The economic problem and how different groups attempt to solve it essay

The ACCC Australian Competition and Consumer Commission is the body responsible for enhancing the welfare of Australians through the promotion of competition and fair-trading as well as provisions for consumer protection.

Therefore more wants are being satisfied from the limited resources. They do this by influencing the cost of factors of production and the process of this production. Opportunity costs can be applied to the individual, business firms and the government.

Economic management is affected by decisions made through The Reserve Bank, and monitoring policies regarding unemployment and interest rates. In a market economy, what to produce and how much to produce are solely determined by the operation of price mechanism where consumer preferences and sovereignty establishes the pattern of production and how much output is being produced.

Therefore, because of government intervention, limited resources are used efficiently to maximize the satisfaction of both personal and collective wants. The economic problem arises because of the scarcity of resources in relation to unlimited wants.

This action by the government ensures consumer sovereignty. Governments also attempt to achieve the goals of full employment by providing training to the less skilled so that they can use more advanced technology. However each economy have their own methods of solving the economic problem. Australia has a comprehensive economic policy framework, with a sound, stable and competitive institutional structure.

These means fulfilling our desires are limited, so not all our wants can be satisfied with the limited resources available. There are market forces that influence demand and supply, but also government interventions to solve and reduce the effects of various economic problems.

To whom to distribute to, is last function of the economic system. Therefore more wants are being satisfied, as there is a more even distribution of income.

Therefore the government must avoid monopoly in the economy and enable consumers the sovereignty that is necessary. The government also acts as a provider for people such as pensioners, and allocate allowances to the disabled. Australia, like many other economies, is a mixed economy.

There are two ways: It is a highly open economy with very low barriers to trade and investment. The government provides most basic health, education and welfare services, however most decisions are left to the market.

Progressive Income Tax- higher income earners pay proportionally more tax than low-income earners. Health care is provided in the form of Medicare, and free education is offered to all from kindergarten to Year In comparison, a mixed economy such as Australia is a combination of free enterprise and government control.

These provisions by the government ensure that people can receive more resources, reduce spending in education and health, and thus use their money elsewhere and help circulate and increase economic prosperity. In a market economy, individuals and private firms make all major economic decisions.

Wants can be defined as materialistic desires of individuals or the community, which are desired because they give utility. The economic problem Not applicable Available: Therefore, in a mixed economy, the government will regulate some private sector activity and stabilize economic activity in order to solve the economic problem.

In a market economy, people with higher levels of skills, education and experience, which includes doctors, lawyers will tend to earn higher income of those with less skill and lower productivity.As each consumer group’s wants and resources varies greatly, each deals with trying to solve the economic problem in a different way.

The choices made by each individual are unique, depending on income, age, gender, living situations, education, voting, retirement and personal expectations. Different countries can attempt to overcome the economic problem in several ways; which is to apply a different economy system to their country.

What is the Economic Problem?

Due to scarcity consumers will now have to make a choice of what they want, by sacrificing the next best alternative when making a decision, this is known as opportunity cost. Different economies have different solutions to the basic economic problem.

The different economies included are traditional, market, planned and mixed. Many different countries embrace the following varying economies. As each consumer group's wants and resources varies greatly, each deals with trying to solve the economic problem in a different way.

Economic Mixed and Market Economy Essay Sample

The choices made by each individual are unique, depending on income, age, gender, living situations, education, voting, retirement and personal expectations. Contrast the way in which market economies and mixed economies attempt to solve the economic problem.

Economic Mixed and Market Economy Essay Sample. Market and mixed economies will use different methods to attempt to solve the economic problem in terms of decision-making, resource allocation and distribution. Explain the economic problem and how different groups attempt to solve it. Essay by mousse, High School, 11th grade, A+, March download word file, 2 pages download word file, 2 pages 3 votes3/5(3).

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The economic problem and how different groups attempt to solve it essay
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