Module 1 - Understanding the Economy Flashcards
what are the different types of resources
natural, labour and capital
Explain what natural resources are and include examples
any sources of wealth that occur naturally, flour eggs wheat
Explain what labour resources are and include examples
effort people contribute into the production of goods and services, farmers technicians distribution
Explain what capital resources are and include examples
goods and services made to produce other goods and services, clothing for workers packing machines ovens
what is scarcity and how does the economic problem effect it
scarcity is not having enough resources to satisfy the vast needs and wants of our growing population because resources are devoted to one type of production can not be used to produce other things
What is opportunity cost and how does it solve scarcity
opportunity cost is the solution to scarcity because it highlights the cost of missing out on one thing so you can get another
What are the five different types of economic systems
Traditional/subtsince economy, market capitalist, planned capitalist, market socialist, planned socialist
explain the traditional/subsistence market and how does it answer the three economic questions
producers are self sufficient and make enough for surival not profit. What do they produce? whatever is available. How they make? how do they produce this is based on religion/culture. Whom can buy it? everyone that helps to make it
explain the market capitalist and how does it answer the three economic questions
producers exchange goods and services with consumers for money. What the make? whatever consumers are demanding. How they make it? whatever is the cheapest way. Whom they make it for? whoever can afford it
explain the planned capitalist and how does it answer the three economic questions
businesses/firms own the resources used to produce but governed decides the what, how and who to produce for (this type of economy does not currently exist
explain the market socialist and how does it answer the three economic questions
resources for production owned by government. what is produced?whatever consumers are demanding. how they make it? whatever the cheapest way is. Who they make it for? whoever can afford it (same as market capitalist)
explain the planned socialists and how does it answer the three economic questions
government determines what, how and who to produce for and own rpoduction resources. This type of system can cause a shortage of consumer goods because gov priorities for example defence over other things and thsi is when consumers turn to the black market
Explain how consumers and producers rely on each other
without producers, consumers will nto have teh reosurces needed to survive. without consumers producers will not have the money to produce goods and services
Explain the globalisation and how australia is linked with the global economy
globalisation: all countries are linked and should be seen as on global economy.
australia is linked through trade overseas, foreign direct investment, international labour market, technology, migration
