Hums economics

Economy

The system of production, distribution, and consumption of goods and services

Household Sector

Individuals and families who consume goods and services and provide labour

Business Sector

Organisations that produce goods and services

Resources

Inputs used to produce goods and services: land, labour, capital, and enterprise

Land

Natural resources used in production

Labour

Human effort used in production

Capital

Tools, machinery, and buildings used to produce goods and services

Enterprise

The ability to combine resources to produce goods and services and take risks

Goods and Services

Physical items and activities that satisfy needs and wants

Supply

The amount of a good or service producers are willing to sell at a given price

Demand

The amount of a good or service consumers are willing to buy at a given price

Salary

A fixed regular payment, typically monthly, for professional or office work

Wage

Payment based on hours worked or output produced

Financial Sector

Institutions that manage money, including banks and superannuation funds

Financial Intermediaries

Institutions that connect savers and borrowers (e.g., banks)

Borrow

To receive money with the agreement to repay it later

Superannuation Funds

Savings for retirement managed by financial institutions

Investment

Using money to earn a return or profit

Mortgage Loan

A loan used to buy property, secured by the property itself

Government Sector

Provides public services and collects taxes to fund them

Globalisation

The increasing interconnectedness of countries through trade, investment, and technology

TNC (Transnational Corporation)

A company that operates in more than one country

Cyclical Unemployment

Job loss due to downturns in the business cycle

Seasonal Unemployment

Job loss due to seasonal changes in demand

Structural Unemployment

Job loss due to changes in industry or technology

Frictional Unemployment

Short-term unemployment during job transitions

Hidden Unemployment

People not actively seeking work but would accept a job if offered

Enterprising Behaviour

Taking initiative, being innovative, and solving problems creatively