Economy

Question 1

Expansion (recession->boom)

Answer 1

Increased- levels of production, consumer spending, inflation, wage rates, interest rates
Decreased - unemployment

Question 2

Inflation/purchasing power

Answer 2

During a boom - rise in price (value of money decreases)

Question 3

High interest rates results in…

Answer 3

Saving (less borrowing)

Question 4

Low interest rates results in…

Answer 4

Spending (less saving more borrowing)

Question 5

Australia has a … Economy

Answer 5

Mixed

Question 6

Balance of trade

Answer 6

Difference between a country’s imports and its exports

Question 7

Comparison rate

Answer 7

Loan interest rates after adding fees and charges to the advertised rates

Question 8

Standard of living

Answer 8

Quality of life measured by the amount of goods and services available for purchase with an income

Question 9

Business cycle

Answer 9

Cyclical fluctuations in the general level of economic activity

Question 10

Default

Answer 10

Inability to repay a loan

Question 11

Contraction (boom->recession)

Answer 11

Decreased - levels of production, consumer spending, wages rates, interest rates, inflation
Increased unemployment