The different emphasis placed by different societies on different goals and priorities to answer the three key economic questions has led to the development of four different economic systems which I will critically analyze in this assignment . Furthermore, I will critically discuss South Africa as a mixed economy, why it is characterized as a mixed economy, and the suitability of the economic system for current economic conditions. “It is not necessary for a government to guarantee the well-being of the entire society ” Adman Smith.2.LITERARY REVIEW OF THE FOUR ECONOMIC SYSTEMS2.1. Traditional Economic System: Traditional economy is a system in which the goods and products created by society are shaped by customs, beliefs and tradition. It is not very dynamic and not many changes occur. Individuals' living standards are static, they do not enjoy much financial or occupational mobility, on the contrary Dr Butler, G(2013:158) stated: “An advantage of a traditional economy is that each person has a function in society ”.2.2. Planned Economic System: A planned economy is an economic system controlled by the state, so the utilization and distribution of available resources are incorporated into a formulated by a central authority. Government officials play a role in regulating prices, wages, and even determining who should be hired. Planned economy refers to a centrally planned economy despite being based on centralized or decentralized forms of economic planning. Dr Butler, G(2013:159) outlines the aim of central planning which he explained as a means of improving productivity and coordination by enabling planners to benefit… half of paper… UK: Cambridge University Press . • Schott, K. 1984. Politics, power and order: the persistence of economic problems in capitalist states. New Haven and London: Yale University Press.• Butlar, G. 2013. Introduction to academic literacy for business students. Vaal; North West University. (AGLE Study Guide 111).• O'Dowd, M. C. 1996. The O'Dowd Thesis and the Triumph of Democratic Capitalism. South Africa: the foundation of the free market.• Novak, M. 1983. The spirit of democratic capitalism. New York: Simon & Schuster.• Harris, L. 1990/91. The mixed economy of a democratic South Africa. Journal of Investment Analysts. 33-41• Dr Kleynhans, EPJ 2013. Economics. Potchefstroom: University of the North West. (ECON 111 VEC Study Guide)• Dr van der Merwe, WJJ 2014. Introduction to Business Management. Potchestroom: University of the North West. (BMAN Study Guide 111