Economic Factors That Influence Our Quality Of Life

1379 WordsAug 11, 20146 Pages
Economic factors that influence our quality of life in Australia An economy refers to the way in which a society is systematized to solve the economic problem of the insufficiency of resources relative to the society 's needs and wants involving the countries production, distribution and exchange. There are many factors or the economy that influence the standard of living in Australia. The Main Factors are Australias Economic System, The key resources of the Australian economy, and the key economic indicators including confidence, unemployment, exchange rates, economic growth and inflation. Fix this and expand properly Economies are categorized into different systems. The two broad types of economic system are the Market economy and the planned economy. Australia is a Market Economy. Economic Systems Market Economies Market economies work on the belief that supply and demand, are the best determining factors of what is right for the nation 's welfare. Market economies allow market influence to drive most of their activities and decisions. They only really become involved in government interventions (for example; price fixing and subsidizations) to the extent that is needed to provide and ensure stability. The market economy is the preferred system of choice in today 's marketplace however, it is debatable whether market economy allows for the correct amount of government intervention that is considered ideal for efficient economic function. Market economy producers
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