Economics Flashcards
Difference Material and nonmaterial living standards
-Material refers to access to physical goods and services, we drive the house we live in and the food we eat
-I material refers to the goods that cannot be measured in dollar terms are intangible cannot be touched perfect and joy meant to life, such as freedom of speech and religion
What is gdp
-Gross domestic product
-Want to take your goods and services available each year
The OECD better life index
OECD better life index provide a more characterized picture of the true living standard of 40 different countries by measuring progress based on 11 criteria is one of which is the environment
Relationship between income and living standards
Individuals who earn more tends to have a higher living standard, leads to higher cost of living, but better life.
How to get a better living standard economy
Economies of countries that give people the freedom to work and benefit directly from the labor we’re more likely to be wealthy compared to other countries
Economist Adam Smith view about wealth
Government should only play Limited role in the economy
Factors affecting both wealth
Trade, stability, war, labormresources
Teachers influencing consumers financial decisions all 6
-Price:
-Availability of credit: refers to how easy it is to borrow in other words whether you were able to obtain a loan
-Marketing:Company marketing method to influence consumers buy,
-age gender: Students and parents purchasing needs and wants are separated, and gender advertisements are too
- convenience: Items can save time and are easier to use
- ethical and environmental considerations: Many consumers wish to purchase products that have been produced in a way that is consistent with their belief in, what is right
Stronger economy leads to higher Living standards
Citizens of the country earning income for markets in services. Government revenue, earned taxes, paid by workers to benefit us all by using it on services, such as education and health care 
Examples of different Taxes
Income tax, employee income for Commonwealth government
Fringe benefits, employees receive in addition salary
Company tax, tax on company, profits
What is a Budgetary policy & 3types of budgets
Outlines the revenue that the government receives, and the areas In which it spends this revenue 
- balanced budget gov revenue is exactly = to expenditure
- deficit budget revenue less than gov expenditure
-surplus budget, revenue is greater than gov expenditure
Types of budgets
- balance budgets: Government revenue is exactly equal to the expenditure
- deficit budget: Government revenue is less than government expenditure. Simple terms means the government spent more than the revenue has received
- surplus budget: Revenue is greater than government expenditure means Government has more revenue, then it has spent
Who implements the momentary policy and effect of changing interest rates
-The reserve bank of AUS
-Changing the official interest rate ultimately affects the rate of interest paid on bank loan ,affect LS
- higher demand or spending in economy may lead to inflation, which prompt the rba into increasing interest rates to restrain spending and reduce inflation ( seesaw, continuous system)
Microeconomic policy, definition, examples
-Policy that affects a particular company, industry or a market they often focuses on promoting competition, productivity, and efficiency
-Trade liberalization,opening up markets for free trade, so that countries can trade without restrictions
-Deregulations is the removal of government regulations in a certain area of economy?
-Labor market reform, determining wages, and working conditions to a system where wages and working conditions are determined directly at the enterprise level between employers and employees
Migration, policy, definition, and benefits and costs of migration
-People apply to the Australian government to into the country. The government decides who is eligible to enter each year based on criteria, health skills, English education, age
-Migrants make a great contribution to quality of labour force which boost economic growth
-income distribution over 20 years stay the same
