1. 1 A MIXED ECONOMY Pg 98 1. S.A. HAS A MARKET ORIENTED MIXED ECONOMY. 1. S.A. HAS A MARKET ORIENTED MIXED ECONOMY. 2. Most economies are a mixed economy i.e. government [command] and market mechanism play a major part. Tradition plays a secondary [small] role. 2. Most economies are a mixed economy i.e. government [command] and market mechanism play a major part. Tradition plays a secondary [small] role. 3.N.B. Another name for the largely command system is Communism. 3.N.B. Another name for the largely command system is Communism. The S.African system- largely market oriented is called Capitalistic system. The S.African system- largely market oriented is called Capitalistic system.

2. 2 GOVERNMENT INTERVENTION Nationalization is where the government owns most of the assets.{Public sector} Nationalization is where the government owns most of the assets.{Public sector} Privatization is where the people own most of the assets.{ Private sector} Privatization is where the people own most of the assets.{ Private sector} Some services cannot be provided by private people e.g. defence, Law and order; education for the majority of the people. Some services cannot be provided by private people e.g. defence, Law and order; education for the majority of the people.

3. 3 Government intervention “what the government gives it must first take away.” Coleman “what the government gives it must first take away.” Coleman To provide goods e.g. houses and services the govt. collects tax. [ V.A.T; P.A.Y.E; SITE tax; Customs and excise duty etc] There is a big debate about how much government intervention is correct.

4. 4 PLACE OF GOVERNMENT IN A MIXED ECONOMY MARKET FOR FACTORS OF PRODUCTION GOVT SERVVICES HOUSEHOLDS GOVT SERVICES TAX GOVERN MENT GOVT SERVICES TAXBUSINESS MARKET FOR GOODS AND SERVICES

5. 5 THE FINANCIAL SECTOR This refers to the banks This refers to the banks Commercial banks e.g.Standard, FNB, Nedbank, Ithala etc. Commercial banks e.g.Standard, FNB, Nedbank, Ithala etc. The S.A. Reserve Bank- regulates money supply- lends money to the commercial bank at the repo rate. The S.A. Reserve Bank- regulates money supply- lends money to the commercial bank at the repo rate. Commercial banks then lend the same money to you and entrepreneurs at a higher rate. Commercial banks then lend the same money to you and entrepreneurs at a higher rate.