intro

Question 1

Economy

Answer 1

An economy is just a collective term for all households, businesses and the governments in a particular area. Economies have to make choices just like your household does.

Question 2

Economic agents

Answer 2

individuals and organisations that participate in the economy, and make economic decisions.

Question 3

private sector

Answer 3

Consumers and businesses

Question 4

public sector

Answer 4

include local, state and federal governments, government business enterprises (GBEs) such as Australia Post, and statutory authorities such as the Reserve Bank of Australia (RBA) and the Australian Competition and Consumer Commission (ACCC).

Question 5

microeconomics

Answer 5

Microeconomics is the studies about the behavior of individual economic units, such as individuals, families, companies and the markets in which they run.

Question 6

macroeconomics

Answer 6

Macroeconomics takes a wider ‘bird’s-eye’ look at the whole economy and the larger flows affecting overall economic conditions in the country: booms, when the economy is growing too fast, or recessions, when there is a downturn in the economy.

Question 7

positive economics

Answer 7

Describes the facts without making value judgements or opinions.
It’s responsible for understanding economic phenomena.
How things are.

Question 8

normative economics

Answer 8

Describes the facts and makes value judgements.
Formulates and states the desirable reality.
How things should be.

Question 9

Factors of production

Answer 9

• land
• labour
• capital
• entrepreneurship

Question 10

gdp meaning?

Answer 10

gross domestic product = total val of final g/s produced by a nation per year

Question 11

gdp per capita

Answer 11

real gdp/total population