MIXED SYSTEM – OER Repository

1. The South African economy can best be described as which type of economy?

a traditional economy

Think again.

The South African economy does have elements of a traditional system, but it is not the predominant (principal/leading) system. The predominant economic system in South Africa is mixed because the country has elements of a market system, a command system and a traditional system.

a command economy

Think again. The South African economy does have elements of a command system, but it is not the predominant (principal/leading) system. The predominant economic system in South Africa is mixed because the country has elements of a market system, a command system and a traditional system.

a pure market economy

Think again.

While the market plays a dominant role in the South African economy, it is not purely a market system. The predominant economic system in South Africa is mixed because the country has elements of a market system, a command system and a traditional system.

a mixed economy

Correct!

The predominant economic system in South Africa is mixed because the country has elements of a market system, a command system and a traditional system.

2. The South African economy can best be described as which type of economy?

true

Think again. The statement is false.

A mixed economy combines elements of a market economy and a command economy. The economic problem is therefore answered partly by the free market and partly by a central authority.

false

You are right! The statement is false.

A mixed economy combines elements of a market economy and a command economy. The economic problem is therefore answered partly by the free market and partly by a central authority.

3. The economic problem is solved through the combination of efforts by the public and private sectors.

true

You are right! The statement is true.

Some goods and services are produced privately where the price is determined by the market system, and some goods and services, such as healthcare and national defence, are provided by government (i.e. the public sector).

false

Think again. The statement is true.

4. Which one of the following types of economic system is typically characterised by full public ownership of property?

command

You are right!

Typically, under a pure command system, the government or some central authority owns all the property in that economy. We thus refer to “full public ownership” of property with no scope for private ownership.

market

Think again.

Typically, a pure market economy is characterised by “full private ownership” of property. Full private ownership leaves no scope for public ownership, and as a result, a pure market economy does not have a government or central authority.

mixed

Think again.

A mixed economy has elements of a command and a market economy with varying emphasis placed on each, depending on the particular economy. A mixed economy is therefore characterised by public and private ownership of property.

Glossary

1. The South African economy can best be described as which type of economy?

2. The South African economy can best be described as which type of economy?

3. The economic problem is solved through the combination of efforts by the public and private sectors.

4. Which one of the following types of economic system is typically characterised by full public ownership of property?