Economics

Question 1

What is the labor force?

Answer 1

Labour Force: The Labor Force is the sum of employed plus unemployed persons available for the production of goods and services.

Question 2

Define productivity:

Answer 2

Productivity: The measures of what can be produced (output) from a given amount of resources. Higher productivity means producing more output without increasing input.

Question 3

Define Positive Externality:

Answer 3

Positive Externality: When the production/consumption of a good/service benefits other people.

Question 4

Define Positive Externality:

Answer 4

Negative Externality: When the production/consumption of a good/service negatively impacts other people.

Question 5

What is the Progressive Tax System?

Answer 5

The Progressive Tax System is the way in which those who earn higher wages are taxed more than those who earn lower wages.

Question 6

What is ‘Bracket Creep’?

Answer 6

‘Bracket Creep’ refers to how tax brackets change due to inflation and wages going up, meaning people may end up in a higher tax bracket.

Question 7

What is the Wellness State?

Answer 7

The Welfare State is when the Government protects and promotes the economic and social well-being of the citizens. It is based upon the principals of equal opportunity, equitable distribution of wealth, and a public responsibility for citizens unable to meet the minimum standards for a good life.

Question 8

Name some Economic Indicators:

Answer 8

• Economic growth rate (% increase in GDP)
• Unemployment Rate
• Inflation Rate
• Human Development Index (HDI)
• Better Life Index
• Sustainability Index

Question 9

How do taxes help the poor?

Answer 9

• Welfare Payments (Centrelink)
• Public Goods and Services (Schools, Hospitals)
• Progressive Tax (taxing the rich more)
• Compulsory Superannuation
• Compulsory minimum wage
• Programs to promote growth (employment programs)