Majority of the candidates who attempted this question scored average marks.  Most of the candidates only provided appropriate answers for the (b) part of the question but could not adequately, distinguish between economic activities and economic system as required in the (a) part of the question.

These candidates were expected to state thus to score maximum marks in this question.

(a)        Economic activities are what people do to earn a living.  For example,
                        people are engaged in farming and trading.
                        Economic system on the other hand refers to the mode of production and the
                        distribution of goods and services within which economic activities take place.

These candidates were expected to state the following answers for the (b) part to score good marks.
(b)        Features of a monopoly are as follows:

1. there is only one seller of a product;
2. entry is restricted.  Barriers to entry are so severe that new firms find it

difficult to enter the market;

1. it has the power to control price or output but not both;
2. there is an imperfect knowledge or information about market conditions;
3. there is no perfect substitute for the products sold by the monopolist.