Economic Foundations
What is scarcity?
When resources are limited but people's wants are unlimited.
What is the capital city of Australia?
Canberra
What is an export?
A good or service sold to another country.
How many days are there in a leap year?
366 days
What is globalisation?
The growing connection between countries through trade, investment, technology, communication and other exchanges.
What is opportunity cost?
The value of the next best alternative given up when making a choice
Which country is famous for the Great Wall?
China
What is an import?
A good or service purchased from another country.
How many sides does a hexagon have?
Six
What does TNC stand for?
Transnational corporation.
Name one role of Australia's financial sector.
It helps people and businesses save, borrow, invest or manage financial risk.
Which is the largest ocean on Earth?
The Pacific Ocean.
If demand for Australian beef increases while supply stays the same, what is likely to happen to its price?
The price is likely to rise.
Which planet is known as the Red Planet?
Mars
What is a global supply chain?
The network of people, businesses, resources and activities involved in producing and delivering a product across countries.
A student spends $50 on shoes instead of a concert ticket. What is the opportunity cost if the concert was their next best choice?
The concert ticket or the experience they gave up
Which country has the cities of Tokyo, Osaka and Kyoto?
Japan
Australia exports iron ore to China and imports manufactured goods. Give one reason both countries may benefit.
Each country can specialise in goods it produces relatively efficiently and trade to access products it wants.
How many players from one team are on the court in a standard basketball game?
Five
Give one positive and one negative effect of globalisation.
Positive: more consumer choice or business opportunities. Negative: worker exploitation, job losses or environmental damage.
Why can't Australia produce everything its population needs and wants?
Resources such as land, labour and capital are limited, so Australia must make choices and can import goods from other countries.
What is the world's largest hot desert?
The Sahara Desert.
What happens to the market price when supply increases but demand stays the same?
The equilibrium price generally falls.
What is the chemical symbol for gold?
Au
A company makes its products in another country because wages are lower. Identify one possible benefit and one risk.
Benefit: lower production costs and potentially lower prices. Risk: poor working conditions or job losses in the company's home country.
A business has $100,000 and can buy new machinery or hire five workers. Explain the opportunity cost of buying the machinery.
The opportunity cost is the benefits the business would have gained from hiring the five workers
Which two countries share the longest international land border?
Canada and the United States.
Explain comparative advantage in your own words.
A country has comparative advantage when it can produce a good or service at a lower opportunity cost than another country.
What is the only mammal capable of true sustained flight?
Bat
What is the difference between a company's home country and its host country?
The home country is where the company is based. A host country is another country where it operates or invests.
Explain how scarcity influences what goods and services a country produces.
A country must allocate its limited resources to selected goods and services, meaning it cannot produce every possible product in unlimited quantities.
Which country is home to the ancient city of Petra?
Jordan
Why might an increase in overseas demand for Australian beef benefit Australian producers?
Higher demand can raise prices and sales, potentially increasing revenue and encouraging producers to expand production.
In computing, what does CPU stand for?
Central Processing Unit.
How can a large TNC affect small local businesses when it enters a market?
It can increase competition and put pressure on local businesses to lower prices or improve products. Some smaller businesses may lose sales or close.
A small business needs finance to expand. Explain how the financial sector can help it make an economic decision.
Financial institutions can provide loans and information about finance options, allowing the business to compare costs, risks and expected benefits before deciding.
Which strait separates Tasmania from mainland Australia?
Bass Strait.
China can manufacture electronics efficiently, while Australia has abundant iron ore resources. Explain how specialisation and trade can benefit both countries.
Specialising according to comparative advantage can allow both countries to use resources more efficiently and exchange products they need, increasing the potential gains from trade.
What is the square root of 1,444?
38
Explain how the internet supports globalisation for a small Australian business.
It allows the business to advertise, communicate with overseas customers, take online orders and access international markets without needing physical stores overseas.
A country can use its resources to produce either more healthcare or more military equipment. Explain the economic trade-off involved.
Resources directed towards one option cannot be used for the other. Producing more healthcare creates an opportunity cost in the military equipment forgone, and vice versa.
Name the only continent that lies in all four hemispheres.
Africa — it crosses both the Equator and the Prime Meridian.
Australia relies heavily on China to buy its iron ore. Explain one benefit and one risk of this trading relationship.
Benefit: strong demand can support Australian export revenue, jobs and economic growth. Risk: if Chinese demand falls or trade relations worsen, Australian exporters and related industries may lose revenue and jobs.
A clock shows 3:15. What is the smaller angle between the hour hand and the minute hand?
7.5 degrees
A TNC creates jobs in a developing country but pays low wages and causes pollution. Evaluate whether its presence benefits the host country.
A balanced answer recognises job creation, investment and possible economic growth, but weighs these against worker exploitation and environmental harm. The overall judgement depends on the scale of the benefits, the costs and whether responsible practices are introduced.