Different nations use different economic system approaches to help in the development of the nation's wealth as well as to solve the nation's economic problems. It is a complex mechanism whose tasks are to ensure the production and distribution of products for the survival of society. For the purposes of this assignment, emphasis will be placed on the analysis of the four main types of economic systems. Furthermore, it will focus on describing South Africa as a mixed economy by describing the local system and explaining why South Africa is classified as a mixed economy and also as to whether the mixed economic system used in South Africa is the appropriate system for our current economic situation. Economic systems are an approach to how different nations use their resources and manage and control their factors of production in such a way that wealth can be distributed equally among the population of that nation and the needs of society are met. There are four main economic approaches used by different countries: The free market economic system, the command economic system, the socialism economic system, and the mixed economic system. MARKET ECONOMY SYSTEM The first economic system is the market economic system also recognized as free market economy or free enterprise and also capitalism. In this system, the government has no control over resources and how the factors of production are distributed between...... middle of paper ...... economic system, individuals are able to explore with the resources and there is competition in the market and the market is driven by market force and it also adds to the GDP while there are those who are not privileged, the government steps in to help and improve the lives of these individuals, by implementing their policies and in doing so it builds our GDP, because the government provides the necessary needs for these individuals to help balance the distribution of wealth, however South Africa does not failed to find the appropriate balance for the key, however when comparing real GDP from 1990 to 2006 it increased by 5.3% and inflation decreased by 9.6%. The change in net reserves increased by 26,240 which is positive, although South Africa struggles with unemployment it just needs to find the balance between private ownership and government intervention..