Hass Term 1 economics

• 5 Types of economy: Traditional/subsistence, market capitalist, planned capitalist, market socialist, planned socialist
• Market: People decide what to produce, how to produce, who to produce for
• planned: The government decides, what to produce, how to produce, who to produce for
• capitalist: The people and firms own most of the resources
• socialist: the government owns most of the resources
• types of produces

  • agricultural - farming
  • industrial - Goods
  • service - jobs
• types of consumers:

  • Loyal - stick with the same service from a business and rarely change
  • discount - like to buy things on sale
  • impulsive - put less thought on what they buy
  • needs based - buy only what they need
• role of government:

  • create laws
• role of government

  • create laws
  • provide consumer protection (ACCC)
  • education
  • collect tax
  • imports & exports
  • public parks
  • provide defence
  • public parks
  • Public schools
  • healthcare
  • research & development
• Role of government:

  • When producers produce and consumers consume or workers work, they are usually taxed
  • Types of tax: company, goods & services, Income
  • they tax because they use it to help and influence the community
  • The government spend money when people don't want it
  • This is due to several factors such as fall in economic activity or become something that is not profitable
• Financial institution: (banks) They store your money for when you need it and they use it to pay other people but charge them interest and you gain more money that way while the bank profits off interest
• Australia is a market capitalist economy
• Why do we trade: we trade because other countries have what we might need and we might have what they need.
• Some Australian imports: computers, petrol, clothing, rice, oil
• some Australian exports: coal, education, beef, wheat, copper
• Circular flow model: A diagram that shows the movement of money, goods and services in an economy.

  
• Capitalist: the equipment used, they get payed by interest or income

  Entrepreneurship: Individuals who start a business. Payed by profit or income

  Land: Natural resources. Payed by income or rent

  Labour: The people who produce things. they are payed by wages and income
• Scams: A scam is a term used to describe any fraudulent business or scheme that takes money from someone unexpectedly.
• Who do scams target: They target everyone
• scams catch you off guard when you don't expect it
• Types of scams: Attempts to gain you personal info - hacking, identity theft, phising
• Types of scams: buying or selling - false billings, classified scams, online and shopping scams
• Types of scams: Dating and romance - investment scams, betting and sport
• Types of scams: jobs and employment - Jobs and employment scams, pyramid scams
• Types of scams: unexpected winnings - scratchie, travel prices, emails
• Types of scams: threats and extortion - malware, ransom, threats to live, arrested
• How to avoid scams:

  • ACCC - Australian Competition and Consumer Commission
  • run scam watch
• Investment types

  • Shares
  • supperanuation
  • Property
  • cryptocurrency
• Superannuation - A regular payment made into a fund by an employee towards their future.
• how does superannuation work - employer pays a percentage of employees wages into a super fund, the super fund looks after the money until the person retires
• E.g - HostPlust, Australian superannuation funds