Humanities: Laws, gov, money exam revision

Which of the following is a function of money?

A. Medium of exchange
B. Store of value
C. Unit of account
D. All of the above

D. All of the above

Which of the following is an example of fiat money?
A. Good coins
B. Silver bars
C. Paper currency
D. Precious stones

Paper currency

What is the potential downside of a cashless society?
A. Increased transaction costs
B. Greater financial privacy
C. Exclusion of those without bank accounts
D. Reduced risk of theft

C. Exclusion of those without bank accounts

Which tool is used by the Reserve Bank of Australia to implement monetary policy?
A. Fiscal policy
B. The cash rate
C. Government spending
D. Taxation

B. The cash rate

What type of inflation is caused by increased production costs?
A. Demand-pull inflation
B. Cost-push inflation
C. Hyperinflation
D. Deflation

B. Cost-push inflation

Which of the following is a type of tax?
A. Income tax
B. Sales tax
C. Property tax
D. All of the above

D. All of the above

What is superannuation?
A. Type of government bond
B. A retirement savings plan
C. A short-term investment
D. A form of health insurance

B. A retirement savings plan

What is protectionism?
A. Policy of free trade
B. A policy of restricting trade
C. A type of environmental protection
D. A form of consumer protection

B. A policy of restricting trade

What should you consider when buying a second- hand car?

A. The car’s history and condition
B. The interest rate on the car loan
C. The cost of car insurance
D. All of the above

D. All of the above

Describe the role of the reserve bank of Australia in managing the country’s currency

Its main role is to manage monetary policy. It is also responsible for the official cash rate, currency issuance and management, and financial stability.

Explain the concept of inflation and it’s impact on purchasing power

Inflation is when prices go up over time, money buys less than before.

Explain the difference between fiscal policy and monetary policy?

Fiscal policy is when the government changes spending or taxes to influence the economy. Monetary policy is when the central bank changes interest rates or money supply.

What is the federal budget, and why is it important for the Australian economy?

The government’s plan for how it gets and spends money, it is important because it helps to fund things like schools, hospitals and jobs.

Describe the benefits of a cashless society

Can be faster, convenient, reduces crime, makes it easier to track spending and manage money.

Explain the 3 types of inflation

Demand-pull inflation: Occurs when demand for goods and services exceeds supply in the economy
Cost-push inflation: Occurs when overall prices increase due to increases in the cost of wages and raw materials.
Hyperinflation: Occurs when prices of goods and services rise uncontrollably over a period of time

What are the different types of taxes levied in Australia. Provide brief description of each.

Income tax: Tax on money people earn from jobs, businesses, or other income
GST: Tax added to most things bought
Company tax: Tax that businesses pay on their profits
Capital Gains tax (CGT): Tax on the profit made when selling things like property or shares
Payroll tax: Tax that some businesses pay based on how much they pay their workers

Describe how the government supports economic growth through infrastructure

The government collects revenue to fund services, such as roads, schools and hospitals. This helps economy grow by creating jobs and improving transport and services.

What are the main objectives of Australia’s economic policy?

The main objectives are to keep the economy growing, to create jobs and to have low and stable inflation.

What is the the difference between Free trade an protectionism?

Free Trade: Trading with other countries without tariffs or restrictions
Advantages- economic growth, lower prices for consumers
Disadvantages- job displacement, potential exploitation of labour

Protectionism: Includes tariffs, restricts international trade
Advantages- Supports local businesses, prevents short term unemployment
Disadvantages- Higher prices for consumers

What has the RBA deemed it as necessary to do in the last few years in Australia that has affected the cost of living of Australians?

The RBA has raised interest rates to try to control inflation. This makes loans and mortgages more expensive.

What is the primary difference between the Australian Labor party and the Liberal party of Australia?

The Australian Labor party is a left-leaning party, while the Liberal party is a right-leaning party.

What is the main purpose of the Australian constitution?

To outline the structure of Australian Government and it’s powers.

 What is the purpose of the ‘committee stage’ in law making process in Australia?

To examine the Bill in detail and propose amendments.

What is the main reason why Australia adopted a federal system of Government?

To allow for laws to be made at both national and regional levels. 

What is the role of the Opposition Party in the Australian Government?

To scrutinize the government’s actions and propose alternative policies.

What is the purpose of the ‘Royal Ascent’ in law making in Australia.

To formally approve the Bill and make it law.

What is meant by term ‘federal system’?

A system of government where power is shared between local, state and federal levels.

Give an example of all three law-making areas at each level of government

Federal-Immigration, defense, trade

State-Education, hospitals, public transport
Local-Waste management, parks, pet control

Difference between parliament and government?

Parliaments makes and debates laws by representing the people. The government put those laws into action.

Explain the meaning of the term 'bicameral'

Means 'two chambers' or 'two houses' of parliament.

What is the name of laws made by parliament?

Statutes/acts of parliament

Explain the separation of powers.

Parliament-Makes/changes the law
Executive-Puts laws into action

Judiciary-Makes judgements on law

Name the two houses of the Commonwealth parliament and the two houses of the State parliament.

Commonwealth parliament: House of Representatives, the senate
State parliament: Legislative assembly, Legislative council

What is the difference between a minister and shadow minister?

Ministers are responsible for specific policy areas. Shadow ministers are members of the opposition who scrutinize them and their policies.

In what ways can members of the community influence law-making?

They can vote, petition, protest or contact their representatives.

When and why did Australia become a Federation?

On January 1st 1901, to unite all states and territories into one nation.

How can the constitution be changed?

Through a referendum, where the change is put to votes by the public.