Economics flashcards

98 WACE Economics cards across 2 modules (39 definitions, 46 key facts, 13 fill-the-gap, 0 formulas). Each session gives you 20 cards, due cards first. Swipe right for easy, left for hard, down for again. Keyboard: Space to flip, 1 to 4 to rate.

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What this deck covers

Unit 3: Australia and the Global Economy (41 cards, 10 dot points)
Unit 4: Macroeconomic Theory and Economic Policy (57 cards, 13 dot points)

Sample cards from this deck

Definition
Australia's trade patterns and agreements: WACE Year 12 Economics Unit 3
Define Goods exports
Goods exports are dominated by iron ore, coal, natural gas (LNG), gold, beef and wheat. Resources and energy alone make up the majority of goods export earnings.
Definition
Aggregate demand and aggregate supply (WACE Year 12 Economics Unit 4)
Define Aggregate supply (AS)
Aggregate supply (AS) is the total output producers are willing and able to supply at each price level.
Definition
Exchange rates: WACE Year 12 Economics Unit 3
Define Commodity prices and the terms of trade
Higher iron ore and energy prices raise export revenue and demand for AUD, appreciating the dollar. This makes the AUD a "commodity currency".
Definition
The circular flow of income: WACE Year 12 Economics Unit 4
Define Saving (S)
Saving (S) is returned as investment (I) through the financial sector.
Definition
Foreign investment and capital flows: WACE Year 12 Economics Unit 3
Define Pitchford thesis
Pitchford thesis (the consenting adults view): if private firms and households are voluntarily borrowing offshore to fund productive investment, the resulting current account deficit and foreign liabilities are not inherently a problem, because the borrowing is expected to generate the returns to service it.
Definition
Distribution of income and wealth: WACE Year 12 Economics Unit 4
Define Income and wealth
Income is the flow of money received over a period, such as wages, profit, rent, interest and government transfers. Wealth is the stock of assets owned at a point in time (property, shares, superannuation, savings) minus liabilities.
Definition
Free trade and protection: WACE Year 12 Economics Unit 3
Define The three main instruments
Tariff: a tax on imports that raises the domestic price of imported goods. Subsidy: a government payment to domestic producers that lowers their costs.
Definition
Economic growth: WACE Year 12 Economics Unit 4
Define Economic growth
Economic growth is an increase in the productive capacity and output of an economy over time, measured as the annual percentage change in real gross domestic product (real GDP), which is GDP adjusted for inflation.
Definition
Gains from trade: WACE Year 12 Economics Unit 3
Define Opportunity cost ratio
The opportunity cost ratio expresses how many units of one good a country must give up to produce one extra unit of another good. A country has a comparative advantage in the good with the lower opportunity cost ratio, even if it has an absolute advantage in both goods.
Definition
Fiscal policy (WACE Year 12 Economics Unit 4)
Define Discretionary policy
Discretionary policy is deliberate changes to tax rates or spending, for example the Stage 3 tax cuts or a new infrastructure program. These reflect the government's policy stance.