Economy Types
economy based on traditions and values
What is a traditional economy?
Minerals, forests, water, fertile land and other resources that are created by nature
What are natural resources?
What is gross domestic product (GDP)?
The exchange of goods and services between many countries of the world
What is global trade?
Taxes placed on imported goods by Australia that force consumers to pay a higher price to protect Australian businesses from foreign competition
What are tariffs?
What is a command economy?
Natural resource abundant in Australia because it is an ISLAND country
What is water?
The level of wealth and material comfort available in a country
What is standard of living?
This occurs when a nation chooses to make goods and service that they can produce at a low opportunity cost
What is specialization?
Restrictions on the amount of a good that can be imported into Australia
What are quotas?
economy based on supply and demand
What is a market economy?
When Australia invests in man-made materials such as machinery and technology to increase productivity and effieciency, the country is investing in this factor of production.
What are capital goods?
This country has one of the highest standards of living among all countries in the world due to high wages and affordable cost of living compared to other developed countries
What is Australia?
Australia specializes in exporting these three natural resources
What are iron ore, coal and petroleum gas?
Australia decides to not trade with a particular country
What is an embargo?
free market economy with some degree of government laws and regulations to protect consumers
What is a mixed economy?
Australia invests about 5 percent of its GDP in education; the country is investing in this factor of production.
What is human capital?
system used to calculate what one nation's currency is currently worth in terms of another nation's currency
What is exchange rate?
goods and services produced in one country and sold to buyers in another country
What are exports?
government-imposed restrictions on the flow of international goods and services
What are trade barriers?
Australia's type of economy
What is a mixed economy?
Australia supports this factor of production by requiring fewer steps to start a business, keeping government regulations to a minimun, and offering tax cuts to small business owners.
What is entrepreneurship?
Gross domestic product is a measure of the_________ in a nation's economy.
What is strength?
a good or service bought in one country that was produced in another
What is an import?
A period when people or goods are held in isolation to prevent the spread of disease, insects or other pests
What is quarantine?