A Comparison of the Australian and North Korean Economies

Australia's economy is labelled as 'mixed-market' -this involves both individuals and the government playing a role in the economy. What to produce is determined by the interaction of consumers, businesses and the government in the market place. Consumers are sovereign in the market place because although business people try to influence what they buy through advertising, it is ultimately consumers' decisions that prompt them to produce one good over another. Australian individuals have quite a lot of economic freedom however the Australian economy works within an overall framework of government regulations which safeguard society. The government legislates hours of work and minimum wages, sets costs for some products and pays subsidies and social service benefits. The distribution and allocation of what is produced still takes place, largely through the market or price mechanism, but the government mediates these to grant cash subsidies, charge taxes, loan money and run its own businesses.
The economic problem will forever create the need for an economic system. Australia's mixed structure is quite a good balance of economies however problems still arise and the efficiency and dependability is questioned.…