no part can be reproduced without express permission and that it is not connected to the VCAA. It also thanks the Reserve Bank of Australia and the Australian Bureau of Statistics for permission to use their statistics.

Sep 20, 2026

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