Sectors in the economy

Sectors in the economy/ participants in the economy

• Government

• State

• People

Sectors in the economy (starts with H)

Sectors in the economy (starts with F)

Sectors in the economy (Fn)

Sectors in the economy (O)

What does the government sector do?

Answer explanation

They receive taxation revenue from Households and Firms in the form of income tax and company tax.

They spend this money on public goods and services, such as roads, parks, schools and hospitals.

What does the household sector do?

Answer explanation

They provide their time and skills or ‘labour’ (a resource) to Firms in exchange for income (wages).

They are consumers, who purchase goods and services from Firms.

What do the firms do?

Answer explanation

They produce output (goods and services), which they sell to consumers for a price. So they receive revenue from the Household sector.

What does the Financial Sector do?

Answer explanation

They receive savings from Households and Firms.

They help Households and Firms invest by lending them money

What does the overseas sector do?

Answer explanation

Australia exports (sells) goods and services, produced by businesses in Australia, to other countries.

Australia imports (buys) goods and services, produced by businesses in other countries.