Year 10 Economics

What is economics?

• The study of unemployment

• The study of the Australian economy

• The study of how limited resources are used to meet the unlimited wants of people in society

• The study of GDP

What is macro economics?

• The study of major problems in economies

• Is the social science that studies the implications of individual human action, specifically about how those decisions affect the utilization and distribution of scarce resources

• The study of large economies

• The study of production, distribution and exchange of goods and services in a national or global context

What effect does rising interest rates have on consumer spending?

• Increases spending

• Decreases spending

• Neither increases or decreases spending

• Both increases and decreases spending

What does GDP stand for?

• Gross Domestic Production

• Greater Domestic Product

• Greater Domestic Production

• Gross Domestic Product

What is the desired rate of growth for GDP?

• 3-4%

• 2-3%

• 1-3%

• 4-5%

What is underemployment?

• Occurs when workers who want to work are unable to find jobs, which lowers economic output; however, they still require subsistence.

• Employment that goes under the radar.

• The condition in which people in a labor force are employed at less than full-time or regular jobs or at jobs inadequate with respect to their training or economic needs

• Employment that does not show up in the employment figures.

The target rate for inflation is?

• 1-2%

• 2-3%

• 3-4%

• 4-5%

Who controls the cash rate (interest rate) in Australia?

• RBA

• CBA

• Australian Government

• Qld Government

If economic activity is low in a country, would the RBA increase or decrease the cash rate?

• Increase

• Decrease

What is inflation?

• When the economy is doing well.

• A sustained increase in the general price level of goods and services in an economy over a period of time.

• When Coles and Woolworths increase the price of some goods.

• When you get a high power bill.