Year 9 Economics

What does PMI stand for?

Plus - what is a benefit?

Minus - what is a negative?

Interesting - how will this affect other aspects e.g. other brands, breadth of customers

Three basic economic questions

what to produce, how to produce it, and for whom to produce.

Why may businesses ask economic questions?

To ensure the success of their business and have an idea of their consumers preferences and how they differ from their competitors.

How can they gather evidence?

They can conduct market research, surveys and analyse sales data

Basic economic problem

scarcity, which is the fundamental issue of unlimited human wants and needs conflicting with limited resources.

3 types of resources

Natural Resources - timber, steel

Labour Resources - workers

Capitol Resources - operation by machines

Define economic system

An economic system is a way a society organizes the production, resource allocation, and distribution of goods and services

Traditional Economy

The traditional economic system is predominantly found in rural and non-industrialized regions, where the community relies on honed survival practices, like subsistence farming, hunting, fishing, and gathering to sustain their livelihoods.

Market Economy - Capitalist

A market economy is an economic system characterized by competition and free trade, where private property and minimal government interference play crucial roles

Planned Economy - Communist

an economy in which production, investment, prices, and incomes are determined centrally by the government.

Mixed Economy

an economic system combining private and state enterprise

Five sector circular flow model

This depicts the flow of money within an economy. It depicts the income vs the expenditures and how the resources put in compare to the output.

Producers

Make or provide goods and services

Consumers 

Purchase those goods or services

Government sector

Taxes and government spending

Financial sector

Savings and investment

Overseas sector

Imports and exports

Leakages

Saving, taxation, imports

Injections

Investment, Government spending and exports

Globalisation

The definition of Globalisation is the

growing interdependence of the world's

economies, cultures, and populations,

brought about by cross-border trade in

goods and services, technology, and flows

of investment, people, and information.

Manufacturing in Asia

Lower labour costs

Lower energy costs

Australia’s trade relationship with China

Mutually beneficial

China sells electronic equipment, vehicles, machinery and iron and steel products

Australia sells iron ore, natural gas and gold

Relationship based on Covid, tarrifs,