Money and Power test

What is economic scarcity

When there isn’t a sufficient amount of goods or services to satisfy all human wants and needs, leading to limited recourses and an increase in prices due to supply and demand.

What is the impact of economic scarcity?

Economic scarcity leads to increased competition for resources, higher prices, and prioritisation of resource allocation.

List the three types of economic resources

Land (natural resources), Labour (human resources), and capital (man-made resources)

Definition of goods and services

Goods = physical, tangible items that you can touch and store.

Services = intangible tasks, actions or work performed by workers to help others.

What is ‘opportunity cost’?

The value of the next-best alternative that you give up when you make a choice.

What are the three economic questions that economic systems attempt to answer.

What to produce, how to produce and from whom to produce.

What are the four kinds of economic systems

Planned economy, Market economy, Mixed economy and traditional economy.

Define the four kinds of economic systems

Traditional economy = A system based on customs, history, and time-honoured beliefs. People follow the traditional economic roles of their society, often relying on fishing, hunting and bartering.

Planned economy = A system where a government system controls the production and distribution of goods.

Market economy = A free market system that relies on the roles of supply and demand with no government control.

Mixed economy = a system that combines features of a market economy and traditional or planned economy.

What are the four participants in Australia’s economy?

Producers, Consumers, Financial institutions, Government.

What benefits do businesses bring to our society?

They provide goods and services, create jobs, corporate and employee taxes contribute to important government funding,

what is an exchange rate?

The value of a currency in terms of another currency.

What would be the impact on Australian exports and imports if the value of the Australian dollar increased?

The increase in the value of the Australian dollar would make exports more expensive for foreign buyers, and make imports cheaper for domestic buyers.

How does Australia’s economy contribute to the global economy

A large exporter of natural recourses,

What is the purpose of measuring GDP

To measure the growth of a country’s economy over a certain period of time.

What is the definition of economic recession

A prolonged period of significant decline in a country’s economic activity.

Definition of economic depression

A decline in an economy’s activity and health over a prolonged period (minimum 3 years)

ABS definition of an employed and unemployed person.

Employed = someone who completes at least one hour of paid work per week.

Unemployed = someone who is 15 years or older, actively searching for a job and available to start.

Causes of unemployment

• economic recession or depression