AUSTRALIA’S ECONOMY

Economic System

» Australia’s economy is a MIXED economic system.» Individuals are free to choose what and how to

produce» Very little government involvement / regulations.

Natural Resources

» Arable land for crops and grazing animals.» Minerals – major export – coal, iron ore, copper,

tin, gold, silver» World’s #1 exporter of WOOL

Human Capital

» Australia invests heavily in human capital.» Children are required to attend school from

ages 6 to 18.» Literacy rate is nearly 100%

Capital Goods

» To increase GPD, countries must invest in capital goods.

» Australia’s businesses use advanced technology to help companies run more efficiently.

Entrepreneurs

» Australia is a world leader in entrepreneurship.» One in twelve adults own their own business.

Trade/ trade barriers

» Australia has tried to encourage trade with other countries so that their products can be sold around the world.

» Very few trade barriers in Australia» In a good location to trade with Asian countries.