Economic Vocab
Define needs
Things that people have to have in order to live.
What are labour resources?
Human resources such as time, energy, skill, or creativity
What is a leakage?
What is subsistence economy?
aka Traditional, where producers and consumers are the same. People make enough to sustain themselves
Most of Australia's top trading partners are in what continent?
Asia
define profit
The extra money you have made compared to the costs of doing something.
What are natural resources?
what are the 5 sectors in the circular flow model?
consumers, producers, financial institutions, government and overseas
In a planned economy, who has control of the production resources?
The government
proximity, cheaper imports, good relationships, smaller nations
What are exports?
Goods that Australia is selling to other countries.
What are capital resources
Manufactured resources used to start a business e.g. factories, investment money
what 2 things do producers provide for consumers?
income and output (products)
What kind of economic system is Australia? Explain how you can tell.
Australia is a mixed market economy. The government has low control over what is being produced and consumed, but does have some influence.
Why is Australia's trade relationship with China unstable?
Our governments have differing views, Australia is allies with USA, Australia accused China of starting COVID etc.
what are consumers
People who use goods and services
natural resources that are not processed e.g. natural gas, iron ore, gold, zinc, lithium
what 2 things do consumers provide to producers?
labour and expenditure
True Market Economy
Why does Australia rely on trade? Give 3 reasons for the points.
Don't have manufacturing facilities here, provides us income, gives access to resources we don't have, access to new technology etc.
What is unemployment?
When people in a country are unable to find work, despite wanting to.
What is Australia's number 1 imported resource?
Telecommunications material
name the leakages from consumers into sectors of economies
savings, taxation and imports
What economic system is considered communist?
BONUS 200 pts: name a communist government in the modern day
Planned
Bonus: Soviet Russia, Cuba, China, North Korea
What are the disadvantages of importing goods? Give 3 reasons for points.
We rely on other countries for resources and goods, Production standards not the same in other countries, Complicated transport, storage and other issues, Legal and political challenges, Exchange rate fluctuations