SS6E8 The student will analyze different economic systems. SS6E9The student will give examples of how voluntary trade benefits buyers and sellers in Australia SS6E10 The student will describe the factors that influence economic growth and examine their presence or absence in Australia

 Describe the economic system used in Australia  Explain why international trade requires a system for exchanging currency between nations  Describe the role of natural resources in a country’s economy  Describe the role of entrepreneurship

 What is the economic system used in Australia?  Why is it necessary to exchange currencies for nations to trade?  How does the unequal distribution of resources affect Australia?

Economic System of Australia  Australia has a mixed market economy, and Australia’s economy was formerly based upon agriculture, but that would change into a dependency on mining, specifically iron ore and coal. The growth of Australia’s economy started due to trade with China and Japan. Both countries wanted wool, iron ore and coal from Australia. Australia today still relies on mining, but also gets money from entrepreneurs as well

Currency Exchange in Australia  The currency in Australian is called the Australian Dollar  One Australian dollar = 91 U.S. cents  Australian currency was formerly the pound and the pence

 Natural resources that drive Australia’s economy include  Coal  Uranium  Iron Ore  Bauxite  Gold  Zinc  Lead  Diamonds  Australia makes more money from its own natural resources than from any other business

 An entrepreneur is someone who has an idea for a good or service and takes risks to produce the good or service  Entrepreneurs know of the risks before the product is produced  Entrepreneurs help the economy to grow based on borrowing funds, use capital and human capital and natural resources  Australia’s entrepreneurship rate is very high, higher than the United States.  Australia creates many schools and training programs to help entrepreneurships