Question: Define what is meant by an economic system. Explain how Australia's economic system attempts to solve the economic problem.

Each society is faced with a problem concerning their economic state. The economic problem is that there are limited resources in relation to unlimited wants. This problem brings about the need for a system to answer questions like what to produce, how to produce, how much to produce and how to distribute production. An economic system is the organisational and institutional pattern through which choices are made about which wants to satisfy, and how to …

…problems still arise and the efficiency and reliability of this system is questioned. As long as the economic problem exists people will strive to create the ultimate "perfect" economic system, causing us to ponder upon the thought of whether that is really ever possible. by Anna 11E1 Bibliography: Dixon, T. (2005) The market economy: preliminary course 2005 Sydney: Leading Edge Education. Riley, T. Year 11 economics http://intrepix.tripod.com/en/notes/economics.html Notes from Enoch Lau