Economics
Australia has a market-based economy, decisions to produce or consume goods and services reflect demand and supply of the market.
Describe Australia’s economic systems!
Things that people must have to survive
What are needs?
triple
Things that people would like to have but can live without
What are wants?
China, Japan, South Korea
Top three countries Australia exports to
expenditure method or spending method
One method to calculate GDP
The total of household consumption, business investments, government spending and imports and exports.
What are the components of GDP?
Refined petroleum, Personal travel, Motor Vehicles, Goods vehicles, Telecom equipment & parts
What are the five resources Australia imports?
Goods and services sold by local businesses to overseas consumers and businesses.
What is the definition of export?
It is measured as the change in average prices over time.
How is inflations measured?
What is one of the negative effects of import?
Iron ore, Coal, Natural gas, Education-related travel services, Gold
What are the 5 resources Australia exports?
The sum of final of consumption, expenditure and savings, or total income minus total taxes
What is disposable income?
They are the quality of housing, material comfort, and wealth experienced by an individual or group.
What are living standards?
The difference between the value of country’s export and value of it’s import over a specific period of time.
What is the balance of trade?
China, United States, Japan
Top three countries Australia imports from
Goods and services purchased by local consumers from overseas businesses.
What is the definition of import?
Money that is received regularly for work or through investments.
What is income?
A sustained increase in the general price level (average price).
What is inflation?
The value of the total final output of goods and services produced by an economy in a certain period
What is Gross Domestic Product?
People who are employed part time or full time and those who are unemployed.
What is labour force?
People who are retired, unable to work, or studying, caring for someone.
Who are not in the labour force?
The relationship between growing unemployment and losses in a country's production.
What is Okun's law?
The change in GDP over time
What is GDP growth rate or economic growth rate?
What you give up in order to purchase something else.
What is opportunity cost?
The number of unemployed divided by the total labour force and multiplied by 100.
How do you calculate the unemployment rate?