A mixed economy is one where the decisions concerning drudgery and distribution are made by a cabal of market forces and government decisions. Each country attempts to find the lift out mix of relying on market forces and government intervention in attempting to solve the economic problem.
In a mixed marketplace Economy like Australia they attempt to solve the economic problem by asking the following questions. What to produce, how much to produce, how to produce and how end product will be shared. These questions are primarily determined by the operation of markets. However, governments intervene to a confineed extent to modify certain market outcomes.
The government can influence what is produced in many ways. The government can be a maker itself. It can provide collective goods and services such(prenominal) as schools, roads, bridges and defence force, as well as competing presently with private enterprise and providing certain consumer goods and services such as ABC television. It can also further some score of productions through subsidies, tax incentives or start up funding.
It can also limit, or even prohibit, the production of goods that are considered undesirable, such as illicit drugs
The next question is how much to produce. The judicature can influence the scale of production. The government can limit the production of some goods or delivery of some services. For modelling State Governments regulate the number of literary hack licenses that are issued to taxi drivers, in order to ensure that taxi driving dust a viable long-term business. They can also encourage greater provisions of certain goods and services that are desirable. These are sometimes referred to as merit goods, and examples of this include subsidies for art and education. The government can encourage Australian producers competing with foreigners to...If you want to get a full essay, order it on our website: Orderessay
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