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39 Cards in this Set
- Front
- Back
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what are the 3 economic decisions? |
what to produce for whom to produce how to produce |
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describe a planned economy |
government plans the economy decides economic decisions decisions centralised no pure planned economy now |
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describe a mixed economy |
its unlikely for a economy to be strictly planned or market driven by consumers and producers government has a say |
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describe a market economy |
when a buyer and producer agree on a trade economi decisions open to all |
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households participation in an economy |
provide the factors of productions to businesses to produce goods and services purchase goods and services receive and income for labour |
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business participation in the economy |
produce goods and services to households through the factors of production provide income to households |
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government participation in the economy |
collect tax from households and businesses which are spent on government spending to provide public services |
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financial participation in the economy |
households put in savings which are invested into businesses |
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overseas participation in the economy |
households import goods and services in exchange of their money as well as businesses as they also export goods and services |
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what is driving globalisation?
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national comparative advantage -natural resource advantage -larger pool of workers advantage reduced transport cost -reduced cost for advanced transport technology -containerisation costs reduced |
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economic impacts affecting Australia |
-uk leaving EU -mining boom -sydney olympics -the great depression -GFC -war |
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what caused the GFC? |
the us investors bought many mortgages to sell for profit. share holders bought these mortgages with a higher demand. banks rose the house prices but no one could afford them. houses were left unsold and mortgages left unpaid so house prices decreased so many investors went broke. |
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why did Australia survive the GFC? |
- the financial system was stronger -government policy increased spending -banks didn't need support from government -the reserve bank intervened -increased trade with trading partners -in the middle of a mining boom |
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how was our economy effects by japans natural disaster? |
- AUS car industry stopped as parts couldn't be imported from Japan -Japan's uranium exports decrease so demand for AUS natural gas increased -Japan's fishing fleet decrease so higher demand for Aussie beef -death of producers and consumers declined the fast economy |
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what is APEC? |
is a forum of 21 pacific rim member economies that promotes free trade throughout the asian pacific region |
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what are credit unions |
-not for profit -paying members higher investment rates -encouraging members to save -offer loans to member when it exceeds earnings -safe and convenient place to access affordable financial services |
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what is a stock exchange? |
a market in which securities are bought and sold |
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what is the purpose of a stock exchange? |
Stock exchanges were originally conceived for the public interest and had a clear public purpose: to allow companies to raise equity from a large pool of investors and to provide a market for investors to later sell their shares in those companies. |
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what is a scam? example? |
any strategy to take your money dishonestly. card skimmer, phishing, lottery scam and work from home scam |
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what is a managed fund? |
an investment fund run on behalf of an investor by an agent (typically, an insurance company). |
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what are shares? |
one of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits. |
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what are the main services provided by banks to consumers and producers? |
-transaction account -savings account -credit card -personal loans -morgages |
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what is competitive advantage? |
when economies (producers) have a natural resource advantage or a large pool of workers to faster and more efficiently produce goods and services |
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what are some affective ways to gain competitive advantage? |
-experienced staff -appropriate location -good product range and pricing -prompt delivery service -affective marketing strategy -adopting latest technology |
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why are banks so important in an economy? |
-conduct monetary policy -maintain a strong financial system -issue the nations currency\ -managing gold -managing foreign exchange |
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why is competitive advantage a good thing? |
-more consumer choice -cheaper products -better innovation -better efficiency of products -motivate businesses to strengthen -better service |
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what is product differentiation? |
the way products are developed and advertised with unique selling points to make them appear different from others on the market |
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what is a budget deficit? |
government spends more money than it receives in tax revenue |
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what is a budget surplus? |
government spends less money than they receive in tax revenue |
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what is direction of trade? |
refers to the particular countries and kinds of countries towards a country's exports are sent and from which its imports are bought |
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what is composition of trade? |
types of products (goods an services) being trade |
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what is comparative advantage? |
the ability to produce goods and services at aa lower opportunity cost than other firms or individuals. the ability to sell them at a lower price than competitors |
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what is economies of scale? |
a proportionate saving in costs gained by an increased level of production |
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what is a multination company? |
an organisation with branches in more than one nation |
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what is gross domestic product? |
value of all goods and services produced in a year |
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what is an import? |
goods and services produced overseas and sold in our economy |
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what is an export? |
good or services produced within our economy and sold overseas |
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what is balance of trade? |
the difference between imports and exports for an economy over a period of time |
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what is a managed fund? |
an investment fund run on behalf of an investor by an agent (typically, an insurance company). |
