The Modified Market Economy :: essays research papers

The Modified Market EconomyWhat is a limited grocery store thriftiness? What factors have been responsible for theemergence of this kind of economic schema? How do governments influenceeconomic decision making in such(prenominal)(prenominal) systems? Use Australian examples to illustrateyour answer.A circumscribed commercialize thriftiness is a market economic system in which at that place be variable amountsof intervention and property ownership by the government. The Australian economywould be classed as a modified market, as we have a reliable degree ofgovernment intervention, and this is something we should feel lucky for in ourcountry, because due to this we be able to experience the free, fairlifestyle which we enjoy.The emergence of this kind of economy is mainly due to weaknesses in the marketeconomy which, with out regulation, becomes an economy mainly concentrated onthe wealthy people. The basic reason for the modified market economy is thatthe free market does n ot produce an economical allocation of resources, and thatthe free market does not distri simplye output in a socially desirable way. Forexample in a modified market, the government regulate the flow a income a bit sothat not only the rich make money. In a market economy the rich get richer andthe poor get poorer as there is no regulation in terms of income distribution.The intervention by the government, in forms such as social security nets,which is present in a modified market, makes hunting lodge more evenly spread ratherthan everyone world one of two things, that is, very rich, or very poor.In such economies as these, the government influence economic decision making practically to our advantage in terms of them providing many of the resources needed tosatisfy embodied wants, making restrictions upon what can and can not be done,in the interests of our health, the environment, impacts upon society etc.Through this they regulate much of the possible bad economic decisions tha tcould be made.The Australian government does place some limitations on freedom of enterprise,but generally encourages private business activity as it is an advantage to our full economic growth in terms of employment etc.The Australian government also encourages the idea of fair competition. Tokeep the consumer choice little restrictive the government might not allow certain head overs that may limit the number of choices available to the consumer.Competitive prices that come from businesses are also good for the economy ingeneral, for example if an Australian own company, such as Uncle Tobys,