Budget & Trade

Question 1

Define: revenue.

Answer 1

The money that is coming in to the government; the income a government receives. The most revenue comes from the individuals income tax.

Question 2

Define: calendar year

Answer 2

The one year period from January 1 to December 31.

Question 3

Define: financial year.

Answer 3

An accounting period that goes for 12 consecutive months. In Australia, from July 1 to June 30.

Question 4

Define: Budget

Answer 4

The anticipated value of revenue and expenditure for the Federal government for the next financial year. It is prepared by the Treasurer.

Question 5

Treasurer?

Answer 5

The Honourable Scott Morrison MP - Liberal

Question 6

Define: deficit

Answer 6

When the expenditure exceeds the revenue.

Question 7

Define: surplus

Answer 7

When the revenue exceeds the expenditure.

Question 8

Types of revenue?

Answer 8

Individuals income tax, superannuation tax, company and resource rent tax, fringe benefits tax, customs duty, non-tax revenue, sales tax, fuels excise, other tax and excises.

Question 9

Types of expenditure?

Answer 9

Education, general public services, defence, health, social security and welfare, and other functions and purposes.

Question 10

Changes to our budget?

Answer 10

As our expenditures have increased from last year, exceeding the revenue, welfare has tightened. Therefore low income earners may be affected. Encouragement of small businesses, so as to provide more jobs, has been done through dropping tax rates.

Question 11

Define: trade

Answer 11

The exchange of goods and services between nations. People have been trading for thousands of years.

Question 12

Define: imports

Answer 12

Goods and services purchased from an overseas seller and sold in the Australian market. These are purchased as we do not produce them efficiently or effectively.

Question 13

Define: exports

Answer 13

Goods and services produced in Australia and purchased by overseas countries. Australia is full of natural resources that are not as abundant in other counties.

Question 14

Who does Australia export to and what?

Answer 14

Japan, China, Korea, India, USA.

Coal, iron ore, gold, education.

Question 15

Who does Australia import from and what?

Answer 15

China, USA, Japan, Singapore.

Petrol, cars, gold, medicines.

Question 16

Define: multinational companies.

Answer 16

Organisations that operate in more than one country. Their head office is based in one country but they have branches in other countries. Eg. Microsoft, KFC, Coca-Cola, McDonalds.

Question 17

Reasons for growth of multinational companies?

Answer 17

• Economical to establish business in other countries as there may be cheaper manufacturing costs, due to low labour rates.
• Rapid advances in technology, have gained multinationals substantial market share.
• Economies of scale-ability to reduce ‘per unit’ price of a product due to increased production rates.
• Produced a product that is popular with consumers all over the world.

Question 18

Define: tariff

Answer 18

A tax on imported goods. These are implemented to protect producers. As tariffs make imports more expensive, importing goods is then discouraged.

Question 19

Define: expenditure

Answer 19

The money the government spends. This year, the area of most expenditure was social security and welfare.