-Falling levels of production - Rate of inflation may fall - Wages fall - Unemployment rises - Interest rates fall - Decreased consumer spending
Explain the importance of the circular flow of income
It shows connections between the 5 different sectors of an economy: consumers, businesses, financial institutions, government, overseas sector.
What factors other than price cause changes in demand?
Complementary Goods, Taste, Income, Predicted Future Price and Substitute
What is a market?
Any situation in which buyers and sellers come together to exchange goods or services
What is globalisation?
Globalisation is the process by which the world is becoming increasingly interconnected as a result of increased trade and cultural exchange
definition of the term ‘globalisation’
(b) the process that sees people, goods, money and ideas moving around the world faster and more cheaply than before
List at least 4 key points evident in Boom Cycle (expanding economy)
Falling unemployment Increased economic growth Rising inflation Consumer confidence returns Spending increases Increased business profits Bs increase production
Identify the 5 sectors of the economy.
Consumers, businesses, financial institutions, The government, and overseas sector.
What is one role of the government in protecting consumers?
Ensure the financial protection through regulation
What is the business cycle
The business cycle refers to the different stages of economic growth, the different stages are: recession, contraction, depression and boom
Q) How many sectors are in the circular flow of income
A) 5
What are Capital Gains?
Profits earned from the sale of stocks, bonds, or other investments
What is the difference between a recession and a depression?
A depression is a more severe economic downturn than a recession
What does RBA stand for?
Reserve Bank of Australia
True or false? In a recession businesses compete for scarce labour resources, therefore employees are in a strong bargaining position.
False
What is the labor force?
Number of people who are employed plus the unemployed who are looking for work.
Define Externalities
Anything not accounted for by the buyer or the seller.
Which of the following is NOT a factor of production? A) Labor B) Capital C) Entrepreneurship D) Demand
D
What type of business size is Brent's dog grooming
Micro
What does CSR stand for and what do they do?
CSR stands for Corporate Social Responsibility CSR is a management concept for businesses consider the interests of stakeholder, society and the environment
What major financial event occurred in 2008
2008 Global Financial Crisis
Employment opportunities are increasing. What point of the B cycle?
Expansion
Adam Sandler was recently spotted wearing the newest Jordan 1s. Which supply and demand graph below best suits this situation?
A
How many people are in a small business
5-19
What is environmental degredation?
The deterioration of natural environment caused by things such as pollution and habitat destruction.
Which of the following is NOT an example of a macroeconomic indicator? A) Gross Domestic Product (GDP) B) Consumer Price Index (CPI) C) Unemployment rate D) Stock price of a single company
Stock price of a single company
What are Australia's Top 3 Trading Partners (Hint: All in Asia)
China, Japan, South Korea
What are Exports
Australian goods sold to overseas countries
Wages and salaries start to decrease. What stage of the business cycle is this in
Contraction
Is saving an injection or a leakage?
Leakage (less money in circulation)
Who controls the RBA
its board
Q) What happens if leakages exceed injections?
A) Decrease in economic activities
What does ASIC stand for?
Australian Securities Investment Commission
What is the impact of a recession on consumer spending? A) Consumer spending increases B) Consumer spending remains the same C) Consumer spending decreases D) Consumer spending is unpredictable
C
What is a free rider?
Someone that uses something without paying (park, library, etc.)
Ten rupees is the equilibrium price for good X. If government fixes the price at Rs.5, there is:
A Shortage
What is the primary reason for the existence of trade barriers such as tariffs and quotas?
To protect domestic industries from foreign competition
How is inflation usually combatted?
Raising interest rates
Does Australia import or export the following: Doc Martens Boots
Import
What factors influence business decisions?
Technology, Business Cycle, Globalisation
Give an example of when businesses will borrow money?
Expand business (purchasing new equipment or relocating) - Starting a business
When was the global financial crisis?
September 2008
What Type of Business is Kfc
Large TNC
How are injections measured in the Five Sector Flow A. I+S+X B. G+S+I C. I+G+X D. E+G+S
C
Which of the following is an advantage of being self employed? A Can work own hours B Has decision making ability C Determines the type of work that they can complete D All of the above
Can work own hours Has decision making ability Determines the type of work that they can complete D All of the above
What are Stock markets
where stocks in public companies are bought and sold, raising money for expansion or Researh
What do injections and leakages assist with?
They help economists estimate the level of economic activity within an economy
Does Australia import or export the following: Doc Martens Boots
Import
Difference between an ltd and a pty.
A Pty is for private businesses whereas ltd is for public businesses.
Fill in the blanks for all numbers
1. Investment 2. Overseas Sector 3. Government 4.Expenditure Injections
How are leakages measured in the Five Sector Flow A.S+T+M B. S+G+I C. X+M+G D. S+I+X
A
What are the 3 government sectors?
Local, State, Federal
What is economics
all the activities undertaken for the purposes of production, distribution and consumption in an economy
What are leakages in the economy?
Savings, taxation and imports.
Define Economics
economics is the study of allocation of scarce resources
What is a share?
Partial ownership in the capital stock of a corporation.
to identify the phase of the business cycle described. Unemployment is at its highest level.
Recession
What is the sector that includes Imports (M) and exports (X)
Does Australia import or export the following: Doc Martens Boots
Import
What happens to the economy, prior to a recession?
It contracts or is in contraction
What letter is used to symbolise Income
Y
Define scarcity
When there is a less-than-optimal supply of a resource in circulation
What is future market?
An organised market for buying and selling future contracts.
What is scarcity?
A high demand low production of goods or services.
What does the 5 sector flow model show?
How money goes in and out of an economy OR Shows how money is being distributed between the 5 sectors
Which of the following is an example of a tariff? A) A tax on income B) A tax on imported goods C) A tax on exported goods D) A tax on property
A tax on imported goods
What are Retail markets
• places where we buy most of our goods and services (shopping centres, shopping strips etc.) • includes online shopping, from Australian and international site
When an employer treats an employee differently because of race, sex or religion it is known as:
Discrimination
Which of the following best describes the term "liquidity" in finance? A) The ability to pay off debt B) The amount of cash a company has on hand C) The ease with which an asset can be converted to cash D) The amount of debt a company has
C
The process by which the world is becoming increasingly interconnected as a result of increased trade and cultural exchange is also known as what?
Globalisation
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