3.3 Inflation Flashcards
what is inflation
The rate of increase in the price of goods and services.
Australia’s inflation figures:
2021 - 3.5%
2022 - 7.8%
2023 - 4.1%
summarise inflation
Inflation is another important measure of economic performance.
As prices increase, consumer spending power decreases Living standards fall
Increases in local prices also make it difficult for Australian businesses to sell overseas.
what is the consumer price index
CPI is the measure used in Australia to gauge the level of inflation.
It is measured by calculating the average percentage price increases of a ‘basket’ of consumer items typically used by Australian households.
CPI figures are compiled by the Australian Bureau of Statistics (ABS).
what is minimum wage
Minimum wage is an employee’s base rate of pay for the ordinary hours worked
Ensures that employees protected and given a fair and reasonable pay to live on.
The Fair Work Commission determines the minimum wage in Australia.
Current minimum wage in Australia is $19.49.
what are government funded services
Examples of government-funded services include education, health , benefits and essential services, such as fire and police
what are goverment payments
Both state and federal governments provide different types of support and payments for people who may struggle to maintain sufficient living standards (e.g. Family Tax Benefit, Rent Assistance, etc.)
what is taxation
People contribute to revenue in a fair and equitable manner.
Taxation system aims to generate sufficient revenue to provide services that the community expects and to support a fair society.
Taxation revenue is also used to sustain and stimulate the economy.
