Good Mafternoon! 4/24/14
EQ: What is the economy of Australia like?
HW: None :) *Reminder: GA OAS by 4-28
Update your TOC and open up your ISSN to
DateDate ## TitleTitle
4-24 82 Australia Econ
• one of the freest economies in the worldone of the freest economies in the world
• It is technically a mixed economymixed 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 closeAustralia’s is close.
– It is considered one of the most free economiesone of the most free economies
in the world.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 businessesfree to own their own businesses
and propertyand property.
– They decide what they want to produce.
• Buyers and sellersBuyers 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 businevery 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 moneySelling 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%.literacy rate is nearly 100%.
• The workforce is well-trained and well-educatedwell-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 entrepreneurshipAustralia 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 jobsprovide jobs for
• Read coachbook pages 194-202
• Complete problems #496-515
• Do this on page 82 of your ISSN
• when you finish:when you finish:
–look at your handout from page
81- complete the Australia
–If you finish that work on your
CRCT review packet