Practice · 10 Australian claims

Economics in the Real World

Each scenario starts with a claim you will have heard in the news, at work or around the dinner table. Treat it as a proposition to examine, not a conclusion to accept or reject. Read the claim and the background, then write your own answer to the 'Your turn' question before you open the model response. A few sentences is enough.

Then compare your answer with the model and the rubric. The model is one strong answer, not the only one. You are encouraged to reach your own conclusion and defend it, as long as you get the accounting and the institutional facts right, describe the competing views fairly and say what evidence would change your mind. Nothing here is scored, and you can come back and try again.

“How will Australia pay for Medicare?”
About 12 minTaxGovernment spending
“The government has to balance its budget like a household.”
About 12 minGovernment spendingWhat is money?
“Public debt will burden future generations.”
About 12 minGovernment spending
“Higher wages inevitably cause inflation.”
About 12 minInflationJobs & the economy
“Unemployment has to increase to control inflation.”
About 13 minJobs & the economyInflation
“If governments can create money, why can't they build 500,000 houses tomorrow?”
About 13 minHousingGovernment spending
“We must raise billionaire taxes before funding new public services.”
About 12 minTaxGovernment spending
“Australia needs foreign investment because it is running out of money.”
About 12 minThe global economy
“Higher interest rates are the only effective way to control inflation.”
About 12 minInflation
“A trade deficit means a country is losing.”
About 12 minThe global economy