Economic Basics
The study of the whole economy
What is macroeconomics?
An economy with little government intervention
What is a market economy?
Economic agents who buy goods and services.
Who are consumers/households?
The problem caused by limited resources.
What is scarcity?
An economy where the government controls production.
What is a planned economy?
Economic agents aiming to maximise profit.
Who are businesses?
The next best alternative given up.
What is opportunity cost?
Australia’s economic system.
What is a mixed economy?
Economic agent aiming to improve living standards.
What is government?
A graph showing production combinations.
What is the production possibility frontier?
An economy based on customs and traditions.
What is a traditional economy?
The two sectors of the economy.
What are the public and private sectors?
The three key economic questions.
What/how much to produce, how to produce, and for whom to produce?
The system using both markets and government involvement.
What is a mixed economy?
A government payment encouraging behaviour.
What is a subsidy?