Economics

Question 1

What is supply?

Answer 1

The quantity of a g/s that a producer is willing to produce.

Question 2

What is demand?

Answer 2

The amount of g/s that consumers will buy at a particular price.

Question 3

What is the law of supply?

Answer 3

Higher price of product, higher quantity producers willing to produce.

Question 4

What is the law of demand?

Answer 4

Lower price of product, more consumers willing to buy

higher price of product, less willing consumers willing to buy

Question 5

What is an equilibrium?

Answer 5

Where the law of supply and demand intersect.

Both consumers and producers are happy.

Question 6

How does the gov participate in the economy?

Answer 6

• Collect tax (income, GST, company and sin taxes)
• provide public g+s
• monitor economic performance- stimulus payments, subsidising certain g+s to encourage consumers to spend on them (childcare, healthcare, higher education)

Question 7

What is a planned market?

Answer 7

Gov makes most/all of important decisions regarding the production and distribution of g+s.

Question 8

What is a free market?

Answer 8

Where market is based more on law of supply and demand, rather than central gov regulating productions of g+s

Question 9

What is a global economy?

Answer 9

Where a country conducts trade w outside regions. They consume and produce g+s from overseas.

Each country must trade w other, resulting in a world of global economy where there are exchanges between producers- who manufacture g+s, and consumers, who purchase the g+s.

Question 10

Who is aus biggest trading partner?

Answer 10

China

Question 11

What is tourism?

Answer 11

The movement of people to countries/places outside their usual environment for personal/business/professional purposes

Service that countries export

Question 12

What are slums

Answer 12

Settlements, neighbourhoods or city regions that can’t provide basic living conditions necessary for its inhabitants to live in a safe and healthy environment.

Question 13

What is slum tourism

Answer 13

Type of city tourism that involves wealthier tourists visiting impoverished areas.

It offers a culture shock, mostly to westerners and is debated on its benefits.

Question 14

What are the pros of slum tourism

Answer 14

Brings awareness
Westerners more grateful
Generates income
Creates job opportunities 
Awareness small businesses
Improves infrastructure 
Can improve living conditions

Question 15

What are the cons of slum tourism

Answer 15

Westerners degrading locals
Locals treated less superior
Raising awareness doesn’t equal help or action
Exploits locals- locals used as an attraction
Dangerous
Locals seem to like it, but may not be aware of it

Question 16

What is a transnational corporation

Answer 16

A business enterprise which operates from a base in one country, but has branches and manufacturing networks in at least one other country.

Question 17

What are the characteristics of a tnc?

Answer 17

Have home country
Operate in other countries
Giant in size
Centralised control (headquarters)
Flexibility- adaptable to dynamic consumers and change

Question 18

What is a global supply chain

Answer 18

Where resources and production may come from one country, but designs and advertisements may come from another country.

Question 19

Why do businesses use global supply chains?

Answer 19

Lowers production costs
Natural resources may determine what a country produces.
Company could respond more quickly to consumers needs at a local level, bc there spread all around the world.

Question 20

What are the pros of global supply chain

Answer 20

Create jobs
Able to buy failing businesses, and provide things such as machinery so they can produce their products- could lead them to competing on a global scale.

Question 21

What are some cons of the global supply chain?

Answer 21

Pollution
Dangerous working conditions
Not morally or socially responsible
Political unrest between countries can affect flow of trade and therefore will affect supply chains.

Question 22

What are the impacts of the gsc?

Answer 22

Poor living conditions and standards
Unethical practices
Sweat shops
Workers exploited for few dollars per day
Pollution
Oil spills
Deforestation
Greenhouse gas emissions