Year 10

Economics and
Businesses
Semester 2 CAT REVISION
  Indicators of economic performance (e.g.
economic growth rates, unemployment trends,
inflation rates, human development index,
quality of life index, sustainability indexes) and how
Australia's economy is performing (ACHEK050)
Curriculum  The links between economic performance and
points for living standards, the variations that exist within and
between economies and the possible causes (e.g.
revision foreign investment, employment rates and levels of
debt) (ACHEK051)
 The distribution of income and wealth in the economy
and the ways in which governments can redistribute
income (e.g. through taxation) (ACHEK051)
Economic
performance and
Indicators
• Economic
cycle
Economic performance and
Indicators
Economic cycle (Contraction)

The downswing of the business

cycle towards
a trough is called an economic
contraction.
It is associated with:
• decrease in production/output
• increase in unemployment
• decrease in wages
• decrease in consumer
spending.
Economic performance and
Indicators
Economic cycle (Expansion)

The upswing of the business cycle

towards a
peak is called an economic expansion.
An
economic expansion is associated with:
• increase in production/output
• decrease in unemployment
• increase in wages
• increase in consumer spending.
  A boom is a period of strong economic
expansion where many businesses are
operating at full capacity or above
capacity, and the unemployment rate is
very low. Income and production are at
Economic performance very high levels. This can lead to rapid
and Indicators growth in prices.
• Economic cycle  A recession is when output has fallen for a
(extreme phases.) period of time and the unemployment rate
increases.
 A depression is a very severe recession.
There is a large contraction in the economy,
and the unemployment rate is likely to be
at a very high level.
  Review your notes, what are some of the quantitative
and qualitative indicators you have learned in Term 4?
 Hint: Economic Growth; Inflation etc.
 Use your notes to complete the 'economic
performance indicators' table of the revision booklet.

Economic
performance and
Indicators
 Review your notes, write down
Living Standards
Material Living definitions for material living
Standards standards and non-material
&
Non-Material living standards.
Living Brainstorm factors contribute
Standards
to both.
  The Gini coefficient is a measure of inequality
that ranges between 0 and 1, where higher
values indicate higher inequality.
 https://ourworldindata.org/grapher/economic-i
Distribution of nequality-gini-index
income and wealth
• Gini coefficient Follow the link above
 (a) Find out the latest Gini Coefficient data for
China, Zambia, India, Brazil and Norway.
 (b) Rank them from the least equal to the most
equal.
Distribution of
income and wealth
• Lorenz Curve
(a) Draw and label the Lorenz Curve. (Hint: Title;
Cumulative % of Households; Cumulative % of income;
Line of perfect equality)
(b) Use data from the previous activity ‘Gini Coefficient’,
draw and label Lorenz curves to represent Norway and
Brazil.
Distribution Review your notes, write down
of income and wealth
• Taxation system
the definition for progressive
income tax