Economic Principles in Australia

Study Notes

Goods are physical items that can be touched, such as clothes, food, and technology.
Services are non-physical things that provide assistance or experiences, such as concerts, haircuts, and tutoring.

Scarcity is the concept that resources are limited while needs and wants are unlimited.
Opportunity cost is the value of the next best alternative that is given up when making a choice.

Natural resources are materials that are extracted from the earth, such as coal, fish, and wood.
Labour resources are the skills and efforts of workers used to produce goods and services.
Capital resources are man-made tools and infrastructure used in production, such as machinery, buildings, and roads.
Enterprise is the ability to combine resources and take risks to create value or profit.

Australia has a market capitalist economy.
Producers supply goods and services.
Consumers purchase goods and services using money earned from providing labor, capital, or other resources.
Free enterprise allows individuals to start businesses and earn profits.
Participants are interconnected through production, consumption, investment, and government involvement.
Australia has a significant overseas sector and is integrated into the global economy through trade, investment, labor movement, technology, and migration.

Australia's economy is relatively small but relies heavily on international trade.
Exports are goods and services produced in Australia and sold overseas, including agricultural products, minerals, and services.
Imports are goods and services produced overseas and sold in Australia.
Australia's economic growth and welfare are directly affected by its position in the global economy.
The exchange rate influences the relative prices of exports and imports.
Globalisation means that countries are increasingly interconnected through trade, investment, and technology.
Australia's geographical location and economic relationships with Asian nations are key factors in its economic prosperity.