1. IntroductionA systematized approach in which a government or nation distributes its resources and apportions goods and services across the national community. The economic system can consist of the different ways in which the workforce is organized and how it is rewarded or motivated. It would also include the entire process of production and allocation of goods. In these systems there are elementary concepts that a person should think about and consider which include political circumstance, tradition and even the production environment of these goods or services.2. Economic systems. Traditional EconomyA traditional economy is a system in which customs, tradition, heritage, and belief systems dictate how to answer the three economic questions. Only a limited amount of specialization and little trade occurs in this system. People tend to live in family groups, and these families produce most of their own food, build their own homes, collect their own fuel (coal, firewood, etc.), and contribute to their own recreational activities. Examples of Traditional Economies • Australian Aborigines • The Mbuti of Central Africa • The Inuit of Northern Canada Advantages • There is little or no hesitation/uncertainty. • Everyone knows what role they play in society. • Life is general, constant, predictable and constant.Disadvantages• Innovation is discouraged.• Lower standards of living.• Need for development.b. Market EconomyThe forces of supply and demand, without any interference from the government, determine how resources are allocated; production, consumption, price levels and competition are made up of collective actions of individuals or organizations seeking their own advantage. In the market system the coordination method...... middle of paper ...... of the mixed economy is a system suited to our current economic conditions. South Africa's economic growth improved enormously with the transition to a democracy and has been reasonably stable throughout the democratic era, averaging growth of 3.2% per year from 1994 to 2012. This has resulted in the transformation of the economy from a GDP of $136 billion in 1994 to $384 billion in 2012. a report by (The Economic Society of South African) on a 20-year period of the country's economy since the onset of democracy, from page 86 of 193 pages of documents, based on data provided by the World Bank Development Indicators published in February 2014. It is clear that South Africa as an economy has improved over the years under the mixed economic system, judging by the GDP and development data produced by the countries have suffered..