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Eco Revision
Economics revision
Question | Answer |
---|---|
What has been the impact of international protection levels Australia? | Reduced agricultural protection, reduced barriers of trade, increase in mining and resources sector. Decline in manufacturing industries, service industry decline due to natural barriers. e.g.: geography. |
List some advantages of free trade? | obtain goods and services that can't be produced by that country, specialisation, efficient allocation of resources, international competitiveness, economies of scale and increased living standards |
List some disadvantages of free trade? | unemployment, difficult for infant industries, dumping |
What is the cash rate? | the interest paid on overnight loans in the short-term money maker. It is the rates set by the RBA. Banks set interest loans. |
What is a transfer payment? | from the government to assist people with basic costs of living. Eg: aged care, disability pensions. |
What are the 4 factors of production? | Land, labour, capital and enterprise |
What are the incomes paid to these? | rent, wages, interest and profit |
What is external stability? | an aim of government that seeks to promote sustainability on the external accounts so that Australia can service its foreign liabilities in the medium - long term to avoid currency volatility. |
What is the Pitchford Thesis? | as long as the CAD is the result of saving and investment decisions by the private sector and not a distortion of normal market mechanisms then there is no cause for concern about economies external stability. |
What are our net foreign liabilities equal to? | net foreign debt + net foreign equity (world's financial obligations to Australia) |
What are the main causes of unemployment? | opportunities for education and training, skills matched to jobs, regulations, technologies, economic growth has been too low. |
What is derived demand? | labour derived from the demand for the good and services that labour helps produce |
What are some recent economic trends? | global economic conditions, terms of trade, sustainable economic growth, monetary policy. |
What are some of the economic costs of inequality? | reduces economic growth, reduces satisfaction in society, creates excessive consumption, poverty and social problems, increase cost of welfare, |
What are some government policy |