Economic Indicators
Participants and Resources
Government Policies
Global Economy and Trade
Money Matters
100

What does GDP stand for?

Gross Domestic Product

100

Name one natural resource and one capital resource.

Coal and machinery

100

What is fiscal policy?

Government decisions about taxation and spending

100

What does it mean when we say Australia is a part of the global economy?

Australia trades goods, services, and capital with other nations

100

What is superannuation?

A system where money is saved during working life for retirement.

200

What does the unemployment rate measure?

% of people in the labour force without jobs actively seeking work.

200

What are the four key economic participants?

Households/consumers, businesses/enterprise, government, financial institutions

200

What is the cash rate target and who sets it?

Interest rate set by the RBA to influence economic activity

200

Name two of Australia’s major trading partners.

China, USA, Japan, South East Asia.

200

Why is saving for superannuation important for individuals?

Provides financial security in retirement.

300

What is inflation?

A general increase in prices and fall in the purchasing value of money.

300

What role do households play in the economy?

They supply labour and consume goods and services.

300

Give an example of expansionary fiscal policy.

Tax cuts or increased government spending to stimulate the economy.

300

How does international trade benefit Australian consumers?

Provides more choice, lower prices, access to goods not produced locally.

300

How does superannuation benefit the government?

Reduces reliance on age pensions and welfare.

400

What happens to GDP during a recession?

It decreases or grows at a negative rate.

400

What type of resource is a mechanic’s expertise?

Labour resource – human skill/effort

400

How does a change in the cash rate impact inflation?

Lower rates can increase inflation; higher rates can reduce it.

400

What is one disadvantage of being part of the global economy?

Exposure to global financial crises or reliance on imports.

400

What is tax revenue used for in Australia?

Funding services like healthcare, education, infrastructure.

500

Interpret this graph: If inflation is rising sharply while GDP stays flat, what might this indicate?

Stagflation – high inflation and stagnant growth.

500

Explain the interaction between households and businesses in the circular flow model.

Households provide labour, businesses provide income and goods/services.

500

How does the federal budget affect individuals?

It influences tax rates, public services, and welfare payments.

500

Explain how an increase in exports affects GDP.

Exports are added to GDP, so it increases economic growth.

500

Explain how a change in tax rates can influence consumer spending.

Lower taxes increase disposable income, boosting spending; higher taxes reduce it.

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