1. How would you describe a market economy?

2. What distinguishes a market economy from a command economy?

3. Is there a role for government intervention in the Australian economy?

4. Briefly consider the economies of France, North Korea, South Korea, Brunei, Switzerland, Cuba, Poland, Denmark and Mongolia. What type of economic system would you classify them as?

5. In what circumstances would a market economy be considered ineffective?

6. Research question: See what you can find on the Internet about the economic performance of an emerging market economy such as China, Vietnam, Hungary or the Czech Republic.

7. according to research by the IMF and various economists, which of the following measures is not a required feature of the process of transition from a command economy to a market-based one?

(a) liberalisation of most prices

(b) immediate lowering of inflation

(c) restructuring of the financial sector

(d) reform of the legal system (e.g. contract laws, property rights).

8. List the areas of government involvement in the Australian economy.

9.  What  have  been  the  advantages  to  consumers  of  selling  previously  government-owned enterprises in Australia?

10. are there areas where you think there should be more, or less, government intervention? Why?