Sectors in Australia's Economy
Individuals in the economy who consume goods and services, provide labour and pay taxes.
What are households?
A leakage that occurs when consumers buy goods produced in another country.
What is imports?
Goods and services provided by the government for the benefit of the public, such as education or roads.
What are public goods and services?
Natural resources that are used in producing goods and services.
What are land resources?
The study of how people produce goods and services for people to consume or use.
A good or service that is necessary for survival.
What is a need?
A good or service that a person would like to have but that is not essential for survival.
What is a want?
Other nations that Australia trades with by importing to exporting goods and services.
What is the overseas sector?
This leakage occurs when households keep some of their income instead of spending it on goods and services.
What is saving?
An injection that occurs when the government spends money from taxation on public goods and services.
What is government spending?
The physical skills or knowledge that workers need to make goods or services.
What are labour resources?
Physical, tangible items that are produced, bought, sold, or owned in an economy.
What are goods?
The amount of a product or service that producers are willing and able to sell at various prices.
What is supply?
A place where goods and services are exchanged.
What is a market?
All businesses in the economy, they produce and sell goods and services using economic resources.
What are firms?
This leakage occurs when the government collects money from individuals and businesses.
What is taxation?
An injection that occurs when a bank or financial institution lends money to a household or firms.
What is investment?
Man-made resources that are used to produce and transport goods and services.
What are capital resources?
Intangible activities, amenities, benefits or assistance that one person or business performs or provides to another.
What are services?
The amount of a product or service that consumers are willing and able to buy at various prices.
What is demand?
When the amount of an good or service that is available is above and beyond what is currently needed, used, or required.
What is a surplus?
All national, state and local government bodies who receive taxation and spend it on public goods and services.
What is the government sector?
As a result, they may have less disposable income to spend on goods and services due to taxation, or choose to save rather than spend their income.
How can households be affected by leakages?
When Australia sells goods and services to other countries and money flows into Australia's economy.
What are exports?
The skills that an entrepreneur has to use the other factors of production.
What is enterprise?
Having limited resources to achieve unlimited needs and wants.
What is the economic problem/scarcity?
The point where supply and demand intersect and the amount supplied equals the amount demanded
What is equilibrium?
A state or market condition where the quantity of something needed or wanted is less than the amount available
What is a shortage?
Banks and other financial institutions who receive savings and lend money for investment.
What is the financial sector?
As a result, they may experience lower sales and revenue when households purchase goods and services from overseas.
How can firms be affected by leakages?
When the government increases spending on infrastructure projects, firms may receive more contracts, leading to higher revenue.
What is one way that injections/government spending can benefit firms?
The process of deciding which goods and services to produce when economic resources are limited.
What is resource allocation?
The value of the next-best alternative you give up when you make a choice.
What is opportunity cost?
The total market value of all goods and services produced within Australia in a given timeframe.
What is Gross Domestic Product (GDP)?
When two or more people or things rely on each other to function.
What is interdependence?