Hass - Economics and Business Topics Flashcards
(24 cards)
What does economic activity mean
all the actions involved in producing, distributing and consuming goods and services
What does rising economic activity tend to be associated with?
Rsing standards of living.
What are some economic indicators?
- The economic growth rate
- The unemployment rate
- The inflation rate
- The Human Development Index
- the Better Life index
- sustainability indexes
What is GDP stand for and it’s definition?
Gross Domestic Product
- is the total value of the final goods and services produced in an economy in a year
What goods and services are included and are not included in GDP
are:
clothing, cars
Not:
items made by one company but then bought by another company to add to a final product, such as tyres that come with a new car w
What is Economic growth rate?
The percentage % change in GDP from one year to the next
NOMINAL AND REAL (PG. 66)
nominal- with inflation and real without inflation
What is the business cycle
The rate of economic growth which tends to move in waves.
What is a recession?
The amount of goods and services produced falls each year and the ecomic growth is negative
To be concisdered unemployed?
a person must currently not have job. be willing and able to work, and be actively be seeking work.
What does the unemployment rate tell us?
the proportion of the labour force that is currently unemployed
who are not included in the unemploment rate
- people who are not available for work such as :
1. full time students
2. stay at home parents
what is the term which is used when describing people moving between jobs
frictional unemployment
what is the lowest unemploment rate Australia can achieve
4.4-5%
What does the inflation rate measure?
the rate at which teh genral level of prices in a particular economy has risen over a year.
What is Australian govt target range of inflation
2-3% each year
Why would a very low inflation rate be bad for the economy?
- difficlut for wokers to obtain wage increases
Why si a high inflation rate alos bad for the economy
- reduces the coutry’s international competitiveness and reuces the purchasing power of people who’s incomes rise at a slower rate then inflation.
Exeptionally high rates of inflation are known as
HYPERINFLATION
What are some of the phrases of the business cycle
peak, downswing, trough and upswing
The human Development Index is calculated by the United Nations based on 3 key variables:
- expected lifespan, education and average income in each country
- on a scale 0-1
What does a higher HDI score suggest
a higher standard of living
The Organsitaion for Ecomic Co-operation and Development (OECD) calculates:
the Better Life index
HAVN’T DONE PG. 68
