• one of the freest economies in the world
• It is technically a mixed economy, but it’s
close to market because there are very few
rules to restrict the market.
• government does not own major industry
– prices are set by the agreement of buyers and
sellers rather than by government rules
• There are no truly pure market economies,
but Australia’s is close.
– It is considered one of the most free economies
in the world.
– Businesses operate without too many rules from
– People are free to start a business and can do
– Courts use the laws of Australia to protect the
property rights of citizens.
• People are free to own their own businesses
– 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
Four Factors of Economic Growth
• There are four factors that determine a
country’s Gross Domestic Product for the
1. Natural Resources
2. Human Capital
3. Capital Goods
Australia’s Natural Resources
• Arable land is a valuable resource.
– Farmers grow lots of crops.
– The land also provides pasture for beef cattle (an
• 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.
– world’s leader in bauxite (used to make aluminum)
• Selling these natural resources brings in money
from all over the world.
Australia’s Human Capital
• Australia invests heavily in human capital.
• Children are required to attend school from ages 6
– 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 Australia’s standard of
living - one of the highest in the world!
Capital Goods in Australia
• Australia’s businesses use advanced
technology to make their companies work
• If a company does not keep its machinery
up-to-date, other companies will be able
to produce similar goods for a better price.
• 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
• 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
• You are going to be creating your own
version of The Important Book. Your topic
is going to be Economic Growth in
• Please Include:
• A Cover = The Important Book of
Economic Growth in Australia
• A page for each factor of economic growth
– Natural Resources
– Human Capital
– Capital Goods
• An illustration for each factor