Economic growth in australia
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Transcript of Economic growth in australia
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Unit 12 Notes
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Four Factors of Economic Growth• There are four factors that determine a
country’s Gross Domestic Product for the year: 1. Natural Resources2. Human Capital3. Capital Goods4. Entrepreneurship
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Investment in Human Capital
• Human capital includes education, training, skills, and healthcare of the workers in a business or country.
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Australia’s Human Capital• Australia invests heavily in human capital.• Children are required to attend school from ages
6 to 18.– 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!
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Investment in Capital Goods• To increase GDP, countries must invest in capital
goods.– all of the factories, machines, technologies, buildings,
and property needed by businesses to operate
• If a business is to be successful, it cannot let its equipment break down or have its buildings fall apart.
• New technology can help a business produce more goods for a cheaper price.
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Capital Goods in Australia
• Australia’s businesses use advanced technology to make their companies work more efficiently.
• If a company does not keep its machinery up-to-date, other companies will be able to produce similar goods for a better price.
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The Role of Natural Resources• “Gifts of Nature”• Natural resources are important to countries
because without them, countries must import the resources they need (costly).
• A country is better off if it can use its own resources to supply the needs of its people.
• If a country has many natural resources, it can trade them with other countries.
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Australia’s Natural Resources• Arable land is a valuable resource.– Farmers grow lots of crops.– The land also provides pasture for beef cattle (an
important export).• 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 natural resources brings in money from
all over the world.
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The Role of Entrepreneurship• People who provide the money to start and
operate a business are called entrepreneurs.– These people risk their own money and time
because they believe their business ideas will make a profit.
• Entrepreneurs must organize their businesses well for them to be successful .
• They bring together natural, human, and capital resources to produce foods or services to be provided by their businesses.
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Australia’s Entrepreneurs• 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 workers.
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Gross Domestic Product
• GDP is the total value of all the goods and services produced in a country in one year.
• It tells how rich or poor a country is; it shows if the country’s economy is getting better or worse.
• Raising the GDP of a country can improve the country’s standard of living.