Key Terms
The economic problem caused by unlimited wants and limited resources.
What is scarcity?
This sector buys goods and services and provides labour.
What is the household sector?
The exchange of goods and services across international borders.
What is international trade?
This abbreviation stands for the total value of goods and services produced in a country.
What is GDP?
This organisation issues Australia's banknotes.
What is the RBA?
This term describes giving up one thing to gain another.
What is a trade-off?
Name one of the three leakages from the circular flow model.
What are savings, taxation or imports?
This trade barrier places a tax on imported goods
What is a tariff?
When GDP is growing strongly, businesses generally experience more of these
What are sales, profits, jobs, or economic activity?
This investment gives you a small ownership stake in a company.
What are shares?
Every decision has one of these, meaning the next best alternative forgone
What is opportunity cost?
The sector responsible for borrowing, lending and transferring funds.
What is the finance sector?
This occurs when a country focuses on producing a limited range of goods efficiently
What is specialisation?
Strong exports usually have this effect on GDP.
What is increasing GDP or economic growth?
This type of debt is often considered "good debt" because it can help build an asset.
What is a mortgage?
A person or group affected by a decision is called this.
What is a stakeholder?
Name all three injections into the economy.
What are investment, government spending and exports?
The international organisation that acts like a referee for global trade.
What is the WTO?
This measure compares changes in economic output over time to show how fast an economy is growing.
What is the GDP growth rate?
A currency rising from USD $0.70 to USD $0.75 is experiencing this.
What is appreciation?
This term describes countries becoming increasingly connected through trade, technology and communication.
What is globalisation?
If businesses close, household income falls, demonstrating this economic concept.
What is interdependence?
Explain why Australia trades heavily with Asia.
What is geographic proximity, strong Asian demand, complementary resources, trade agreements, or cultural links?
Explain one way exports can improve living standards.
What is creating jobs, increasing incomes, generating tax revenue, or supporting economic growth?
Name three qualities commonly associated with successful entrepreneurs.
What are innovation, risk-taking, resilience, leadership, creativity, or initiative?