Definitions
Economics
A social science concerned with the production, distribution, and consumptions of goods and services.
Who is in charge of creating Fiscal policies in Australia?
The Australian Government
Is Australia a developed or not-developed country?
Developed.
What 3 topics do we cover in this subject?
Economics, Business, and Accounting.
When is your exam?
Week 7, Lesson 2
GDP
Gross Domestic Product. It is the measure of the total value of all final goods and services produced within a country’s borders in a specific time period.
Name 1 aim of income distribution.
1. Reduce policy
2. Achieve the line of equality in the Lorenz Curve
3. Achieve perfect equality (0) in the Gini coefficient
List these countries in order of lowest to highest standards of living: USA, Denmark, Bangladesh.
Bangladesh, USA, Denmark.
What is worse: a recession or a depression?
A depression.
Name 2 indicators of economic performance.
Any two of: GDP, Economic Growth Rate, Inflation Rate, and Unemployment rate.
Inflation
Occurs when there is an increase in the general level of prices paid for goods and services over a certain period of time. This means the consumer has to pay more for goods and services.
Name 2 ways the Government use taxes.
Any two of:
1. Education
2. Health Care
3. Defence
4. Aged Care
5. Centrelink
What are the two types of standards of living?
1. Material
2. Non-material
Which level of Government is responsible for tax?
State and Territory.
How many states and territories are there in Australia?
8 (TAS, VIC, NSW, ACT, QLD, SA, NT, WA)
Standard of Living
Standard of living is the quantity and quality of material and non-materials goods and services available to a given population.
What are the 3 aims?
1. Redistribute Income
2. Flatten the business cycle
3. Improve living standards
List 2 things that impact low living standards.
Any two of:
1. Mortality Rate
2. Unemployment Rate
3. Health Care
4. Sustainability
How do you calculate inflation rate?
((GDP2-GDP1)/GDP1) x 100
Who is the current Prime Minister of Australia?
Scott Morrison (Scomo)
Fiscal Policy
Fiscal policy is the use of revenue collection and government spending to influence the economy.
Which Fiscal policies do the Government use to improve living standards?
1. Minimum Wage
2. Government payment and funded service
3. Taxation
How do you measure material standard of living?
GDP, PPP, QLI, and HDI.
Name the 6 phases of the Business Cycle.
expansion
peak
recession
depression
trough
recovery
List the 5 different sectors of the economy.
1. Household Sector
2. Business Sector
3. Finance Sector
4. Government Sector
5. Foreign Sector