ECONOMICS Flashcards

Question

what is the Business Cycle? the 4 words and what they do in business cycles

Answer 1

The business cycle is the fluctuations in economic activity. The level of economic activity changes from periods of growth (‘boom’) to recession (‘bust’) and back to boom conditions. Changes in the business cycle occur for several reasons, such as excessive spending or decrease in consumer confidence levels trough: the lowest point in a recession contraction: it is starting a recession expansion: is when the business is starting to experience economic growth peak: the highest point in a expansion

Answer 2

Living standards can be measured through: - Rates of economic growth - Income per person - The amount of goods and services consumed by a country

Answer 3

The level of material welfare of a community, class or person

Answer 4

Benefits associated with increased economic growth: -Increased consumption (more access to goods and services)  Increased living standards -More people have jobs -> More taxes -> More money spent on education, health, public transport and infrastructure - Reduced unemployment and poverty -> Income to spend on improving their living standards

Answer 5

Foreign ownership levels employment rates government debt levels. household debt levels Each country is unique but some circumstances can influence the way a country performs and the living standards of people within the economy.

Answer 6

Necessary for some countries to ensure there is sufficient investment and money to develop sectors of the economy. High levels of foreign ownership mean - profits earned are taken out of the country - if the company leaves, local people will lose their jobs (e.g. in 2017 Ford, Holden and Toyota)

Answer 7

Full employment means that almost all who are able or willing to work can be employed in a job. Full employment generally means people - have more disposable income to buy goods and services they need and want - can afford housing - don’t have to rely on government for social security

Answer 8

When government spends more than it receives, it runs a budget deficit Governments will often run a deficit to stimulate the economy BUDGET DEFICIT > DEBT > INTEREST REPAYMENTS

Answer 9

Also an indicator of the living standards If a person has high levels of debt and becomes unable to work, this can have a negative impact on their living standards

Answer 10

health (life expectancy) family life (divorce rate) community life (church attendance and trade union membership) material well-being (GDP per person) political stability and security climate and geography job security (unemployment rate) political freedom gender equality (male and female earnings). -The topics are housing, income, jobs, community, education, environment, civic engagement, health, life satisfaction, safety and work–life balance.

Answer 11

there are several factors that influence the distribution of income and wealth in Australia: Income levels Occupation Inheritance Education Geography and location

Answer 12

Your income will influence your wealth levels. Salaries will vary across gender – on average: Male employees earn more than female employees. Female employees are predominately part-time.

Answer 13

People in Australia are employed in the private (non-government) or public sector (government). People working in the public sector earn more than those working in the private sector (around $319 more per week). Private sector comprised 81% of all employees.

Answer 14

Inheritance is when you receive property, money or other assets from a relative/ancestor by legal succession or will. Inherited wealth is one way that inequality is generated. Wealthier households tend to receive larger inheritances, on average, than poorer households. ‘The rich get richer’.

Answer 15

a bachelor’s degree had the most impact on career advancement. Most higher-status jobs require university qualifications. Traineeships, TAFE certificates and diplomas had an early increase on earnings, but it flattened out. It is mainly males whose earnings are affected positively by apprenticeships (due to pay inequality).

Answer 16

A person living in a remote area is likely to be paid more than a person living in a large city (harder to find and retain employees in remote areas) The government will occasionally offer incentives to work in remote communities. A number of jobs are fly in, fly out (FIFO) where employees go to their job for a few weeks and then fly home to family (instead of relocating permanently to the area where they work.

Answer 17

To ensure the most efficient and productive use of resources To optimise the use of our economic resources (maximise their benefit) To establish laws and infrastructure to ensure the economy operates efficiently and effectively To establish and maintain basic living standards To redistribute income and avoid huge differences in wealth To balance competing economic and social interests e.g. economic growth vs. environmental sustainability.

Answer 18

-To ensure the most efficient and productive use of resources To optimise the use of our economic resources (maximise their benefit) -To establish laws and infrastructure to ensure the economy operates efficiently and effectively -Provides jobs to construction workers, and for long periods of time. Reduces / eliminates delays. People are arriving to work on time, which boosts productivity. -Promotes job opportunities as it improves the access to workplaces. The improved train network will assist people who can’t afford a car and the ongoing costs of a car or for people who prefer using public transport).

Answer 19

- The way in which government changes its spending levels and taxation - The fiscal policy is used to adjust the economy to a desired level where prices are steady, the employment level is satisfactory and there is potential growth. Usually implemented when the economy is slow moving or moving too fast. The Australian Government is responsible for the fiscal policy.

Answer 20

Policy to encourage strong and sustainable growth in an economy. It aims to control inflation, preserve the value of money, manage interest rates and the total supply of money circulating in the economy. The Reserve Bank of Australia is responsible for administering the monetary policy.

Answer 21

Individuals and businesses are required to pay tax, such as: GST (Goods and Services Tax) Income Tax Medicare Levy (funds the National Disability Insurance Scheme) Tax can improve living standards through the provision of hospitals, education, transport, pensions, grants, etc. The progressive tax system is designed to reduce wealth differences by applying high tax rates to high income earners.

Answer 22

Highly skilled and flexible workers can improve Australia’s productivity and international competitiveness, along with maintain current living standards. These workers are a result of public sector schools, TAFE colleges and universities, which are funded by the federal and state government.

Answer 23

If there is a skill shortfall in the Australian workforce, the federal government will make various visas / programs available to source additional workers from overseas.

Answer 24

The skilled migration program is one scheme offered by the government. Targets potential immigrants with skills and abilities that will contribute to the Australian economy. This program is permanent – the immigrant can permanently live in Australia. The temporary skill shortage (TSS) visa is another scheme offered by the government. Supports businesses that have skill shortages in their workforce. The length of this visa varies between 2 – 4 years.

Answer 25

The Australian Government is responsible for setting the national health policy. State governments are responsible for various elements of the system, such as running of hospitals. Local governments provide services including environmental services (such as sanitation) and a range of community-based health and home-care services.

Answer 26

There are many Australians who do not have sufficient financial resources to sustain an acceptable lifestyle (e.g. unemployed, unable to work due to age, disability or sickness, people performing unpaid work). Government collects tax revenue (e.g. GST, income tax, company tax) and redistributes some of it back to low-income earners (e.g. pension, sickness benefits, Family Assistance payments, Newstart Allowance, Youth Allowance).

Answer 27

Publicly funded healthcare system for all Australians. Gives access to doctors, medical specialists, optometrists and other health professionals for free or at a reduced cost. Also includes free care as a public patient in a public hospital and lower costing prescriptions.

Answer 28

The provision of education in Australia encompasses four sectors: Early childhood education (preschool) Primary education (primary school) Secondary education (high school) Tertiary education (universities, TAFE and vocational education and training)

Answer 29

Minimum wage is an employee’s base rate of pay for the ordinary hours worked Ensures that employees protected and given a fair and reasonable pay to live on. The Fair Work Commission determines the minimum wage in Australia. Current minimum wage in Australia is $19.49.

Answer 30

Both state and federal governments provide different types of support and payments for people who may struggle to maintain sufficient living standards (e.g. Family Tax Benefit, Rent Assistance, etc.)

Answer 31

People contribute to revenue in a fair and equitable manner. Taxation system aims to generate sufficient revenue to provide services that the community expects and to support a fair society. Taxation revenue is also used to sustain and stimulate the economy.

Answer 32

Examples of government-funded services include education, health , benefits and essential services, such as fire and police

ECONOMICS Flashcards

(57 cards)