Test No.1 Flashcards
(22 cards)
What are the main sectors of the circular flow model?
Government, Businesses, Financial, Household
Draw the Circular flow model
Check Book for answer…
What are the four factors of production?
Land, Labour, Capital, Enterprise
What is Land?
All naturally occurring resources as well as land where it is produced.
What is Labour?
Labour is the efforts to produce a good or service. Usually by a person
What is Capital?
Capital is the physical or financial resources used to produce a good or service.
What is Enterprise?
Having the idea of how to use the land, labour and capital to make a profit by selling
What are the three economic questions?
What should be produced?
How to be produced/distributed?
Who will consume it?
What are indications of economic performance?
Unemployment Rates and Inflation Rates
How is unemployment rates an indicator of economic preformance?
If the unemployment rates are really high then there are lots of people that are unemployed and can’t afford to purchase things and be a consumer. If unemployment rates are really low then the workers have the power and can control their wages and where they work. It is harder to find a quality worker. We want 3-4%.
How is inflation rates an indicator of economic performance ?
When inflation Rates are high then it is harder for the average consumer to buy there wants and needs. If inflation rates are low, intrest is low and there will be a recession if the government cannot turn it around.
What is a recession?
A significant, widespread and prolonged inactivity of the economy.
What is import?
An import is a good or service made in one country and bought and taken to another (yours so Australia)
What is an Export?
An export is something that is made in your county (Australia) and sold and taken to another country.
What is a Tariff?
A tax imposed by one country’s government on imports inside the country.
Who are Australia’s trading partners?
China
US
South Korea
Japan
Singapore
What are Australia’s most popular export items?
Iron Ore
Coal
Petroleum
Gold (and other minerals?
What are Australia’s most popular imports?
Refined Petroleum
Cars and delivery trucks
Broadcasting equipment
Computers (and other technology)
Pharmaceutical Items
What global Event Impacted the Economy?
COVID-19
How did that global event impact the economy? Was it positive or negative?
It was a negative impact. It lost Australia around $9.2 billion dollars in 2022, which is approximately one quarter of Australia’s real Gross domestic product per year. This doesn’t account for healthy workers taking leave when they are caring for others. NEED TO LINK TO AUSTRALIAN ECONOMY!!!
What are positives of tourism?
- Creates Jobs
- Increases income flow
- New infrastructure is needed
- Old buildings are preserved
- Tax collected form tourism goes to building better roads, schools and other infrastructure
What are the negatives of tourism?
- More land is being used for short term accomodation and not for the growing population
- Pollution
- Corrosion of ecosystems
- Overcrowding
- Traffic
