Basics of Econ
How is economy measured?
GDP
Name two benefits of being employed.
Income, financial stability, experience, or social benefits
What is inflation?
How often is GDP measured in Australia?
Quarterly (4 times a year)
What is the term for unemployment caused by people moving between jobsS
Frictional unemploymen
What is the most common way to measure inflation in Australia?
Consumer Price Index (CPI)
Name a 3 basic living standards
food shelter and entertainment or healthcare
Which type of unemployment happens when businesses lay off workers due to economic downturns?
Cyclical unemployment
Name two types of inflation
Demand-side inflation and supply-side inflation
What is one weakness of using GDP to measure human well-being?
It doesn’t measure rising living costs or environmental impacts
What type of unemployment occurs when jobs disappear due to changes in production methods?
Structural unemployment
If wages increase, production costs rise, and businesses raise prices. What type of inflation is this?
Cost-push inflation (Supply-side inflation)
What is the difference between GDP and GDP per capita?
GDP is the total economic output of a country, while GDP per capita divides GDP by the population to show average income per person.
What are two reasons a government tracks unemployment trends?
To predict future job markets and create policies to reduce unemployment
How does inflation impact local producers compared to overseas competitors?
It makes local products more expensive, reducing competitiveness against cheaper imports.