INTRODUCTIONAn economic system is the way a country allocates its resources. It is about how production is carried out, how to allocate the resources that have been produced. An economic system aims to resolve the four economic systems which are the command system, the market system, the traditional system and the mixed system. Nowadays, countries generally use a mixed economic system and a market system. Each of the systems will be discussed and analyzed. • Managed Economic System In this economic system, all resources are controlled and managed by the government and in that 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 controls every resource, it can dictate to people. Advantages: Unemployment is very low, most people in the country are employed. The prices of goods and services are low, so everyone can afford the goods and services and the inflation rate is also low.  Disadvantages: people/businesses cannot choose what they want to produce, the government says what and how to produce. Lack of profit motivation leads companies to perform poorly and not produce good quality prices. • Market system Supply and demand for products determine the price at which goods and services will be sold. Decisions regarding the pricing of goods and services in this economic system are made by individuals. There is no government intervention, because in a similar ordering system the government can only intervene to the extent that it needs to stabilize prices if they are too high. According to Adam Smith (1776: 25) cited in (S...... middle of article ......-Hill book• Miles, R.1987.Capitlism and unfree of labor.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 Liberity Retrieved May 7, 2014 from the World Wide Web from. http:// www.econlib.org/libary/marshall/marp.html. • South Africa Economic Outlook (.2014). Retrieved from http://www.afrianomicoutlook.org/countries/southern Africa/south -. Africa• Dostoc (2013) Traditional system taken from http://www.docstoc.com/docs/1349723861a/traditional-economy-is-a-system-where-traditions-and-beliefs• Bag of answers (2013-2014) Economic system 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