Economic Vocab
Things that people have to have in order to live.
Needs
Human resources such as time, energy, skill, or creativity
labour
Their aim is to maximize profits whilst keeping costs down.
Businesses/producers
Economic c__________ is a result of too many leakages.
Contraction
A c_________ is a name for a raw material or primary product that can be traded, such as iron ore, wheat, or oil.
commodity
The extra money a business makes compared to the costs of doing production.
Profit
Activities which other people perform for us
Services
The relationship between households and businesses is reliant on each other. this follows the key concept of:
Interdependence
China buying iron ore from Australia is an example of
Export
The type of company that operates beyond their sovereign borders
multinational corporation/transnational corporation
Goods that Australia is selling to other countries.
Exports
The top export service Australia offers
Education
You pay this as a percentage of the salary or wage you make.
Income tax
A place physical or online where price is negotiate between producers and consumers
Market
The growing connection and interdependence between countries through trade
globalisation
Businesses provide a good or service in exchange for what according to the CF model (not money)
Expenditure
Australia's biggest trading partner.
China
What examples qualify as government spending?
any of: schools, public services, hospitals, police station, fire station, defence, trains, infrastructure
Spending money in this area tries to ensure that citizens of the country will remain safe.
defence
A major event in 1929 that negatively affected worldwide trade.
The Great Depression
When money flows out of the economy. (also provide an example)
Leakage
tax, savings, imports
Australia's top export in the 1950s
wool
Name the 5 sectors in the CF model
Households/consumers; businesses/consumers; financial/banks; government; overseas
the study of how resources are allocated and distributed to best satisfy unlimited needs and wants
Economics
Name one way you can measure the living standards of a country based on economic performance.
GDP, inflation rate, unemployment rate