Australia's mixed market economy is influence by the Aus govt to ensure that the most desirable economic and social outcomes are achieved. Without any intervention, the laissez faire system is susceptible to severe market failure which causes unsustainable growth and overall instability. Negative features of a free market economy would include poor provision of G + S, inequality in income distribution, negative externalities, abuses of market powers and extreme fluctuations of the business cycle. Therefore, The Aus govt has employed different roles and techniques to reduce Australian market failure and certify an acceptable standard of living.

Firstly, market failure may occur in the provision of G + S that are economically and socially unfavourable. Therefore, the govt intervenes with the reallocation of resources through govt's provision of G + S, and through taxation and spending measure. Public goods such as...