9 Global mobility
Before you start
Main focus
Every day newspapers and the media have reports about the state of the economy, what the value of the Australian dollar is, the prospects for employment and how well the economy is operating. We are also constantly told about the products we can buy both in retail stores and online. It is important, therefore, that we have some kind of understanding about how the economy operates and where Australia, as an economy, fits in with the rest of the world, particularly our Asian neighbours. This chapter examines the participants in the economy such as consumers, producers, governments and employees. It also explains how needs are satisfied through the production and distribution of goods and services.
Why it’s relevant us
The economy is a complex thing and it affects all of us every day. Adding to this complexity are the constant interactions between consumers, producers, workers and governments. As sometimes there are competing demands for goods and services and limited resources (the problem of ‘scarcity’), decisions need to be made as to how goods and services will be produced and distributed.
Inquiry questions
- What types of economic decisions are made by government, businesses, employees and individuals?
- How are wants satisfied through the production of goods and services?
- Why is Australia interdependent on other countries?
- What are the main items traded with Asian countries?
- What impact can global events have on the Australian economy?
Key terms
- Budget deficit
- Budget surplus
- Consumer
- Comparative advantage
- Composition of trade
- Direction of trade
- Factors of production
- Free market
- Mixed economy
- Price mechanism
- Primary sector
- Producer
- Tertiary sector
- Trade Confidence Index
Let’s begin
Every day we have to make decisions about what we will buy as individuals; businesses and governments do the same thing. This chapter examines the input of consumers, governments and producers into the economic questions of how decisions are made regarding the key economic problem of scarcity and how governments make economic decisions regarding the use and distribution of economic resources.