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Economics term 2 - Coggle Diagram

- - - - Australia uses the progressive tax system to help people get out of poverty, making people who earn less income, pay less tax
        
        Welfare is entitled to people who need help financially and to support their wellbeing. Benefits of welfare include payments for food, services, locating affordable housing prices, supporting child medical care, and future poverty prevention.
- - - - Examples of a service are hairdressers and doctors
    - - Examples of a good is food and pens
      - Private goods are goods or services restricted to an individual that purchased the good for their own consumption.
    - - Consumers are people who buy goods and services to satisfy their wants and needs.
        
        A need is an essential item for survival
        
        A want is a desire for something
      - Producers are people who create goods and services and sell them to consumers
        
        There are many types of producers, the main three types of producers are:
        
        Sole trader: Also known as a sole proprietorship, is a individual business, owned by one person.
        
        Partnership: A form of business where two people share ownership, and both share the responsibility to manage the business and income.
        
        Corporation: A business structure that gives a separate legal entity to the owners. This is more complex and expensive to set up.
      - Supply and demand
        
        Supply means the amount of a product is available to consumers
        
        Demand is the desire for a good or service
        
        When supply is high, the price of a good or service is lowered.
        When the supply is low, the price of a good or serviced is raised
        
        An equilibrium is when the supply and demand is balanced.
        
        Scarcity means to not have enough of something
        
        A surplus is when supply is exceeding the demand.
      - Factors of production
        
        Land is any natural resource used to product goods or services
        Coal is an example of Land.
        
        Labour is the work that people contribute to the production of goods and services.
        Waiters are examples of Labour.
        
        Capital is the machinery and tools to create the goods and services.
        Stoves are an example of Capital
        
        Enterprise is someone who uses all factors to produce a good or service.
        Entrepreneurs are examples of enterprise.
      - Major Australian businesses: - Kmart, Bunnings, Woolworths and Bankwest.
    - - Exports are goods and services that are produced in a country then sold to buyers in other countries.
        
        Developed countries such as Australia, exports iron ore, coal briquettes and petroleum gas.
      - Imports are goods and services bought from one country that was produced from another country.
        
        Australia's imports include: Machinery, vehicles, medical equipment and precious metals.
  - - - The commonwealth of Australia, is a country which uses the market economy.