Goods and services sold by local businesses to overseas consumers
Exports
The type of business that has between five to twenty employees
Small Business
What are the main phases of the business cycle (5)
Expansion, Boom, Recession, Depression, Contraction
What five sectors comprise the Australian economy?
1. Household
2. Business (firms)
3. Financial
4. Government
5. Overseas
Provide an example of a financial intermediary
Banks
The use of money to purchase equipment or premises for the establishment of a new business or the expansion of an existing business
Investments
The type of market where we buy most of our goods and services from
Retail Markets
The cyclical fluctuations in the level of economic activity that an economy goes through over time
What are the examples of leakages from the circular flow of income model
Savings, Taxation, Imports
When individuals deposit money, what do financial intermediaries usually do with that money?
Lend the money to other individuals or business
A large business that has branches in more than one country
Transnational Corporation
What is being bought and sold on financial markets?
Money
What are the main economic problems during a recession?
- Low levels of income and production
- High levels of unemployment;
- No, or very little, increase in salaries and wages;
- Declining business sales and profit.
What are the examples of injections from the circular flow of income model
Investment, expenditure, exports
Identify one of the main roles of the Australian Securities and Investment Commission (ASIC).
Monitor the financial services industry
Monitor the provision of financial services such as investment advice
Provide consumer protection in financial services, including shares, managed funds, superannuation, insurance, credit and deposit-taking
The cyclical fluctuations in the general level of economic activity
What is being bought and sold on the labour market?
Employee Skills and Effort
List 3of the main economic effects of the Great Depression.
- drop in the sharemarket,
- rising unemployment,
- decreased household spending,
- lower production in factories,
- businesses going bankrupt
- savings in bank accounts wiped out.
Which sector of the five-sector circular flow of income model focuses on imports and exports
Overseas Sector
Define 'Fiscal Policy'
Fiscal policy is the use of the federal government's budget to achieve economic objectives
A general rise in prices across all sectors of the economy, causing money to lose its value
Inflation
Between how many employees does a medium business have?
A medium business has between 20-199 (200) employees
List 2 of the impacts of the Global Financial Crisis?
- negative economic growth,
- declining trade and rising unemployment.
- rising poverty
- inadequate housing.
What is the relationship between the household sector and the firm sector.
Consumers (household sector) buy good/services that the businesses have (firm sector). The firm sector also provides the household sector with an income
Define 'Monetary Policy'
Monetary policy is the Reserve Bank using interest rates to achieve economic objectives.