Circular Flow of income Model
Australia
Extremely Hard Questions
Australian
Economy
Economy
Supply and Demand
100
What are the two main sectors in the basic circular flow of income model?
Households and businesses (or firms).
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 indicators of economic growth
Answers may vary
100
What is the law of supply?
200
In the circular flow model, what do households provide to businesses in return for income?
land, labour, capital.
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
What does GDP stand for
Gross Domestic product
200
Name two reasons that can cause changes in supply
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
Which state or territory of Australia has the highest population density?
ACT
300
Who first invented the first car?
Karl Benz
300
What is unemployment?
Unemployment occurs when people who want to work cannot find a job
300
Name two reasons that can cause changes in supply
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
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
Name 3 Effects of Unemployment
Low Unemployment rate:
Higher Income Levels: More people earning wages means households have higher income to spend on goods and services.
Increased Consumer Spending: When more people are employed, consumer confidence increases and people are more likely to spend money. This can stimulate economic growth.
Higher Government Revenue: When more people are working:
income tax revenue increases
government spending on unemployment benefits decreases
High Unemployment rate:
Poverty and Financial Stress: People without jobs may struggle to afford: housing, food, healthcare, education. -> This can increase poverty levels.
Lower Consumer Spending: When many people are unemployed, households spend less money. Lower spending can lead to: reduced business revenue; business closures; further job losses;
Slower Economic Growth: High unemployment reduces economic productivity. Fewer workers producing goods and services means GDP growth slows.
400
What is the market equilibrium
The point at which the demand and supply curve intersect is called market equilibrium.
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
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
What is an "ideal" GDP growth rate.
An "ideal" growth rate is between 3% and 4% per year.
500
What is price mechanism
price mechanism refers to the forces of demand and supply in determining the price and quantity of a good or service.