Household Sector
This is the term used by economists to describe all consumers in the economy.
What is the household sector
You are part of this sector when you go to work and provide labour.
The Business Sector
This function of money allows us to use it to pay for goods and services because it is accepted by everyone.
What is a medium of exchange?
This level of government is based in Canberra and runs the country.
What is the federal government?
These are three basic needs that households typically demand.
Food, shelter and clothing
In economics, this term refers to raw materials and natural resources used in production.
What is land?
This function of money lets us save income to spend at a later time.
What is a store of value?
This is the money households and businesses must pay to the government.
What are taxes?
This is the term for the amount of goods or services that consumers are willing and able to buy at a particular time.
What is consumer demand or household demand?
A trowel, a cash register, and a computer are all examples of this factor of production.
What is capital?
These are organisations like banks and superannuation funds that take deposits and lend money to others.
What are financial intermediaries?
The government uses tax money to build these three key types of infrastructure.
What are roads, schools, and hospitals?
This is what members of the household sector receive for their labour, which they then use to satisfy their needs and wants.
What are wages?
This factor of production involves recognising market demand, starting or growing a business, and taking risks.
What is enterprise?
This type of loan allows people to buy a house now and pay for it over time.
What is a mortgage?
These types of payments, like pensions or unemployment benefits, help consumers continue to spend and support businesses.
What are welfare payments?
This is the relationship where households provide labour and businesses provide wages and goods/services in return.
What is the interdependence between the household and business sectors?
This is the name given to someone who takes risks to start a business and organise resources to meet demand.
What is an entrepreneur?
This is the term for money borrowed by businesses to buy equipment or expand operations.
What is investment in capital?
High levels of this can reduce how much money consumers have to spend, slowing down business growth.
What is taxation?