Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Economics
finished
| Term | Definition |
|---|---|
| High levels of economic activity | - Government may run a SURPLUS budget - Government will spend LESS to avoid stimulating the economy |
| Lows levels of economic activity | - Government may run a DEFICIT budget - Will spend more in the budget that it received in taxation revenue to stimulate the economy |
| Interest Rates and the effects of changes | - Changes of interest rates can affect the living standards - Demand for goods and services can be curbed - Consumers and business may devote money on loans rather than spending (OPPOSITE occurs when interest rates LOWER) |
| GDP (Gross Domestic Product) | Measure the performance of an economy - Measures a total value of goods and services over a period of time - if GDP is increasing, then the economy is growing |
| Importance of Economic Growth/GDP | - more goods and services produced - more employment - earning more money, means there's more to spend,. More spending means improved living standards |
| Limitations as a measure | - GDP fails to measure a worthwhile life in Australia - Producing more products can have undesirable environmental/social consequences |
| Business Cycle (DEF) | Refers to the recurring fluctuations in economic activity over time |
| Phases of the Business Cycle | - Boom (peak) - Downswing/recession (contraction) - Trough - Upswing (expansion) |
| Characteristics of economic 'BOOM' | - Above avg rate of economic growth - low unemployment - consumer + business confidence |
| Characteristics of economic ' DOWNSWING/RECESSION' | - Fall in economic growth - Lower level of income - less inflation - unemployment issues |
| Inflation (DEF) | Occurs when there is an increase in the level of prices paid for goods and services over a certain period of time |
| Current Rates of inflation in Australia | 5.4% (should be between 2-3%) |
| Causes of Inflation | - Consumer confidence - Business confidence (May expand and employ more) - Low interest rates (Encourages consumers to borrow more) - Lower taxes/increased government spending (Leads to increased demand and expenditure) |
| Impacts on the economy (inflation) | - Uncertainty (difficult to determine costs of products) - Non-productive decisions (Divert resources away from investment) - International competitiveness (When inflation is greater than overseas - exports are at a disadvantage) - Purchasing power |
| Employed | Occupations in which people work for other and get paid in return |
| Unemployed | Someone without a paid job, but is available to work |
| Workforce/Labour Force (def) | Total number of people employed, plus, the number of people seeking employment |
| Cash Rate in Australia | 4.35% |
| Unemployment Rate | 3.7% |
| Causes of unemployment | - Weak GDP - Decreased spending - Increased overseas competition |
| Frictional Unemployment | Freedom to choose occupation means that anyone can be in the process of switching jobs . Can cause weeks of unemployment |
| Cyclical Unemployment | Consumer may buy less -> causing investors to fear future losses Businesses may reduce output and employ less as a result |
| Technological Unemployment | - Machines used instead of labour |
| Structural Unemployment | - Lack of employment opportunities - Shortage of jobs in the economy |
| Seasonal Unemployment | - Some jobs only available in certain parts of the year - Such as working at festivals |
| Hard-core Unemployment | Unemployment causes by: Age, gender, handicaps, personal characteristics, etc |
| Productivity (def) | measures what can be produced from a given amount of resources |
| Labour Productivity (def) | Measures the amount of goods and services that a worker can produce in a given amount of time |
| Ways to increase labour productivity | management practice training workplace culture performance feedback |
| Capital Productivity (def) | measures the amount of goods and services that can be produced using a fixed amount of capital |
| Ways to improve capital productivity | technology improving processes |
| Material living standards | refers to access of physical goods and services - measured by the quality of goods and services available each year |
| Non material living standards | intangible - measured by assessing overall wellbeing things like: freedom of speech, free elections, etc |
| Full employment | relates to the RBA promoing an environment that supports full employment - occurs when there are enough jobs for people who are available/want to work - Even at full employment, some people still face unemployment from frictional or hard-core reasons |
| FTICAFD - Price | too low = consumers become suspicious of quality too high = product an be viewed as not worth the price |
| FTICAFD - availability of credit | influences decisions to spend - spending too much credit leads to debt and is common cause of bankruptcy |
| FTICAFD - age and gender | different needs and wants for different ages - marketers may specifically target men or women for products |
| Trade liberalisation (def) | involves opening up markets for free trade so countries can trade without restrictions - promotes efficiency |
| Deregulation (def) | Removal of government regulations in a certain area of the economy |
| Labour market reform (def) | Reducing of eliminating government power in an industry to promote better competition in that industry |
Created by:
cupidcore444
Popular Economics sets