Circular Flow of income Model
Business Cycle
Australia
Extremely Hard Questions
Everything Else
100
What are the two main sectors in the basic circular flow of income model?
Households and businesses (or firms).
100
In 2008, what economic event triggered a global economic recession?
2008 Global Financial Crisis.
100
What is the main ingredient of Vegemite?
Yeast
100
Which country won the first-ever FIFA World Cup in 1930?
Uruguay
100
Name two different types of markets
Retail markets, labour markets, financial markets, and stock markets.
200
In the circular flow model, what do households provide to businesses in return for income?
land, labour, capital.
200
Name 3 characteristics of the Boom phase of the business cycle.
During this phase, production, spending, and employment all increase. Businesses expand, hire more employees, and incomes rise. As a result, overall spending continues to rise. Both consumer and business confidence are high.
200
Whose face is on the $5 Australian bank note
Queen Elizabeth II
200
What is the only country that borders the United Kingdom?
Ireland
200
Name three different types of businesses.
Government, On-Demand, SME, Global, Off-shore, Non-Profit.
300
If households increase their savings and reduce consumption, what effect does this have on the circular flow of income?
It reduces the flow of money in the economy, potentially slowing down economic activity.
300
Name 3 features of the recession phase of the business cycle.
• Income and production are at their lowest level
• Unemployment is at a high level.
• The inflation rate tends to stay low.
• Wages and salaries either fall or grow very slowly.
• Consumer demand and, consequently, business sales and profits reach their lowest levels.
• Bankruptcies are everyday occurrences, and the business outlook is bleak.
• Businesses have a lot of unused resources and no incentive to purchase new machinery.
• Interest rates remain low, while investment opportunities are few and the number of creditworthy borrowers is reduced.
300
Which state or territory of Australia has the highest population density?
ACT
300
Who first invented the first car?
Karl Benz
300
What does CSR stand for?
Corporate Social Responsibilities.
400
What role does the government sector play in the circular flow of income model?
The government collects taxes (leakage) and injects money back through government spending on goods, services, and welfare.
400
What are the four main phases of the business cycle?
Expansion, Contraction/recession, Boom, depression.
400
Which Australian Prime Minister disappeared at sea?
Prime Minister Harold Holt
400
Name the 5 countries which end in the letter L
Brazil, Portugal, Senegal, Israel and Nepal
400
Explain how Aboriginal-owned tourism enterprises contribute both culturally and economically to Australia’s tourism industry.
Aboriginal-owned tourism enterprises help preserve and share First Nations cultures by offering authentic experiences that reflect pre-colonial life, attracting international visitors interested in cultural learning. Economically, they contribute to Australia's tourism revenue and support Indigenous employment.
500
How can increased exports and reduced imports impact the circular flow of income in Australia?
Increased exports are injections that bring more money into the economy, stimulating production and income. Reduced imports lower leakages, which also helps boost domestic economic activity.
500
During a recession, governments often increase spending or cut taxes. Explain how these actions aim to influence the business cycle, and discuss one potential risk of this strategy.
Increased government spending or tax cuts aim to boost consumer demand and business activity, helping the economy recover from recession. However, a potential risk is that it may lead to higher government debt or inflation if not managed carefully.
500
Who are the two Australian racers currently racing in Formula One for McLaren and Alpine.
Oscar Piastri (McLaren) and Jack Doohan (Alpine)
500
Which country has the largest percentage of the global Muslim population?
Indonesia
500
A sudden drought reduces the supply of wheat, while at the same time, the government announces a new subsidy encouraging people to buy wholegrain products. Using the laws of supply and demand, predict what will happen to the price and quantity of wheat sold. Justify your answer.
The drought decreases supply, and the subsidy increases demand. With lower supply and higher demand, the price of wheat is likely to increase.
The quantity sold depends on the relative strength of the shifts—if supply drops significantly, the quantity may decrease even with higher demand.