HASS Economics test revision

Who are the key participants in the Australian economy?

The four main participants are consumers (households), producers (businesses), government, and the overseas sector.

What is the role of consumers in the Australian economy?

Consumers (households) provide labour and resources to producers, earn income, and spend it on goods and services.

What is the role of producers in the Australian economy?

Producers (businesses) rely on consumers for labour and to buy their goods/services, pay taxes to the government, and engage in international trade.

What is the role of the government in the Australian economy?

The government collects taxes, provides public goods/services (like schools and hospitals), redistributes income, and supports businesses and consumers through spending and policies.

What is the role of the overseas sector in the Australian economy?

The overseas sector involves other countries buying Australia's exports (e.g., iron ore, education) and selling imports (e.g., technology, cars) to Australia, impacting both households and businesses.

How is Australia interdependent with other economies?

Australia's economy is interdependent with others through trade (exports, imports), tourism, and trade links with partners like those in the Asia region (e.g., China).

Why and how are participants in the global economy dependent on each other?

Participants are dependent on each other because they are all connected through the flow of money, goods, services, and resources.

What is the role of transnational corporations (TNCs) in global interdependence?

Transnational corporations (TNCs) operate across borders and are key players in global supply chains, affecting how products and services move from suppliers to consumers worldwide.

What is a supply chain?

A supply chain refers to the many links or activities required to move a product or service from a supplier to a consumer.

How do global events impact the Australian economy?

Global events can disrupt supply chains, impact sectors like tourism, and necessitate government responses, all affecting the Australian economy (e.g., COVID-19 pandemic).

What was the impact of the COVID-19 Pandemic on the Australian economy?

The COVID-19 Pandemic (2020-2022) led to closed international borders (reducing tourism, students, migration), disrupted global supply chains (raising costs), increased demand for medical/digital services, and boosted government spending. It negatively impacted education, hospitality, and aviation sectors in Australia.

Why is trade significant to Australia’s economy?

Trade is vital for Australia's economic stability, providing employment, access to a wide range of goods and services, and contributing significantly to the standard of living.

What were the values of Australia’s exports and imports in 2021-22?

In 2021-22, Australia's exports were valued at 595 billion and imports at 460 billion, totaling over $$1 trillion in trade.

Define Capital as a factor of production.

Machinery, tools, and equipment needed to manufacture goods.

Define Enterprise as a factor of production.

People with the idea to create and innovate an existing product.

Define Land as a factor of production.

Natural resources required to produce goods.

Define Labour as a factor of production.

People with the skills and experience to produce goods and services.