INTRODUCTION An economic system is the way a country allocates its resources. It's about how production is done, how to allocate the resources that have been produced. An economic system aims to solve the four economic systems which are command, market, traditional and mixed system. Countries nowadays usually use the mixed economic system and market system. Each of the systems will be discussed and analyzed. • Command economic system In this economic system all resources are controlled and managed by the government and as the government produces goods and services for everyone in a country. All decisions in an economic system are made by the government about what to produce, where and how to produce. Sometimes this economic system does not work for people because since the government has control over every resource, it can dictate law over people. Advantages: is that unemployment is very low, most of the people in the country have jobs. The prices of goods and services are low so that everyone can afford goods and services and the inflation rate is also low. Disadvantages: People/companies cannot choose what they want to produce, the government says what and how to produce. Lack of profit motivation leads businesses to perform poorly and not produce good quality prices. • Market system The supply and demand of products determine the price at which goods and services will be sold. Decisions regarding the prices of goods and services in this economic system are made by individuals. There is no government intervention as in a similar command system, the government can only intervene to the extent necessary to stabilize prices if they are too high. According to Adam Smith (1776:25) as quoted in (S...... half of the document ......-Hill book• Miles, R.1987.Capitlism and unfree of labour.1st ed.new York : Tavistock.• Torado, PM2000.economics development.7th edition.london: Pearson education limited.• Marshall, Alfred, Principle of Economics.1920.library of economics and liberty.retrieved on 7 May 2014 from the World Wide Web from http:// www.econlib.org/libary/marshall/marp.html.• South Africa-Africa Economic Outlook(.2014) Retrieved from http://www.afriaeconomicoutlook.org/countries/southern Africa/south -Africa• Dostoc(2013). )Traditional system retrieved from http://www.docstoc.com/docs/1349723861a/traditional-economy-is-a-system-where-traditions-and-beliefs• Answer bag (2013-2014)economic system of South Africa retrieved from http://www.answerbag.com/q_view/2440766• Mixed Economy(2014) retrieved from http://www.engineeringnews.co.za/artilces/government-suppos-mixed-economy-says-zuma-2009-08-14