Basic Economics
Things that people require to survive, such as food, water and shelter.
What is a need?
Australia’s central bank, responsible for implementing monetary policy.
What is the Reserve Bank of Australia?
The total value of goods and services produced within a country over a particular period.
What is Gross Domestic Product (GDP)?
Health, happiness, personal safety and leisure time are examples of this type of living standard.
What are non-material living standards?
Goods and services purchased from another country.
What is an import?
The next-best alternative given up when an economic choice is made.
What is opportunity cost?
The Reserve Bank of Australia uses interest rates through this type of policy.
What is monetary policy?
The RBA and Treasury aim to keep annual inflation within this range.
What is 2-3%
Unemployment caused by workers moving between jobs.
What is frictional unemployment?
Goods and services sold to another country.
What is an export?
Households, businesses, government and these organisations are the four main participants in the economy.
The Australian Government uses taxation and government spending through this type of policy.
What is fiscal policy?
The general increase in the prices of goods and services over time.
What is inflation?
Unemployment caused by a downturn in the economy.
What is cyclical unemployment?
Australia exports large quantities of this mineral to China.
What is iron ore?
The study of the entire economy, including inflation, unemployment and economic growth.
What is macroeconomics?
This COVID-era payment was given to businesses to help them continue paying their employees.
What is JobKeeper?
This indicator measures changes in the prices of a typical basket of household goods and services.
What is the Consumer Price Index (CPI)?
Unemployment caused when workers’ skills no longer match the jobs available.
What is structural unemployment?
This country was Australia’s largest source of imports in 2025.
What is China?
The study of decisions made by individuals, households and businesses.
What is microeconomics?
This COVID-era payment was given to unemployed people who were actively looking for work.
What is JobSeeker?
This economic indicator measures the percentage of the labour force without a job.
What is the unemployment rate?
According to the ABS definition, a person must work at least this many hours in a week to be classified as employed.
What is one hour?
These are the three key economic questions.
What is what to produce, how to produce and for whom to produce?