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. As long as the economic problem exists people will strive to create the ultimate 'perfect' economic system, causing us to consider upon the thought of whether that is really ever possible.
The North Korean economy can only be described as a centrally planned, isolated, socialised and heavily government effected economy. What to produce is determined purely by the communist government regime and what it deems to be most productive for the nation. Consumer Sovereignty is not a plausible aspect of the economy due to restrictiveness of the current communist system and the ideal that come with it. North Korean citizens have a very limited economic freedom in retrospect to free trade which is...