Semester 1 Exam: Economics & Geography

define economic growth

define economic growth

an increase in the amount of goods and services produced per person within a specific period

what is used to measure the economic growth of countries

GDP (Gross Domestic Product) - measure of the total value of all goods and services produced in Australia over a year

unemployment rates

inflation

explain the aggregate demand method

-       an expression measuring the total amount of money (demand) spent on final goods and services in an economy at a given time

-       Aggregate Demand = Consumer spending + private Investment spending + Gov. investment spending + Net of imports & eXports

-       AD = C+I+G+Nx

explain Australia’s recent performance and compare it with other countries

-       Australia has experienced uninterrupted economic growth over the past 25 year and was one of the few countries that still experienced positive economic growth. forecasted that the economy will continue to grow between 3 - 4.5% by June 2017. (As of GDP 2015) compared to other countries, Australia is doing relatively well with the 12th largest economy

explain the correlation between living standards and economic growth

-       economic growth means that the overall production and income of a country are increasing, creating more job opportunities, higher wages, and increased business activities → people have more income to spend on goods and services, leading to an improvement in their living standards

-       higher incomes → individuals can afford better healthcare, education, housing, and other essential needs

-       leads to technological advancements and infrastructure development

explain the limitations of using GDP per capita as a measurement of living standards

-       GDP per capita does not consider the environmental and social consequences of producing more goods and services + does not consider important factors for a worthwhile life (leisure time, rewarding job, good health, fair wealth distribution, pollution free environment)

strengths + weaknesses of GPI used to measure the economic performance of countries

Genuine Progress Indicator

-       strengths - considers social, environmental, and wellbeing factors (e.g., income distribution, natural resource depletion, social costs)

-       weaknesses - involves subjective judgements and assumptions which can affect its reliability and comparability across countries. faces challenges in accurately quantifying intangible factors

strengths + weaknesses of HDI used to measure the economic performance of countries

Human Development Index

-       strengths - considers income levels, education, and life expectancy, focusing on the overall wellbeing and development of a population

-       weaknesses - does not capture all aspects of human development such as environmental sustainability and political freedoms and relies on national averages, which may mask disparities

strengths + weaknesses of Quality-of-life index used to measure the economic performance of countries

-       strengths - considers a wide range of indicators related to living conditions (income, education, healthcare, environmental quality) and is a comprehensive evaluation of wellbeing

-       weaknesses - requires selecting and weighting indictors, which can include subjectivity and influence the results. may also neglect certain cultural or societal aspects that affect an individual’s’ perception of quality of life

strengths + weaknesses of Happy Planet Index used to measure the economic performance of countries

-       strengths - considers the wellbeing and ecological sustainability of a country, combining indicators of wellbeing, life expectancy, and ecological footprint to determine how efficiently a nation generates wellbeing in relation to its resource consumption

-       weaknesses - emphasis on ecological sustainability may overlook other important economic and social aspects and relies on subjective wellbeing data, which can vary across cultures and may not capture the full range of factors that contribute to wellbeing

define unemployment

the state of being able to work and actively trying to find a job, but is unable to

what is the government’s aim of percentage rate for unemployment in the country

<5%

explain why it is important to reduce the unemployment rates in a country

-       lower unemployment rates contribute to economic growth and stability through greater purchasing power, stimulating consumer spending and drives demand for goods and services. there are also less people relying on social welfare programs, where governments can redirect their resources elsewhere

how is unemployment measured in Australia

unemployment rate - percentage of people in the labour force who are unemployed

what is Australia’s current unemployment rate and how does this compare with other countries

-       3.6%

-       relatively low unemployment rate in relation to other countries, ranking 15th out of 36 countries in the OECD, 2014 unemployment statistics

explain the causes of unemployment

-       structural - caused by changes in technology or shifting demographics

-       cyclical - caused by economic downturns or is related to changes in business conditions that affect the demand for workers

-       frictional - moving between jobs in the labour market as well as when people transition into and out of the labour force

-       seasonal - specific jobs impacted by the seasonal patterns

explain the effects of unemployment on the individual and the country

-       economic spending is low → government collects less revenue from tax and must pay more to direct it towards social benefits (unemployment benefits) and welfare programs (social housing), government changed budgetary stance

-       reduced standard of living, loss of skills from workforce, possible psychological effects (depression), increased inflation

define inflation

measures the increase in the general level of prices paid for goods and services over a certain period

how is inflation measured

-       the Australian Bureau of Statistics (ABS) measure inflation quarterly using charges within the Consumer Prices Index (CPI), which measure the price change in a typical basket of goods and services, sorted and weighted categorically, purchased by Aus. households every quarter

what is the cause (demand and supply factors) of inflation

-       cost pull factors - caused by producers putting additional costs on the consumer to cover their extra expenses (consumer/business confidence, well performing trading partners, low interest rates encouraging more loans, lower taxes & increased gov. spending)

-       demand pull inflation - increase in prices due to increase in demand for goods and services

what is Australia’s current inflation rate

-       7%

explain the effects of inflation has on the consumer and producer

-       impacts consumers with less purchasing power, spending more on everyday items, leading to reduced money to spend on goods and services or invest

-       impacts producers as they can increase prices of products leading to increased revenue, but face increased costs for materials and labour

define macroeconomics

-       a branch of economics that focuses on an industry or market segment; it focuses on improving production over the medium to longer term

define budgetary policy (fiscal policy)

-       the government’s management of the federal budget, adjusting expenditure and tax rates to influence the performance of the economy

define each type of budget

-       budget deficit - gov. revenue < gov. expenditure

-       budget surplus - gov. revenue > gov. expenditure

-       balanced budget - gov. revenue = gov. expenditure

explain the difference between direct taxes and indirect taxes, use examples in your explanation

-       direct taxes are tax you as an individual pay directly to the gov. and is influenced on how much money you earn (income tax), whilst indirect tax is tax imposed on producers then shifted on to the consumer through the purchasing of goods and services (GST)

explain the different types of government spending

-       health

-       social security & welfare

-       defence

-       paying interest on debt

-       schools

-       higher education

-       aged care

-       foreign affairs & aid

-       government superannuation benefits

-       assisting Indigenous Australians

-       environmental protection

-       infrastructure (e.g. National Broadband Network)

what is the impact of the budget outcome

-       budget surplus - encourages spending, lowers taxes

-       budget deficit - lowers spending, raises taxes

define monetary policy

-       actions by the Reserve Bank of Australia (RBA) that affect the money supply and interest rates

how does the Reserve Bank of Australia (RPA) control the flow of money

-       by enforcing the monetary policy - controlling the official interest rate, adjusting the level of spending, or demand, depending on economic circumstances

what percentage does the government aim towards for economic growth

2-3%

what percentage does the government aim towards for the unemployment rate

<5%

what percentage does the government aim towards for inflation

2-3%

explain how the Gini coefficient Model and The Lorenz Curve are used to explain wealth distribution

-       the Gini coefficient measures the extent of inequality in a country or region, where a value of 0 represents perfect equality and a value of 1 indicates extreme inequality

-       the Lorenz curve visualises the distribution of wealth by plotting the cumulative share of income or wealth held by different portions of the population, showing how the actual distribution deviates from an equal distribution. the greater the distance between the Lorenz curve and the line of perfect equality, the higher the level of wealth inequality

how can businesses increase productivity through operations management

-       involves streamlining workflows, eliminating bottlenecks, and improving efficiency at every stage of production or service delivery. by improving the supply chain, businesses can reduce costs, minimize waste, and ensure timely delivery of goods or services use of technology, through effective scheduling and resource allocation

how can businesses increase productivity through use of technology

-       utilising new equipment to improve their processes with advanced technology or more efficient practices to save time and cost

how can businesses increase productivity through customer relationship management

-       businesses can centralise customer data, track customer interactions, and gain insights into customer preferences and needs, allowing them to personalize their approach, provide better customer service, and build stronger relationships. businesses can tailor their products or services, improve marketing strategies, and increase customer satisfaction and loyalty

how can businesses increase productivity through human resource management

-       involves recruiting right talent, comprehensive training, fostering positive work environment, promoting employee engagement, recognition, and work-life balance, which boosts morale and motivation, meaning they are more likely to be committed to achieving the company's goals

how does price & availability influence consumer & financial decisions of a business

-       price is associated with the quality of the product and consumers have lower and upper limits: if too low → suspicious of quality, if too high → not worth the price. may also be influenced if not mass available and expensive to create a sense of exclusivity and prestige (status symbol of wealth and power)

how does ethical and environmental consumerism influence consumer & financial decisions of a business

-       provide guidance on what is right and wrong. consumers may wish to purchase products that have been produced in a way that is consistent with their beliefs of what is right (animal rights, environment, human rights)

how does availability of finance influence consumer & financial decisions of a business

-       refers to how easy it is to borrow money or obtain a loan. e.g., credit card limits and possibility of difficult debt and bankruptcy through excessive usage

define wellbeing

-       the ability of human beings to access the things they need to live happy and healthy lives (e.g., food, water, education, safety, and security)

explain why wealth, education and health are seen as the three most important variables that influence wellbeing

-       wealth dictates our access to basic necessities; quality education with the ability to read and write provides opportunities leading to better jobs, higher wages and improved standards of living; health is subject to a wide range of factors such as clean air, water and secure supply of food as well as the ability to treat and control the spread of disease, provide healthcare when injured or sick, care for the vulnerable, and provide emergency services during crisis

how do environmental factors affect wellbeing

-       land quality for agriculture, climate, availability of fresh water, natural resources

how do social factors affect wellbeing

-       population size and growth, cultural norms such as gender roles

how do economic factors affect wellbeing

-       trade laws, access to trade routes

how do historic factors affect wellbeing

-       key historical events, past conflicts, colonial past

how do political factors affect wellbeing

-       political stability, political system established, level of corruption, wars and civil conflict, how gov. funds are used, state/quality of policies produced

explain how GDP is used to measure wellbeing

-      measures wealth of country - calculates the size of its economy by adding the total value of all goods and services produced in a year → amount of spending, employment, stability. however does not include social and environment factors/consequences

define demographics

-       the statistical data of a population or of groups within a population, especially those related to average age, gender, income, education level, etc.

what is DTM

-       the Demographic Transition Model (DTM) is used to explain the stages in population growth patterns that occur as societies develop and undergo economic and social transformations.

stage 1 of DTM

high stationary - pop. growth is slow and fluctuating

-       > birth rate → lack of family planning, high infant mortality, need for workers in agriculture, religious belief, children as economic assets

-       > death rate → high levels of disease, famine, lack of clean water & sanitation, lack of healthcare, war, competition for food from predators (rats), lack of education

stage 2 of DTM

early expanding - pop. begins to rise steadily

-       > birth rate remains

-       < death rate → improved healthcare (smallpox vaccine), improved hygiene (boiling drinking water), improved sanitation, improved food production & storage, improved transport for food, decreased mortality rates

stage 3 of DTM

late expanding - pop. rising

-       < birth rates

-       < death rates continue

→ family planning available, lower infant mortality rate, increased mechanisation reduces need for workers, increased standard of living, changing status of women

stage 4 of DTM

low stationary - pop. is steady

-       < birth rate

-       < death rate

stage 5 of DTM

-       < birth rate slight fall → family planning, better health, later marriages, improved status of women

-       = death rate → good healthcare, reliable food supply, people are generally living longer

examine the link between population and wellbeing

-       people living in countries with a rapidly growing population experience difficulties accessing vital services, including access to education, food, safe drinking water, electricity, communications, healthcare, and transportation. countries in which poverty levels are the highest are generally those that have the most rapid increases in population and the highest fertility levels, which are also linked with gender inequality

what is a population pyramid? what information can be gained from examining a population pyramid of a country

-       a type of graph that displays the percentage of males and females in a region or population grouped by age. used to describe the population structure, identifying the different groups in society that make up the total population. the overall shape can indicate whether a population is growing, contracting, or remaining relatively stable, reflecting the country’s policies or economy (e.g., quality of healthcare, poverty)

how have governments responded to population and wellbeing issues

-       through introducing policies to combat these issues such as encouraging reproduction when in a declining population (e.g., baby boom) or intervening and improving living conditions and reducing the birth rate (decreasing poverty)

explain how gender inequality can affect wellbeing – refer to education, government representation and job opportunities in your explanation

-       inequal access to quality education - limits opportunities for personal and economic development, perpetuates cycles of poverty, and restricts women’s ability to fully participate in society

-       lack of representation in government - further exacerbates gender inequality → women's perspectives and needs overlooked in policymaking and decision-making processes

-       limited job opportunities and gender-based discrimination in the workforce, hindering women's economic empowerment, financial independence, and overall well-being, where it is common for low levels of women participation & are often paid less even when participation is high

explain how technology can be used to help improve wellbeing

-       technology can be used to offer efficient solutions for daily tasks which reduce stress and save time, which can contribute to economic growth if introduced into the workforce. advancement of ICT creates a rapid growth and communication of ideas and knowledge as well as allowing opportunities for outsourcing for new employment opportunities and cheaper labour

discuss the relationship between low literacy rates and poverty

-       reflects lack of access to proper education as due to the systemic barriers of poverty (lack of trained teachers, classrooms, education materials - books) as well as attendance barriers (expensive school fees, great distance to school, poor transport networks, concern for safety)

discuss the relationship between HIV and poverty

-       people living in poverty are more vulnerable to HIV as the face limited access to education and healthcare

-       HIV further exacerbates poverty as individuals must face expensive medical expenses, reduced ability to work, and loss of productivity

discuss the relationship between political instability/war and wellbeing of a country

-       impacts people’s health, education, and economic activity → results in loss of life, displacement from homes, destruction of infrastructure and essential services like healthcare and school, economic decline, unemployment, inflation, and poverty

-       creates danger and fear among the community, impacting people’s mental wellbeing

explain why Kevin Rudd in 2008 wanted to ‘Close the gap between Indigenous and non-Indigenous Australian’s…’

-       as part of his apology to Aboriginal and Torres Strait Islanders affected by official government policies that separated Indigenous children from their families - the Stolen Generation

what were the governments targets to reduce the gap between Indigenous and non-Indigenous Australian’s

-       close the gap in life expectancy by 2031

-       halve the gap in mortality rates for Indigenous children under five by 2018

-       ensure access to early childhood education for all Indigenous four-year-olds in remote communities by 2013

-       halve the gap in reading, writing and numeracy achievements for Indigenous children by 2018

-       halve the gap in Indigenous Year 12 achievement by 2020

-       halve the gap in employment outcomes between Indigenous and non-Indigenous Australians by 2018

what were the aims of the MDG’s

-       eradicate extreme poverty & hunger

-       achieve universal primary education

-       promote gender equality &empower women

-       reduce child mortality

-       improve maternal health

-       combat HIV/AIDS, malaria & other diseases

-       ensure environmental sustainability

-       develop a global partnership for development

summarise the progress made by the MDG’s in achieving their goals of improving wellbeing

-       made significant progress in improving well-being globally with efforts to eradicate extreme poverty and hunger, improve primary education, reduce child mortality, and combat major diseases have yielded positive results. Many countries achieved substantial gains in these areas (Eastern Asia), with increased access to education, reduced child mortality rates, and improved access to clean water and sanitation. However, progress has been uneven, with some regions and goals falling behind targets, especially within Oceania & Western Asia. Additionally, challenges persist in achieving gender equality, ensuring environmental sustainability, and addressing maternal health issues

define foreign AID

-       assistance provided by one country or organization to another country with the objective of promoting economic development, reducing poverty, improving healthcare and education, supporting infrastructure projects, responding to humanitarian crises, or other needs in the recipient country

explain how Australia can contribute foreign AID to other countries to help improve wellbeing

-       providing money to aid organisations that do work within the community, emergency aid often in the form of food supply, fresh water, and medical teams, as well the contribution of the Australian government with other governments to assist in the delivery of important services such as policing and hospitals

define NGO

-       Non-Government Organisation

-       any not-for profit organisation independent of the government which is organised and administered on a local, national, or international level; NGOs often rely on the support of volunteers and donations, where all money earned goes to support their work

explain how NGO’s can help to improve wellbeing – use examples

-       Doctors Without Borders - delivers emergency aid to people affected by armed conflicts, epidemics, exclusion form healthcare and natural disasters. draws attention to human rights violations and the lack of adequate responses to emergencies by governments in the areas in which they work

-       Bangladesh Rural Advancement Committee - alleviate poverty by providing micro-credit to the poor of Bangladesh, which allows individuals to finance projects so that they can start their own small businesses, repaid with minimum interest

why does the government intervene in the market

-       regulate and track tax payments to redistribute money back into the market on things to improve wellbeing and the economy (social security/welfare, health, education)

-       regulate incomes and earnings of people and businesses to ensure stability and fairness

-       these reasons influence the growth of our economy through inflation, price of taxes, and overall wellbeing

define sustainability

the ability to maintain and avoid the depletion of natural resources

causes of sea level rising

melting of glaciers, thermal expansion

impacts of climate change

destruction of habitats, sea levels rising, global warming

define soft engineering

using natural processes to reduce coastal impacts which are less expensive and more sustainable

define hard engineering

using man made processes to reduce coastal impacts but has high impact on environment and may create new problems

define ICZM

Intregrated Coastal Zone Management