Federal Budget & Trade Flashcards
What is a revenue?
Money that the government receives.
What is the federal budget?
A document the demonstrates the anticipated value of revenue and expenditure for the federal government for the next financial year.
What is expenditure?
Money that is spent by the government.
What is a surplus?
When the revenue exceeds expenditure, the budget is said to be in surplus.
What is a deficit?
When the expenditure exceeds the revenue.
Who is responsible for preparing the 2014 Federal Budget?
Joe Hockey (Treasurer)
What political party does Joe Hockey belong to?
Liberal Party
What are the two greatest sources of revenue for the federal government?
Individual Income Tax ($183.6 billion)
Company and Resource Rent Tax ($75.3 billion)
What are the two largest areas of expenditure?
Welfare ($145.8 billion)
Health ($66.9 billion)
What is Australia’s highest imports?
Petrol, Cars, Gold and Medicine
Who does Australia import from the most?
China, USA, Japan and Singapore
What are Australia’s highest exports?
Coal, Iron Ore, Education and Gold
Who does Australia export to the most?
Japan, China, Korea, India and USA
What is a tariff?
A tax on imported goods
What is trade?
The exchange of goods and services between nations
What is a multinational corporation/company?
Organisations that operate in more than one country; their head office is based in one country but they have branches in other countries.
Why are multinational corporations/companies so successful?
Ability to raise funds from a much wider range of sources
Cheaper manufacturing costs in specific countries (eg. China)
Economies of scale
What is economies of scale?
The ability to reduce the ‘per unit’ price of a product made due to increased production runs
What is the Financial Year?
July 1-June 31
