Hass Economics and Globalisation

Needs

goods or services that are essaintial to our survival - food, clothing, healthcare

Wants

goods or services desired by consumers but are not essential to our survival - Phone, car

Supply

The amount of a good or service that a producer is willing and able to sell at a particular price or time

Demand

quantity of a good or service that buyers are willing and able to buy at all possible prices during a certain time period

Consumer

Influence what is produced, how much is produced and at what cost

Producer

creates or supplies goods or service for consumers to buy

Market

where buyers and sellers exchange goods and services

Scarcity

limited quantity of resources

Opportunity cost

cost of the next best alternative forgone

Interdependence

How we rely on each other to satisfy our needs and wants

Law of Supply

as the price of a good increases, quantity supplied will increase

Law of demand

as a price increases, demand for it decreases

Aim of economy

To satisfy the most amounts of needs and wants with the limited resources available

Economic Problem

how to satisfy unlimited wants and needs with limited resources.

Six characteristics of Wants

Complementary- some wants go with others, movie popcorn

Recurrent- again and again, coffee

Individual- items that people as individuals want

Competitive- limited income means choices, phone or shoes

Collective- wants by whole community provided by gov, airport

Unlimited- never ending

Three questions every economy must answer

What to produce, How to produce, For whom to produce - How much to produce

4 types of resources/ factors of production

Capital- human made (pizza oven)

Enterprise- skill to bring together resources (CEO)

Labour- work done to produce (baker)

Land- Natural resources (air, water, wheat)

Planned Capitalist Economy

Resources are largely owned by individuals and businesses, questions determined by government, no country exists.

Market capitalist economy

Resources largely owned by individuals, questions answered by consumers, Australia

Planned socialist economy

Resources largely owned by government, questions determined by government, North Korea

Subsistence/traditional economy

producers are self sufficient, produce what they need to survive, use resources available at hand, no money exchanged, few villages in Northern Alaska

Australias Economy

Mixed (modified) market economy

Government role in Australia

investment in non profit areas like transperth, roads, providing public goods and services, taxing goods with negative impact, progressive income tax system, providing welfare to weak and vulnerable.

Production Possibility Frontier/Curve

A model that shows all combinations of goods and services that can be produced by an economy given all available resources and level of technology

Why use a PPF

it displays why an economy might shift from producing one good to produce another and to show efficiencies of production

Assumptions of PPF

The amount of resources available are fixed

The technology available is fixed

The economy can only produce 2 goods

Globalisation

process that involves all countries being linked together exchanging: ideas, products, cultures

Interconnections

Places are connected by different meaning and reasons

Connections to place

spiritual, economic, cultural, historical

Food security

when all people at all times have access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.

Three things needed for food security

Food availability, food accessibility, knowledge and resources use food appropriately

Staple foods

rice, wheat and corn

Non price factors affecting supply

new technology, price of resources

Non price factors affecting demand

income, tastes and preferences

six concepts of economics and business

Economic performance and living standards

Allocation and markets

Specialisation and trade

Interdependence

Making choices

Scarcity