Economics Issues Report

Question 1

Define Economic Growth

Answer 1

An increase in the amount of produced goods and services per head of the population over a period of time.

Question 2

Define Sustainable Economic Development

Answer 2

A rate of growth that can be maintained without creating any more significant economic problems, especially for future generations.

Question 3

Define Carbon Tax

Answer 3

A tax on fossil fuels, especially those used by motor vehicles, intended to reduce the emission of carbon dioxide.

Question 4

Define Negative Externalities

Answer 4

The cost that is suffered by a third party as a result of an economic transaction. The first and second party’s are the producers and consumers with the third party consisting of any individual, organisation, property owner or resource that is indirectly affected.

Question 5

Define Carbon Footprint

Answer 5

The amount of carbon dioxide released into the atmosphere as a result of the activities of a particular individual,organisation, or community.

Question 6

Define Economic Boom

Answer 6

A boom is a period of rapid economic expansion resulting in higher GDP, lower unemployment and rising asset prices.

Question 7

Define Aggregate Demand

Answer 7

The total demand for final goods and services in an economy at a given time, it specifies the amounts of goods and services that will be purchased at all possible price levels.

Question 8

List the Components of the Aggregate Demand Equation

Answer 8

AD=C+I+G+X-M
C-Personal Consumption Expenditure I-Private Investment Expenditure
G-Government Consumption Expenditure/ 
Government Investment Expenditure
X-Exports  M-Imports

Question 9

Personal Consumption Expenditure

Answer 9

Household spending designed to satisfy needs and wants

Question 10

Private Investment Expenditure

Answer 10

The spending by businesses on machinery and buildings used to make other services.

Question 11

Government Consumption Expenditure/ Government Investment Expenditure

Answer 11

Government outlays designed to help satisfy the needs and wants of a community.

Question 12

Exports

Answer 12

The expenditure by people overseas on Australian Goods and services.

Question 13

Imports

Answer 13

Expenditure by Australians on foreign made goods and services.

Question 14

Define GDP

Answer 14

GDP is the monetary value of all the finished goods and services produced within a countries borders in a specific time period, usually measured annually. GDP stands for gross domestic product.