The question required the candidates to define capitalism and to explain any four features of capitalism.
This was a popular question among the candidates. The definitions given for capitalism were explicit but their explanations of the four features were not elaborate enough to merit the three marks for discussion.
Capitalism is an economic system in which the ownership and central of resources such as land and capital are in the hands of individuals
The main features of capitalism include:
(1) Private ownership and control of property or means of production
(2) Profit motive guided by self interest is dominant
(3) Competition among the economic agents permeates the system. This enhances efficiency.
(4) Reliance upon the price system in the allocation of resources
(5) Limited role for government
(6) Decision making is by individuals
