IntroductionThis assignment conducts an analysis of the four main types of economic systems:1. The command economy2. The traditional economy3. The market economy4. The mixed economy All countries or societies have their own economic system. This allows them to provide for the needs and wants of the economy. According to ti Blecher (2010:17), an economic system is the method that every society uses to answer the four fundamental economic questions: what to produce, how to produce, for whom to produce and where to produce. We will critically discuss each economic system and also analyze its advantages and disadvantages. Overview of the Command Economy Fourie and Mohr conclude that in the command economy system participants are instructed on what to produce and how to produce it by a central system authority. They also determine how production is distributed, because the economy is governed and coordinated by the central authority. (Fourie and Mohr 2008: 27) Here economic decisions are made by the government where people have limited influence on how fundamental economic questions are answered. Examples There are some command economies in the world right now. North Korea and Cuba are both examples of this. The Soviet Union is a government that made major economic decisions and directed the State Planning Commission in almost every aspect of the Soviet economyAdvantages and DisadvantagesAdvantagesDisadvantages• Can change direction dramatically in a short time• Emphasizes heavy industry and industrial growth rather than the production of consumer goods • Healthcare and public services available at low cost • It's not meant for me...... half of paper ...... before calling it a mixed economy. Here resources can be owned by individuals or even the state according to Blech. The democratic society in which the government is elected to pursue the interests of the people so that all can benefitExamplesSouth Africa is an example of a mixed economic system. The United States is also one of the best examples of combining the three economic systems.Advantages and DisadvantagesAdvantages Disadvantages• Government provides essential services• Private sector is encouraged for profits• Competition allows prices to remain low • There is choice for consumers • Inefficient business behavior is controlled • Heavy taxes reduce incentives to work • Less efficient than private sector • Excessive control over business activities can increase costs and discourage businessConclusion