Question

v. During Australia’s mining boom this century, did Australia regularly achieve a positive balance of trade? If yes, state one year when it did not. If no, state one year when it did. [Limit 20 words: 1 mark]

Answer:

vi. Why does it matter for the price of assets that the stock of existing assets is much greater than the flow of newly produced assets?   
[Limit 20 words: 1 mark]

Answer:

Answer 1

1 answer) In the current centuary Australia experienced significant mining boom.In 1993-94 the mining sector GDP is 4.5% and in 2006-07 it has increased to 8 %.The GDP growth of property and business sector is increased from 10% to 14.5 % .The GDP growth in manufacturing sector is 12% in 2006-07.

2 answer) For the analysis of stock the price of assets is important because net fixed investment includes less disposal of fixed assets from figure of new produced asset which is termed as net fixed capital formation.The produced fixed assets have tangible assets and GFCF that is gross fixed capital formation measures gross net investment.