Economics Flashcards
Economics
The study concerned with the production, consumption, and transfer of wealth.
Disposable Income
The amount of money left over for non-essential spending once all household expenses are paid.
Scarcity
The gap between limited resources and theoretically limitless wants.
Opportunity Cost
The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
Inflation
The steady increase of goods & services that impact the cost of living.
The Ideal Rate of Inflation
2-3%
Focus Areas of Microeconomics
The demand and supply equilibrium, production theory, cost of production, labor economics, taxes, regulations and government legislation.
Focus Areas of Macroeconomics
Economic growth, foreign trade, government policies, unemployment rates, inflation, interest rates and Gross Domestic Product (GDP).
Opportunity Cost
The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
Wage Growth
A rise in the hourly wage of workers.
Household Savings Ratio
The percentage of total household income that is being saved and not spent.
Cash Rate
The interest paid by banks to other for overnight borrowing of money.
Australian Dollar Value
The purchasing power of the AUD against other currencies.
What are Economics Indicators in Australia?
This includes changes in inflation rate, wage growth, average weekly earnings, unemployment rate, household savings ratio, cash rate, and Australian dollar value.
Economic Policy
Government’s primary concern is to have a stable, efficient, effective operating economy at all times.
