HASS Exam 1 Flashcards
(124 cards)
1
Q
What is a leakage
A
Actions that take money out of the economy causing it to contract
2
Q
What is an injection
A
Actions that take money into the economy causing it to expand
3
Q
When does the economy expand
A
When total leakages < total injection
4
Q
When does the economy contract
A
When total leakages > total injection
5
Q
What do households give to firms
A
Labour and consumption
6
Q
What do firms give to households
A
Goods and services and income
7
Q
What does the financial sector give to firms
A
Investment
8
Q
What does the financial sector get from households
A
Savings
9
Q
What does the government sector get from households
A
Taxation
10
Q
What does the government sector give to firms
A
Govt. spending
11
Q
What does Australia give to the international sector
A
Exports
12
Q
What does the international sector give to the Australia
A
Imports
13
Q
What is GDP
A
Gross domestic products. It is the total value of final goods and services produced in a country in a given time (year or quarter)
14
Q
What is economic growth
A
An increase in the amount of good and services produced in a country, over a year
15
Q
What are final goods
A
Only final goods are counted in GDP. Sugar sold to a bakery doesnt count by sugar sold to households does
16
Q
How do you calculate GDP
A
GDP = Consumption + investment + government spending + net exports
17
Q
What is consumption
A
Spending by households on goods and services and it is the biggest sector
18
Q
What is investment spending
A
Spending by businesses on capital goods that increase their ability to produce other goods
19
Q
What is Government spending
A
When governments spend money on hospitals, schools, defense or welfare
20
Q
What is GDP per capita
A
The amount of money per person and helps to measure living standards
21
Q
How do you calculate GDP per capita
A
GDP level divided by population
22
Q
What are the limitations of GDP as a measure of economic well being
A
It doesn’t take into account for harmful side effects like pollution. Household, voluntary work and second hand sales don’t count and its only an average
23
Q
What is a quarter
A
3 months in a year eg december quarter is oct, nov and dec
24
Q
What months are in the june quarter
A
april may and june
25
What is the GDP level
The total value produced
26
What is the GDP growth rate
How much an economy grew from on period to the next
27
Why is GDP growth rate better than GDP level
It shows how much an economy has expanded or contracted. GDP level only shows total so it could have decreased
28
What is Inflation
General rise in prices of goods and services in an economy overtime
29
What is cost pull inflation
When the cost of making a product goes up leading to the business charging more for it
30
What is demand pull inflation
When consumers demand more goods and services leading to businesses raising prices as they don't have enough stock to keep up
31
How is inflation measured
Through the consumer price index. The ABS gets a basket of goods and services (1000s of items) and measures how one average the prices of these goods and services changed between one year or quarter. The increase is the inflation rate.
32
What is good inflation
When the inflation rate is in 2-3%
33
What is bad inflation
When it is over 3% because the price of goods might increase faster than people income
34
Who are the winners of inflation
High income earners because there income increase faster than inflation, importers as g&s and cheaper in other countries.
35
Who are the losers of inflation
Low and middle income earners as their money doesn't increase as fast as inflation, exporters as their prices have gone up and they aren't the cheapest, and bank savers as their money isn't worth as much as it was
36
What is deflation
When their is a sustained decrease in the average price level of goods and services
37
What is disinflation
A temporary slow down in the growth of the inflation rate
38
What is hyperinflation
A rapid excessive increase in prices in an out of control manner
39
What is unemployment
Someone who is not employed and is not actively seeking work
40
What is employed
People in a paid job
41
What is the labour force
Total number of workers willing and able to work. Employed+Unemployed
42
What is the unemployment rate
The % of labour force who cant find work
43
What is the formula for unemployment
Unemployed/labour force x 100
44
What are the harms of unemployment for households
Reduced standard of living due to lost income, phycological effects like depression
45
What are the harms of unemployment for the government/economy
Less tax received from workforce means less gov money, increased centrelink payments less gov money and less spending in the economy
46
What is the participation rate
The % of people in the working age population that are in the labour force
47
What is the formula for participation rate
labour force/ working age pop. x 100
48
Why does the australian gov not aim for 0% unemployment
It knows there will always be unemployment eg uni graduates and people changing careers
49
What is the full employment rate in aus
4-5%
50
What is the business cycle
A cycle of increasing and decreasing economic growth overtime
51
What is a recession
When a country has 2 quarters in a row of falling GDP levels
52
What are the 4 phases of the business cycle
Expansion, peak, contraction and trough
53
What happens in the expansion phase
The economy is growing, inflation increasing, unemployment is slow, wages are growing and production is increasing
54
What happens at the peak
Where expansion turns into contraction, economy grows out of control causing high inflation
55
What happens in the contraction phase
Economy shrinking, inflation is low, unemployment is high, wages are growing very slowly, production is falling
56
What happens at the trough
Where contraction turns into an expansion, economy starts to recover
57
What is living standard
The overall quality of life experienced by a population
58
what is the difference between material and non material living standards
Material living standards are tangible and contribute to comfortable life style eg housing and transport. Non material living standards contribute to overall well being eg health care and safety
59
What is income
The amount someone earns in certain period of time
60
What is wealth
The total value of assests you own
61
What is a quintile
A 20% chunk of population bases on wealth or income
62
What is the gini coefficient
A number that tells us how evenly income is shared in a country. The closer to 0 the better
63
What is a mortgage
A loan for a person to by a house
64
What is the principal
The amount you still owe the bank
65
What is interest
The cost of borrowing money. Paid monthly to the bank on top of principal payments
66
What is the monetary policy
A strategy used to keep inflation rates steady
67
How does the monetary policy work
The RBA changing the cash rate to then cause increase in spending or a decrease in spending
68
How many times does the RBA meet a year, and how much can they change the cash rate by
8, and they can change it in 0.25 increments
69
What is the cash rate
The interest rate the RBA charges to banks
70
List the steps of the monetary policy
If the inflation is too low, the RBA decreases cash rate, people then borrow more and save less increasing consumption and this increases inflation. If the inflation is too high the RBA increases the cash rate and people borrow less and save more decreasing consumption and decreasing inflation
71
How does the cash rate affect savings
If the cash rate is high saving will earn more interest, if it is low then they will earn less
72
What is expansionary monetary policy
When the RBA wants to encourage spending and increase inflation, it involves lowering the cost of borrowing and lowering the interest earned in savings
73
What is contractionary monetary policy
When the RBA wants to discourage spending and decrease inflation, it involves increasing the cost of borrowing and increasing the interest earned in savings
74
What is fiscal policy
When the government changes the type and amount of spending and taxation in the country to manage GDP, inflation, and unemployment
75
Who is in charge of fiscal policy
The federal government, specifically the treasurer and the prime minister
76
What is the aim of the fiscal policy
To stabilise the economy during booms and busts
77
What is expansionary fiscal policy
When the government wants to make the busts less extreme. It involves decreasing taxation and increasing government spending. The increase in government spending will create more jobs and the decrease in taxes will make everyone have more money and increase demand
78
What is contractionary fiscal policy
When the government wants to make the booms less extreme. It involves increasing taxation and decreasing government spending. The increase in government spending will decrease the amount of jobs and the increase in taxes will make everyone have less money and lower demand
79
What is the governments main sources of revenue
Income tax (48%), company tax (21%) and GST (12%)
80
What is the government main areas of spenditure
Social security (36%), health (15%), education (7%), defence (6%)
81
How do you calculate income tax
Determine marginal tax bracket, find out how much money they make in the top tax bracket, multiply by the tax rate and add the answer to the amount of tax before the tax bracket
82
What is marginal tax rate
The highest percentage rate of tax you pay
83
What is labour productivity
The amount of G+S that a worker produces in a given time
84
What does an increase in the labour productivity do
It increases frim revenue, and it also increase GDP
85
How does employment, and education affect living standards
Employment affects living standards because when people are unemployed they can't but as much things and they are under financial pressure. Education affects living standards because it increasing earning potential and access to better jobs, allowing people to gain more money and spend it.
86
What is the link between macroeconomic performance and living standards
When macroeconomic performs well living standards are high as their is less unemployment, higher GDP and a good level of inflation
87
What are some countrys with high and low gini coefficients
High are south africa, colombia and botswana. Low are slovenia, slovakia and uk
88
What is a quintile
5 groups of 20% that show how income or wealth is distributed among a population
89
Is wealth or income unevenly distributed
Wealth
90
What does income inequality contribute to
Wealth inequality in the long term
91
What are 2 policies the gov uses to decrease income inequality
Raising taxes in the upper tax brackets, and increasing social security payments
92
what is macroeconomic gov policies and what is microeconomic gov policies
Macroeconomic government policies focus on the overall economy, like economic growth, inflation, and unemployment, while microeconomic policies target specific sectors or markets improving effiecieny or failures
93
How does labour productivity increase GDP
It increases GDP because GDP is the total value of final goods and services produced in a given time, and labour productivity is how many goods and services a worker can produce, so the higher the labour productivity the higher GDP
94
How can businesses increase labour productivity
Staff training, work felxibility, increased capital equipment
95
What are two australian policies used to improve producitivty in the work place
Tax incentives for business to invest in new capital, funding research, and paying for education
96
When was the Paris Peace conference held and who attended?
It was held from Jan 18 1919 to Jan 21 1920, Woodrow Wilson (USA), David Lloyd George (UK), Georges Clemenceau (France), Vittorio Orlando (Italy)
97
Identify when the TOV was signed
June 28 1919
98
Outline the main aims of the TOV
To make germany accept the blame for starting the war, make germany pay for the damages called reparations, restrict their army and limit germanies territory
99
Describe what the league of nations was
A international organization formed after WW1 to promote peace and cooperation between countries
100
Identify the main aims of the league of nations
To prevent war, improve lives, reduce countries armed forces and weapons, enforce the TOV
101
Identify 3 things the league of nations achieved
It stopped border disputes turning into war eg sweden and finland fighting over Aaland islands and improved peoples lives eg taking 400,000 prisoners of war home and setting up refugee camps and fought diseases like malaria
102
Explain why the league of nations failed
The US never joined and countries like Germany and the USSR joined late or were banned, it had no army, it was slow and failed to stop aggression
103
Identify key features of the 1920's in America
Technological advancements, mass production, social changes, expanding cities
104
Outline the causes of the Great Depression
Stock market crash, bank failures, over production and unequal wealth distrubution
105
Outline the effects of the Great Depression in America and beyond.
Unemployment sky rocketed, banks failed and people lose savings, people went homeless and couldn’t feed themselves, decline in production, economic downturn, collapse of international trade
106
Define fascism.
One leader or group controls everything in a country and wants everyone to be loyal to their country
107
Explain the main causes of World War 2
TOV, Nazi party, failure of LoN, militarism and expansionism, appeasement, economic problems,
108
What is appeasement and what was the munich agreement
Appeasement is when concessions are made to avoid conflict and war, the munich agreement was a policy of appeasement where countries allowed Hitler to take part of Czechoslovakia to prevent war but it didn’t stop him from starting WW2
109
What were the four main aims of the nazis policy
Create a totalitarian state and control all aspects of life, racial purity and promoting Aryan race, rebuild germanies military strength and expand german territory, abolish TOV
110
Explain the strat of blitzkrieg
A fast and powerful military strategy used by the Nazis, it involve quickly attacking all at once, using speed and to surprise opponents and move deep into enemy territory before they can attack
111
Outline pearl habour
December 7, 1941, Japan launched a surprise attack on the naval base at pearl habour, this was to weakend the US pacific fleet, US entered the war the next day, it failed aswell as their fleet wasnt even their
112
Outline the fall of Singapore
February 1942, Japan forces attacked Singapore and defeated British forces, Japan used surprise attacks to win, Singapore was a major naval base for Britain and was a huge shock
113
What were the key features of australias ‘home front’
Women worked in factories and farms, conscription was introduced and many Australians joined, civil defence in preparation, community support to raise money, food and labour shortages as men left their jobs
114
When did Germany surrender
May 7, 1945
115
When did Japan surrender
August 15, 1945
116
Define propaganda and explain its purpose
Information or ideas spread by a group to influence people opinions often by presenting things in a biased way to gain support, its purpose is to influence people thoughts and beliefs to get support and damage reputation of enemy
117
Identify key features propaganda
Emotional appeal, bias and exaggeration, simplification, repetition, symbols and slogans, target audience
118
What is bias
When someone shows unfair preference toward a person group or idea, for example one political party might only show the good side of something and ignore the bad that is bias
119
What is the historical context of a source
Asking you what is the major event person or idea that is being presented, outline what event the source is about and say when it happened, who was involved and the consequences or outcome of the event, use examples
120
What is the purpose of a source
Asking you what the author wants the reader to think/feel, a source can have multiple purposes, also not why the author wants us to think this way and who is the main audience, use examples
121
What is the message of a source
Asking what the author is saying about a particular person idea or event, what the author is telling the audience, use examples
122
Asking you what is the major event person or idea that is being presented, outline what event the source is about and say when it happened, who was involved and the consequences or outcome of the event, use examples
What is the historical context of a source
123
Asking you what the author wants the reader to think/feel, a source can have multiple purposes, also not why the author wants us to think this way and who is the main audience, use examples
What is the purpose of a source
124
Asking what the author is saying about a particular person idea or event, what the author is telling the audience, use examples
What is the message of a source
