ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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goods
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services
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primary income
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secondary income
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Detailed explanation-1: -Individuals income tax. Individuals’ income tax is the single most important source of government revenue. Since the mid 1970s it has consistently raised around half of the Australian Government’s tax receipts and continues to be a stable and predictable source of revenue.
Detailed explanation-2: -Australia suffers from a persistent Current Account Deficit (CAD) due to outflows in the Current Account exceeding inflows. This is directly caused by the NPY and BOGS balances.
Detailed explanation-3: -Australia’s established world reputation has long been that of a wealthy underpopulated country prone to natural disasters, its economy depending heavily on agriculture (“riding on the sheep’s back”) and foreign investment.
Detailed explanation-4: -Current Account. The current account covers all transactions that directly satisfy economic needs and are distinguished as goods and services trade, receipt or payment of income from investments (primary income), and unilateral transfers (secondary income).