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Year 12 term whatever the one before trial is Flashcards

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1
Q

What is the infant industry curve

A

It argues that new industries need assistance when they first start, due to the benefits of economies of scale already achieved by existing foreign industries

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2
Q

Dumping

A

Dumping occurs when a country sells a product that are temporarily overstocked at below the normal market price

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3
Q

What is a local content rule

A

Local. content rules state that a certain percent of the product should be domestically produced otherwise there. maybe tariffs put on the product

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4
Q

What is an example of an export incentive

A

The most common export incentives are the agriculture subsidies given to farmers in the EU and the USA.

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5
Q

What is a bilateral agreement

A

This is a trade agreement between two countries.

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6
Q

What is a multilateral agreement

A

This is a trade agreement between three or more countries

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7
Q

What is a trading bloc

A

This is a trade agreement that has no tariffs or other protection policies between the members. An example of this is the European Union

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8
Q

What is economic growth

A

Economic growth is a sustained increase in a nation’s output over time, generally measured as real Gross Domestic Product per Annum.

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9
Q

How to calculate Aggregate Demand

A

Y = C + I + G + X - M where C is consumption, I is an investment, G is government expenditure and X-M is net exports

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10
Q

How to calculate the unemployment rate

A

unemployed/labour force

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11
Q

How to calculate the participation rate

A

Labour Force/Working age population

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12
Q

What are the 7 types of unemployment

A

Cyclical, structural, frictional, seasonal, underemployment, hidden, long term

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13
Q

What are the costs of unemployment

A

Loss of output, Loss of human capital, Larger budget deficits, An increased crime rate, Increased stress on individuals and families and a loss of human dignity/social conflict

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14
Q

What does the fair work act of 2009 do for employees

A

This restores. bargaining power of employees with new general protections. for employees as well as:

  • The establishment of the fair work commission
  • Increasing the safety net through the Modern Award
  • Providing bargaining assistance for the low paid
  • The establishment of unfair dismissal
  • 3 types of agreements
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15
Q

What is the Current Account?

A

This is the part of balance payments that show the receipts and payments for trade in goods and services, transfer payments and income flows between Australia and the rest of the world in a given time period and are. nonreversible transactions

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16
Q

What does terms of trade measure?

A

This measures the relative movements in the price of economies imports and exports over a period of time.

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17
Q

How to calculate the terms of Trade Index

A

Export price ( index/import price index ) x 100

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18
Q

How to calculate economic growth

A 
Real GDP (Current Year) - Real GDP (Previous Year)
-----------------------------------------------------------------------------
                            Real GDP (Previous Year)
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19
Q

What is Aggregate Demand (AD)

A

This is the total level of expenditure in an economy over a given period of time, it includes consumption, investment, government spending, and net export spending

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20
Q

What is Aggregate Supply (Y)

A

This is the total level of income in an economy over a given period of time. Part of national income is collected by the government through taxation, and the rest is either spend on consumption or is saved.

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21
Q

How to calculate Aggregate Demand?

A

AD = Consumer spending + Investment spending by businesses + government spending + (Export revenue - Spending on imports)

or

AD = C + I + G + (X - M)

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22
Q

How to calculate Aggregate Supply?

A

Y = Consumper spending + Savings + Taxation

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23
Q

What is the Average Propensity To Consume (APC)

A

This is the proportion of total income that is spent on consumption

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24
Q

What is the Average Propensity To Save (APS)

A

This is the proportion of total income that is not spent but is saved for future consumption.

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25
What is the Marginal Propensity To Consume (MPC)
This is the proportion of each extra dollar of income that is spent on consumer products
26
What is the marginal propensity to save (MPS)
This is the proportion of each extra dollar of income that is saved
27
How to calculate MPC
Change in consumption/ Change in income
28
How to calculate MPS
Change in Savings/ Change in Income
29
How is an economys aggregate supply determined
It is determined by the quantity and quality of the factors of production, natural resources, labour, capital and the ability of entrepreneurs to turn that into goods and services. Economists refer to aggregate supply as an economic potential, this means that when aggregate supply increases, so do the economic potential to grow faster.
30
How can aggregate supply be increased?
* Population growth: More labour to produce more goods and services. * Discovery of new resources: New mineral deposits etc, allow more goods and services to be produced. * More skilled workers: Labour will be able to complete jobs faster and more efficient. * Increased Capital: More efficient production * New Technology: New efficient technology increases the ammount of goods and services made or increases profit. * Government Policies: Loose regulations and taxes allow goods and services to be made with higher profits.
31
What is Fiscal Policy
This is the use of the budget in order to achieve economic objectives. Government expenditure through the budget represents an injection, whilst taxation is a leakage.
32
What is monetary Policy?
Monetary policy is the RBA influencing the level of interest rates in the economy, which in turn influences the level of aggregate demand and the rate of economic growth.
33
What is the labour force?
This is people aged 15 and over who are currently employed for at least 1 hour per week of paid work. This does not include full-time nonworking students above 15.
34
What is the labour force participation rate?
This is the percentage of the population that are in the labour force out of the people that can be in the labour force.
35
How to calculate labour force participation rate?
Labour force ----------------------------------------------- The working-age population (15+)
36
What is unemployment?
These are the number of people who do not have a job but are actively seeking work. This can be looking at advertisements, registering with an employment agency or responding to employers.
37
How to calculate unemployment?
Number of persons unemployed ------------------------------------------------ Total Labour Force
38
What are the main types of unemployment?
``` Structural unemployment Cyclical Unemployment Frictional Unemployment Seasonal Unemployment Hidden Unemployment Underemployment Long Term Unemployment Hard Core unemployment ```
39
What is structural unemployment
This is not their fault. It is because their skills are redundant
40
What is cyclical unemployment
This is not their fault. It is the economy fault
41
What is frictional unemployment
This is people who are in the middle of switching jobs.
42
What is seasonal unemployment
This is people who are fired due to their job is only needed in the summer or winter. For example, a swimming store fires many workers in the winter.
43
What is hidden unemployment
These are people who are unemployed but are not seeking for a job so do not count as unemployed.
44
What is underemployment
These are people who work less than 35 hours per week but want to work more. This represents 8% of the current work force.
45
What is long term unemployment
These are people who have been unemployed for 12 months or longer which is usually due to their skills are now redundant.
46
What is hardcore unemployment
This are people who have been unemployed for so long, that employees consider unemployable due to their personal circumstances. This includes mental issues and disabilities.
47
What are labour market policies?
These are policies that governments extend education and training programs to people who are out of work or risk being unemployed in the near future. For example the government could pay the tafe fees for an individual in order to get him a job. This allows the government to begin earning money through wage taxes once again.
48
What is the consumer price index (CPI)
This summarises the movement in the prices of a basket of goods and services weighted according to their significance for the average Australian household. It is used to measure Inflation in Australia.
49
How to calculate the inflation rate
Consumer price index (current year) - CPI(previous year) ---------------------------------------------------------------------------------- Consumer Price Index (Previous year)
50
What is external stability?
This is an aim of government policy that seeks to promote sustainability on the external accounts so that Australia can service its foreign liabilities in the medium to the long run and avoid currency volatility.
51
What is the Current account deficit (CAD)
A key measure of an economy's external stability is the CAD as a % of GDP. The CAD as a % of GDP is the best measure of trends in the current account over time, rather than the size of the CAD in dollar terms. Using this measure allows an accurate comparison across time and between countries.
52
What is Net Foreign Liabilities
These reflect Australia's total financial obligations to foreigners, minus the total financial obligations of foreigners to Australia. There are two components of net foreign liabilities. These are net foreign debt and net foreign equity.
53
How to calculate Net Foreign Debt
It is the total stock of loans owed by Australians to Foreigners, - the total stock of loans owed by foreigners to Australians.
54
How to calculate Net Foreign Equity
This is the total value of assets in Australia, such as land shares and companies in foreign ownership, - Total value of assets overseas that are owned by Australians.
55
What is Mean Income?
This is the average level of income. It is calculated by dividing the total income of a group by the number of income recipients in that group.
56
What is Median Income?
It is the level of income that divides the income recipients in a group into two halves, one half being incomes above the median, and the other half having incomes below the median.
57
What is the GINI coefficient?
The GINI coefficient is a single statistic that summarises the distribution of income across the population.
58
How to calculate the GINI Coefficient.
area between the lorenzo curve and the line of equality, --------------------------------------------------------------------------------- Total area under the line of equality
59
What are some sources of income and wealth?
* Wages and Salary * Rent From Land they own * Investment funds and bank deposits * Funds from business * Social welfare
60
What are the costs of inequality
* Inequality reduces the overall utility of money. * Inequality reduces economic growth as the wealthy have a higher propensity to save as they cant spend it all, whilst the poor have a high propensity to consume. * Inequality creates bad consumption as the wealthy buy things like designer clothes to flex their wealth and that it. It is a waste of money and could be used to help the poor. * Inequality creates relative poverty. This may reduce the labour force participation rate. * Inequality increases the cost of welfare support as there is more people on welfare. This money could have been redistributed to other areas of the country.
61
What are the benefits of inequality?
* Inequality encourages the labour force to increase education skills in order to get a job to get out of their position. * Inequality encourages poor to work harder * Inequality can make the labour force more mobile as they are desperate to get a job. * Inequality encourages entrepreneurs to take more risk to be rich, not poor.
62
What is Net foreign liabilities?
Net Foreign Liabilities is the amount of debt and equity borrowings a country owes overseas minus what is owed to that country.
63
How to calculate the unemployment rate
Unemployment/labour force
64
How to calculate the GDP
Nominal GDP divided by CPI
65
What is the multiplier formula
k = 1/MPS
66
What was chinas real GDP growth
7%
67
What is the current account deficit right now
-3%. This was due to a 5 billion dollar fall in bogs and 11 billion increase in the net primary income deficiet
68
How has australias economy been growing
2018 it was growing by a nice 1%, after corona the economy has shrunk by 0.3%
69
How is Australias inflation
This shit has been going down. It has dropped by 0.5% in the past 2 years and is now around 1.4% This is bad as the target is 2-3% so our economy be sucking dick
70
Australias unemployment
around 5% was unemployment rates in 2018. Now they are around 7.2% This shit be suckin cuz corona be suckin
71
What is the RBA interest rate
0.25% it was around 1.5% so they have lowered it to stimulate growth in the economy which has not worked
72
What is job keeper
Job keeper is a fortnightly payment of 1500 dollars before tax, given to workers through their employer, so they can stay employed and paid. This was to assist with corona so unemployment doesnt jump through the fucking roof

Economics (7 decks)

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