Hass (Economics) Flashcards
Name three quantitive measures of economic performance indicators and how they are measured
GDP - The total value of a country’s goods and services produced
Inflation - The Consumer Price Index
Unemployment Rate - The number of residents without a job divided by the labour force then multiplied by a hundred to get a percentage
How Does GDP Impact different stakeholders in Australia
Governments - As economy expands so does tax
Business’ sales - As GDP increases so does the demand for goods and services
Workers/ Employees - As GDP increases so does job opportunities
How Does Inflation impact different stakeholders in Australia
Consumers - Inflation erodes the purchasing power of people’s money, their money buys less stuff
Workers/Employees - If wages do not keep up with inflation workers may experience a decrease in wages
Savers/Investors - Banks may adjust interest rates to try and control Inflation
How Does Unemployment Rate impact different stakeholders in Australia
International Trade: A domestic economic downturn may impact export demand, while changes in consumer spending can affect imports.
Investors: Economic uncertainty and reduced consumer spending may lead to concerns about the overall health of the economy.
Government: A high unemployment rate places a financial burden on the government through increased spending on social welfare programs such as unemployment benefits and other forms of assistance.
Name Three Qualitative economic performance indicators and how they are measured
Environmental Sustainability - Environmental performance Index (EPI)
Political Stability - he Political Stability Index which is often provided by organisations such as the world bank organisation
Happy planet Index - Surveys, Life expectancy, ecological footprint.
life satisfaction X Life Expectancy
———————————————— X 100
Ecological footprint
How Does Environmental sustainability impact different stakeholders in Australia
Government : Governments may need to implement measures to address environmental challenges, such as climate change, pollution, or water scarcity.
Risk Assessment: Businesses that are vulnerable to climate-related risks or environmental regulations may face financial challenges, impacting their attractiveness to investors.
Individuals and Communities: Air and water quality, exposure to pollutants, and the availability of natural resources can influence public health outcomes.
How Does political stability impact different stakeholders in Australia?
Businesses and Investors: A stable political environment provides businesses with the confidence to make long-term investments, leading to economic growth and job creation.
Government: Political stability enables the government to implement policies effectively.
Individuals and Households: Political stability contributes to a favourable economic environment, leading to job creation and increased employment opportunities.
How Does The happy Planet Index impact different stakeholders in Australia
Tourism Industry: A high HPI for Australia may positively influence the tourism industry by promoting the country as a destination that values the well-being of its citizens and is committed to sustainable practices.
Governments: The life expectancy component of the HPI can influence public health planning and policies aimed at enhancing the well-being and longevity of the population.
Educational Institutions: Educational institutions may incorporate the principles of the Happy Planet Index into their curricula to raise awareness about the importance of sustainability and well-being for future generations.
Define Material living Standards
Material living standards refers to the quality and quantity of material goods and services available to a given population
What Contributes To Material living standards
- Peoples Car’s
- The Income they earn
- People’s house
- The food they eat
- Their assets
What are non material living standards
Factors that affects a person’s life, regardless of income and cannot be measured in dollar terms
what contributes to non material living standards
- Freedom of Speech
- Access to health care and education
- Leisure Time
- Crime Rates
- Stress Levels
- Pollution levels
Define The Gini Coefficient
A statistical measure of income/wealth inequality within a population. Expressed as a single number from 0 being perfect equality to 1 being trash equality.
Define The Lorenz Curve
A graphical representation of the distribution of income or wealth within a population
Define progressive income tax
Progressive income tax is when the tax rate increases as the taxable income also increases
