Australia

1
Australias Economy

• Unit 12 Notes

2
Australias Economy

• one of the freest economies in the world
• It is technically a mixed economy, but its close
  to market because there are very few rules to
  restrict the market.
• government does not own major industry or
  business
• prices are set by the agreement of buyers and
  sellers rather than by government rules

3
Australias Economy

• There are no truly pure market economies, but
  Australias is close.
• It is considered one of the most free economies
  in the world.
• Businesses operate without too many rules from
  the government.
• People are free to start a business and can do so
  quickly.
• Courts use the laws of Australia to protect the
  property rights of citizens.

4
Australias Economy

• People are free to own their own businesses and
  property.
• They decide what they want to produce.
• Buyers and sellers are able to agree on prices,
  and competition between sellers helps to keep the
  prices good for buyers.
• Business owners and consumers can depend on good
  laws to protect them.
• The courts are considered fair and honest.
• It is very easy to start a business in Australia
  the paperwork usually takes less than a week!

5
Economy Continuum
Command
Market
US
UK
Germany
Cuba
Russia
Australia
6
Four Factors of Economic Growth

• There are four factors that determine a countrys
  Gross Domestic Product for the year
• Natural Resources
• Human Capital
• Capital Goods
• Entrepreneurship

7
Australias Natural Resources

• Arable land is a valuable resource.
• Farmers grow lots of crops.
• The land also provides pasture for beef cattle
  (an important export).
• Minerals are a major export and include coal,
  iron ore, copper, tin, gold, silver, uranium,
  nickel, tungsten, mineral sands, lead, zinc,
  diamonds, natural gas, petroleum.
• worlds leader in bauxite (used to make aluminum)
• Selling these natural resources brings in money
  from all over the world.

8
Australias Human Capital

• Australia invests heavily in human capital.
• Children are required to attend school from ages
  6 to 18.
• Taxpayers pay for schooling for all children.
• The literacy rate is nearly 100.
• The workforce is well-trained and well-educated.
• The healthcare system is very good.
• All of these factors improve Australias standard
  of living - one of the highest in the world!

9
Capital Goods in Australia

• Australias businesses use advanced technology to
  make their companies work more efficiently.
• If a company does not keep its machinery
  up-to-date, other companies will be able to
  produce similar goods for a better price.

10
Australias Entrepreneurs

• Australia is a world leader in entrepreneurship.
• One (1) in twelve (12) adults owns his own
  business.
• Laws in Australia are good for businesses because
  they protect entrepreneurs their property, make
  it easy to start a business, and have few rules
  to restrict businesses.
• Entrepreneurs are good for Australia.
• Businesses keep economy moving provide jobs for
  workers.

11
Your Task

• The Important Book by Margaret Wise Brown was
  written in 1949 and is still in print today! It
  contains eleven short essays all written in the
  same style, with an introductory fact, five
  supporting details, and a repeat of the most
  important first fact.
• You are going to be creating your own version of
  The Important Book. Your topic is going to be
  Economic Growth in Australia.

12
Your Task

• Please Include
• A Cover The Important Book of Economic Growth
  in Australia
• A page for each factor of economic growth in
  Australia
• Natural Resources
• Human Capital
• Capital Goods
• Entrepreneurship
• An illustration for each factor