Year 10 S&E: Economics Definitions

Next week you will be given an economics assessment. In order to be able to select your topic and write about it knowledgeably, you will need to know the meanings of the following terms:

unemployment
inflation
interest rates
balance of payments
economic growth
foreign debt
industrial relations
privatisation
sharemarket
taxation
globalisation
income distribution

Find out what economists mean when they use these terms and write those definitions down in your notes so you can use them in your assessment next week.

Critical Reading of Economics Polemic

Many politicians and media commentators use economics arguments to justify their own point of view. Yet many of them do not have a clear understanding of economic principles. If you have a sound understanding of economics you will be able to critically analyse and pull apart faulty arguments.

For this session, you will need to read the article"The Oil War-driven Recession We Had To Have by commentator Bob Ellis. Remember this article is an opinion piece and uses polemical arguments. There may be serious flaws in his reasoning.

Consider the following questions:
1. What is causing inflation (according to the author)?
2. Why is oil so expensive according to the author?
3. Why do you think oil is becoming so expensive?
4. Ellis suggests that the Reserve Bank of Australia should follow the lead of the US Federal Reserve by slashing interest rates. Do you agree? Why (or why not)? How is the situation in Australia different from the United States?
5. What's wrong with the statement, "You don't fight inflation by putting prices up. You fight it by bringing prices down. Start with interest rates and see how you go. How hard is it to get your brain around this?"

Discuss these questions in small groups and amongst the class.