Hass

Question 1

define house holds

Answer 1

The household sector consists of individuals who consume, save money, and pay taxation to the government.

Question 2

explain the role of households in the economy.

Answer 2

The role of the households is to consume goods & services, save money, give resources to firms, and pay taxes.

Question 3

Define businesses

Answer 3

A business is an organisation or enterprise engaged in the production and trade of g+s, usually for a profit. the business sector aims to make a profit off g+s and receive revenue and provide jobs for individuals. They must pay expenses from the revenue earned (rent, tax and wages). Businesses also pay taxes to the government.

Question 4

explain their role of businesses in the economy

Answer 4

Create jobs and income in the economy. They must pay expenses from the profit earned and to pay taxes to the government.

Question 5

Calculation of profits

Answer 5

revenue - tax/wages/rent = profit

Question 6

define financial sector

Answer 6

The financial sector is the middleman between savers and investors.

Question 7

define investment

Answer 7

Investment - when businesses borrow money when they need to expand their business.

Question 8

define mortgage loans

Answer 8

Mortgage loan - when consumers buy expensive items, they take out a loan called a mortgage loan and pay off the loan over time

Question 9

define credit

Answer 9

Credit - borrowing money with the promise that you will pay it off, often with interest.

Question 10

describe the role of the financial sector

Answer 10

The financial sector is made up of those who act as a middleman between savers and investors. such as banks when house holds invest.

Question 11

explain the role of the government in the economy

Answer 11

Governments use taxation revenue to provide goods and services such as schools & hospitals, pensions etc. They provide goods and services that are not profitable

Question 12

Define exports

Answer 12

Exports - Goods sold overseas

Question 13

define trade partner

Answer 13

Trade Partner- is used to describe an ongoing exporting or importing relationship.

Question 14

define imports

Answer 14

Imports - goods purchased from overseas

Question 15

Name Australia’s major 2-way trading partner, and what they export and import (you need to know the top 5 from each category

Answer 15

Exports :
China - Iron ores - 21.6
USA - coal - 11.5
Japan - natural - 10
Republic of Korea - Education travel services - 8.3
Uk - Gold - 5.1
Imports :
China - Personal travel services - 8.4
USA - Refined petroleum - 5.5
Japan - Passenger motor vehicles -4.8
Republic of Korea -Telecommunication Parts -3.8
Uk - Computers - 2.6

Question 16

Describe the way international trade affects Australia

Answer 16

Exports = money coming in to Aust
· Imports = money going out of Aust
·
· & the impacts on jobs income production

Question 17

Describe Australia’s trade relationship with China

Answer 17

The Australian economy receives a large amount of its money from the Chinese economy, mostly through imports, education and tourism. Recently China hit Australian industries with a raft of trade sanctions and accusations, effectively shutting trade down.

Question 18

Describe Australia’s trade relationship with UK

Answer 18

With the Uk Australia holds a FTA which is a free trade agreement. The benefits of this agreement include that it creates new export opportunities and jobs for businesses by eliminating tariffs on over 99% of Australian goods exported to the Uk. Both countries will offer enhanced opportunities to live and work temporarily in each other country.

Question 19

define leakages and injections

Answer 19

Leakages - are money flowing out of the economy
Injections - are money flowing into the economy

Question 20

calculate the equilibrium level of income

Answer 20

The equilibrium in the circular flow is that leakages should equal injections hence the equation is S+T+M = I+G+X

Question 21

Explain how different events impact the circular flow of income.

Answer 21

Taxes (T) imposed by the government reduce the flow of income.

Question 22

Define and provide an example of a global supply chain

Answer 22

A global supply chain is when a product is sourced/ made in different countries and imported to others before getting to the distributing country. an example of a global supply chain is Apple.

Question 23

Define globalisation

Answer 23

globalisation is the process by which individuals or businesses develop international influence

Question 24

Explain the linkages that exist between countries

Answer 24

Trade with other nations, Foreign investment, Income, Technology , Migration

Question 25

Define MNC and TNC with examples

Answer 25

MNC
multi corporations (MNCs) are those that operate in several countries but are managed from one (home) country.
TNC
transnational corporations are those that do business in more than one country and d not consider any particular country their national home.

Question 26

Explain the advantages and disadvantages of MNCs

Answer 26

Advantages:
Job Opportunities: MNCs create jobs in different countries.
Technology and Skills: MNCs bring advanced technology and knowledge to different countries.
Economic Growth: MNCs can boost the economy of a country.
Disadvantages:
Local Businesses Suffer: selling goods for cheaper prices making it hard for small businesses to compete.
Cultural Influence: MNCs can spread their culture and ideas, which might overshadow local traditions and values.
Profit Focus: MNCs might prioritise making money over helping people.

Question 27

Explain the advantages and disadvantages of TNCs.

Answer 27

Advantages:
Global Innovation: TNCs bring together smart people from different countries to create new ideas.
Knowledge Sharing: TNCs share information and skills across borders.
Efficiency: TNCs can use resources from different places, making production more efficient.

Disadvantages:
Lack of Control: TNCs can be so big that no single government can fully control them.
Inequality: TNCs sometimes create a big gap between rich and poor.
Environmental Impact: TNCs might harm the environment by polluting or using up natural resources.

Question 28

Circular flow of income

Answer 28

draw and look at picture to check.