Hass - Economics and Business Topics

Question 1

What does economic activity mean

Answer 1

all the actions involved in producing, distributing and consuming goods and services

Question 2

What does rising economic activity tend to be associated with?

Answer 2

Rsing standards of living.

Question 3

What are some economic indicators?

Answer 3

• The economic growth rate
• The unemployment rate
• The inflation rate
• The Human Development Index
• the Better Life index
• sustainability indexes

Question 4

What is GDP stand for and it’s definition?

Answer 4

Gross Domestic Product
- is the total value of the final goods and services produced in an economy in a year

Question 5

What goods and services are included and are not included in GDP

Answer 5

are:
clothing, cars

Not:
items made by one company but then bought by another company to add to a final product, such as tyres that come with a new car w

Question 6

What is Economic growth rate?

Answer 6

The percentage % change in GDP from one year to the next

Question 7

NOMINAL AND REAL (PG. 66)

Answer 7

nominal- with inflation and real without inflation

Question 8

What is the business cycle

Answer 8

The rate of economic growth which tends to move in waves.

Question 9

What is a recession?

Answer 9

The amount of goods and services produced falls each year and the ecomic growth is negative

Question 10

To be concisdered unemployed?

Answer 10

a person must currently not have job. be willing and able to work, and be actively be seeking work.

Question 11

What does the unemployment rate tell us?

Answer 11

the proportion of the labour force that is currently unemployed

Question 12

who are not included in the unemploment rate

Answer 12

• people who are not available for work such as :
  1. full time students
  2. stay at home parents

Question 13

what is the term which is used when describing people moving between jobs

Answer 13

frictional unemployment

Question 14

what is the lowest unemploment rate Australia can achieve

Answer 14

4.4-5%

Question 15

What does the inflation rate measure?

Answer 15

the rate at which teh genral level of prices in a particular economy has risen over a year.

Question 16

What is Australian govt target range of inflation

Answer 16

2-3% each year

Question 17

Why would a very low inflation rate be bad for the economy?

Answer 17

• difficlut for wokers to obtain wage increases

Question 18

Why si a high inflation rate alos bad for the economy

Answer 18

• reduces the coutry’s international competitiveness and reuces the purchasing power of people who’s incomes rise at a slower rate then inflation.

Question 19

Exeptionally high rates of inflation are known as

Answer 19

HYPERINFLATION

Question 20

What are some of the phrases of the business cycle

Answer 20

peak, downswing, trough and upswing

Question 20

The human Development Index is calculated by the United Nations based on 3 key variables:

Answer 20

• expected lifespan, education and average income in each country
• on a scale 0-1

Question 21

What does a higher HDI score suggest

Answer 21

a higher standard of living

Question 22

The Organsitaion for Ecomic Co-operation and Development (OECD) calculates:

Answer 22

the Better Life index

Question 23

HAVN’T DONE PG. 68