Download AO Government and Economics 031915

AUSTRALIA
Government & Economics
Government
Parliament vs. President
• Parliamentary
– Legislature controls the
power – Parliament
– Prime Minister
• Head of government
• Chosen by majority
party in the legislature
• Stays in office for a
designated period
unless their party loses
the majority
• Fusion of powers
• Presidential
– Executive and Legislative
branches are separate
• Separation of powers
– Checks and Balances
between 3 branches
– President is elected by the
voters after a specific
amount of time
Australian Government
•
Federal parliamentary democracy modeled after Great Britain’s government
– Federal – Federal government shares power with the states
– Parliamentary – type of legislature (Parliament, Prime Minister) . . . Has a constitution
. . . Represents the people
– Democracy – each citizen has the right to vote and personal freedoms
• Do not have a specific Bill of Rights but rather “understood freedoms” – speech,
press, vote, equal rights, etc.
– All citizens are required by law to vote in elections at age 18 or they have to pay fines
• Need a good excuse . . . Sick, in jail, handicapped
• Mandatory (COMPULSORY) voting established in 1924 – over 50% didn’t vote . .
. Over 90% vote – largest percentage in the world.
Australian Government
• 3 Branches:
– Executive:
• Head of Government: Prime Minister
– Member/Leader of Parliament from the majority
party – enforce the laws
– Current: Prime Minister Tony Abbott
» In office since 2013
– Has a cabinet made up of members of
Parliament. Each member runs a different part of
the government.
• Head of State: Queen Elizabeth II
– She has no real political power
– Acts as a figurehead
– Appoints a governor-general to represent her in
her absence
» Current - Peter Cosgrove - 2014
– Legislative:
• Parliament: bicameral (2 houses) –
elected by the people
– Senate: 76 members
– House of Representatives: 152
members
• Represent the people and make new
laws
– Judicial: interprets the law
• High Court of Australia: 7 judges
named by governor-general
– What other country is this system
similar to?
– Member of Commonwealth of Nations
• Handout: Fact v. Opinion
Who’s in Charge?
Summarizing Activity
Economics
Review . . . Types of Economies
TYPES OF ECONOMIC SYSTEMS
Definition
Associated Terms
1) Market economy
An economic system in
which individuals own and
operate the factors of
production.
Free enterprise
Capitalism
2) Command economy
An economic system in
which the government
owns and operates the
factors of production.
3) Traditional economy
An economic system
based upon customs and
traditions. Economy is
based upon agriculture
and hunting.
4) Mixed economy
An economic system that
has features of both
market and command
economies.
Examples in Practice
Socialism
Communism
Cuba
China
Non-Industrialized
Agrarian societies
Haiti
Aborigines
United States
Great Britain
Japan
Australian Economy
• Australia has a mixed economy based on capitalism (like
ours!)
– What is a mixed economy?
– What other terms can be used to refer to a MARKET economy?
– Describe Australia’s economy based on the continuum below?
Economic Continuum
Command
Economy
Cuba
Market
Economy
Russia
Germany
Australia – 83%
United States
Australia’s Factors of Production
•
What to produce?
– Dominated by the service sector
– However, agriculture and mining sectors account for the bulk of exports
– Limited number of rules to restrict the market
•
How to produce?
– Export focused
– Internationally competitive
– Economic Reforms
• Reduce trade barriers
• Increasing flexibility in the labor market
• Privatizing many government owned monopolies
– Easy to start and own a business
•
For whom to produce?
– Determined by the producers and consumers
– Business owners and consumers can depend on fair laws to protect them.
Specialization & Division of Labor
• Specialization
– Focus on producing one or
two goods really well
• Advantages
– Produce goods in less time
– Produce goods for less
money
• Example:
– Australia exports natural
resources to China
– Australia imports finished
products from China in return
•
Division of Labor
– Each individual person has their
own responsibilities
– Example:
• If you bake bread . . . .
• You DON’T grow the wheat,
harvest the wheat and make
the flour
Voluntary Trade & GDP
•
Currency is used to make trade
easier between countries.
– Currency exchange
– Exchange rate
•
Australian currency
– Australian Dollar
•
Entrepreneurship
– Laws in Australia are
favorable for new businesses
– Few rules to restrict business
– Provide jobs for workers & pay
taxes
•
Higher the GDP = Higher standard of living
•
Australia’s economy is very strong…Why?
– Very good education system
– Literacy rate is 99%
– Government invests in people by
building colleges and universities
– Very good health care system
• What types of investments are
these?
•
Australia has benefited from the investment
in technology, manufacturing and service
industries.
Updated technology keeps a company
competitive.
• What type of investments are
these?
•
Natural Resources
• Australia has many natural resources which contribute to their
economic success
• Minerals, wool, wheat, meat products, wine, timber (covers
21% of country – eucalyptus and acacia), fish (rock lobster)
• Manufactured goods include cars, clothing, packaged foods,
airplanes, steel & iron products, chemicals, and paper
products
– There are four industries important to the overall success of the
Australian economy.
• Tourism - service
• Fishing
• Farming
• Ranching
• Tourism:
– Australia’s main source of income
• Come from all around the world to visit the natural wonders
and learn of the aboriginal customs
– Popular tourist attractions include
• Great Barrier Reef
• Uluru (Ayers Rock)
• Sydney Opera House
• National Parks in the Outback