This was also a popular question. In the (a) part of this question, most candidates were able to define economic system but, few of them were able to recognize the difference between the economic systems listed above in terms of the specific features in the (b) part of the question. The performance of candidates in this question was average.
           
    Candidates were expected to answer thus:

(a)  (i) An economic system is the social, legal and institutional framework for the management of resources in an economy.
OR
An economic system is any arrangement adopted by a country to manage the scare resources of the country effectively.             

(b)  (i) Aim of production
In capitalism, the aim of production is to make profit so goods and services are being produced on a large scale.
In socialism, the aim of production is to provide for the welfare of the citizens by making goods and services available at low/affordable prices.         
(ii) Consumer sovereignty
In capitalism, the consumer is king as it is he who dictates what is to be produced through his purchases. The consumer’s taste drives production.      
In socialism, consumers’ demands are determined by government so they have little or no influence on what is produced.
(iii) Competition
Since profit is the motive in capitalism, competition exists and it ensures efficiency and this leads to production of high quality goods that attract customers.
In socialism, there is no competition since government decides what is to be produced. Government is the sole producer and this can lead to production of low quality goods.

(c)  (i) Land is a natural gift and has a zero cost of production.
(ii) The supply/size of land is fixed and cannot be increased or decreased.
(iii) The quality of land can be degraded if not used with care.
(iv) Land has many uses which are both short-term (farming, fishing) and long-term (roads, dams, factories)
(v) The value of land depends upon its location. Land in urban centres cost higher than land in rural areas.
(vi) Land is subject to diminishing returns if the right number of a variable factor is not applied to it.
(vii) Land is geographically immobile.
(viii)     Land is heterogeneous. Its quality varies, some may be more suitable for residential purposes than for other purposes.
(ix)       The reward for land is rent.