What are the functions of an economic system? How are these functions performed in the Australian economy?

Each society is faced with a problem concerning their economic state. The economic problem is that there are finite resources in relation to unlimited wants. This problem brings about the need for a system to answer questions (what, how, how much, who) that will solve it in the most effective way. An economic system is the organisational and institutional pattern through which choices are made about which wants to satisfy, and how to allocate resources …

…cash subsidies, charge taxes, borrow money and run its own businesses. The economic problem will always create the need for an economic system. Australia's mixed system is quite a good balance of economies however problems still arise and the efficiency and reliability 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.