THE FIVE BUSINESS SECTORS - BUISNESS TERM 2 YEAR 10 QCAA (copy)

Household sector

*this sector is made up of the individuals in the economy

• They provide their skills and time or ‘labor’ (a resource) to Firms in exchange for income (wages).

• They are consumers, who purchase goods and services from Firms

• they pay taxes to the government

• they may borrow from, or save money with the financial sector.

Firms/business sector

This sector is made up of all the businesses in the economy

• The produce the output - goods and services that the households consumers purchase (receiving revenue from the household sector).

• they pay taxes to the government

• they may borrow from or save money with, the financial sector.

financial sector

this sector is made up of all the banks and financial intuitions in the economy

• they receive savings from the Household and firms

• they help households and firms invest by lending them money

Government sector

This sector is made up of all bodies in national, state and local governments.

• they receive taxation revenue from households and Firms in the form of income and company tax

• they spend this money on public goods and services/ infrastructure projects like schools, roads, hospitals and jobs.

overseas/international

This sector is relates to australia’s trade with other nations

• Australia exports (sells) goods and services, produced business in Australia and shipped to other counties.

• Australia imports (buys) goods and services, produces by businesses overseas and shipped to Australia.