Eco1
When the demand for a good or service is greater than the supply of the good or service we have this problem
scarcity
Things that people must have to survive
needs
Things that people would like to have but can live without
wants
When Australia purchases items from other countries
import
When Australia sells products to other countries
Someone who buys goods and services
consumer
Actions done for others in exchange for payment
services
Products that people consume or use
goods
The term given to money that is flowing out of the Australian economy
leakage
The term that is given to money that is flowing into the Australian economy
Someone who makes goods or provides services
producer
The value of the next best alternative
opportunity cost
The amount of a goods and service that businesses produce
supply
Money that has been paid to a worker (household) for the amount of time that has been worked at a business
wages, salary, income
The three main indicators of Australia's economy
Gross Domestic Product, inflation and unemployment rate
Economic system in which the government controls all aspects of the economy
Command Economy
The types of resources that Australia mostly exports
Primary products
Economic system in which customs and history rule decisions made in an economy
traditional economy
A market economy with some government regulation.
Mixed economy
The four factors of production
natural resources, labour resources, capital resources and entrepreneurship
What are the three economic questions?
What to produce? How to produce? For whom to produce?
The economic system in which individuals/businesses decide what, how, and how much will be produced/sold
Market Economy
The government ideally wants this figure to grow between 2-3% per year
Gross Domestic Product
The main types of economic systems
1) traditional economy
2) command economy
3) market economy
4) mixed economy
Describe the circular flow model
The circular flow of the economy shows how money, goods, and services move between households and businesses. Households provide labour to businesses and receive income (wages), which they use to buy goods and services from businesses. This ongoing exchange keeps the economy active and illustrates the interdependence between consumers and producers.