HUMANITIES REVISION

circular flow of income

how money moves from producers to households and bac kagain in a loop

role: household sector

sellers in the market for resources

role: firms

produce goods and services, which they sell to consumers for a price

role: financial sector

takes funds from savers (through deposits) and lends them to those who risk to borrow

role: government sector

provides legal and social framework within which the economy operates

role: overseas sector

to undertake external activity that is outside the control of the domestic economy

contraction

a period when economic output declines

expansion

the economy is moving out of reccesion

equilibrium

condition or state in which economic forces are balanced

leakages

withdrawls from economy (form of saving, taxes)

injections

intro of income into flow

international trade

the exchange or trade of goods & services between different nations

internatinal trade benefits to aus

creating jobs and prosperity, opening opportunities for aussie businesses to expand

specialisation

the process where a company or individual decides to focus their labour on a specific type of production

nations specialise in goods & services

countries become better at making the product they specialise in

Australias top imports

-machinery -vehicles -electrical machinery equipment

Australias top exports

-iron ore -coal -petrol

Australias top exports partners

-china -japan -united states

australias top imports partners

-china -japan -united states

globalisation

process of interaction with companies and government worldwide

benefits to globalisation

-access to new cultures -spread of technology -lower costs for production

costs of globalisation

-environment costs -labour drain -tax competition and avoidance

multinational corporations

any corporations that is registered and operates in more than one country at a time

characteristics of multinational corp

-very high assets and turnover -network branches -continued growth

investment types

-cash -property -shares

cash reward

larger amounts of money can be invested in cash investments issued by state and federal governments

cash risks

cash investments have little risk and consequently provide a modest return

term deposit

an account that locks away and invest your money for a fixed period of time, between one month to five years

property rewards

consistant income, tax advantages, rental income

property risk

lack of liquidity, difficult management

shares rewards

capital growth, dividends, liquidity, shareholder benefits

share risks

share prices can fall rapidly

scam

a dishonest scheme (fraud)

ways consumers can protect themselves from scams

-keep passwords in a safe place -keep pin numbers in safe place -careful how much info being shared on socail media

how workplace has changed die to covid

remote working was the most reported uptake of new technology from covid

biomes

a large naturally occuring community of flora and fauna occupying a major habitat

australian biomes

-desert -savannah -tropical -great barrier reef

location: desert biomes

-north america -southwestern US -mexico

climate: desert biomes

38C (day) -3.9 (night)

vegetation: desert biomes

-prickly pears -cactus -yuccas