Economics seek to make sense of the economic problem; it is a discipline in which people try to figure out how to organize production and economies so that the max number of wants can be met. Economics is the branch of knowledge concerned with the production, consumption, and transfer of wealth. Today I’ll be talking about 3 different economies and the procedure they use to solve the simple economic problem. What is the economic problem? The issue that every economy appears to have is this desire to have an unlimited supply of goods and services however it is almost impossible to accomplish that.

Firstly, Australia operates under a mixed market economy. A mixed market economy is an economic system in which production and prices are determined by unrestricted competition between privately owned businesses. In a market economy, there are markets for all the goods and services produced, as well as for resources that produce them. The sellers are the businesses and their output decision makes up the supply of products. A market economy has many different characteristics. They include the following: price mechanism, private ownership of the property, consumer sovereignty, freedom of enterprise and competition. The market or the price mechanism brings the supply and the demand together to determine the price for each good and service. If there is a big demand on a product, the price usually increases so the business can make profit. Private property is a legal designation for the ownership of property by non-governmental legal entities. Individuals have the right to own the means of production and can use these to derive income and acquire wealth. This is known as private ownership of property. Freedom of enterprise refers to an economy where individuals have the right to use their resources as they want. This means that entrepreneurs are free to set up profit making activities and have the right to determine what goods and services they produce and how they will undertake that production. Consumers determine the answer to the question of what to produce and how much should be produced.