Observation

This was the most popular and a straight forward question. The candidates who attempted it performed very well and scored high marks. However, some candidates deprived themselves good marks by writing skimpy answers in part (b). Candidates were expected to provide the following answers to the question.

1. Private ownership and control of the means of production, distribution and exchange. 
2. Profit maximization is the driving force behind capitalism.
3. There is competition among producers and sellers of commodities.
4. Freedom of enterprise and occupation.
5. Consumer sovereignty/consumer preference is guaranteed.
6. There is class conflict between the proletariat and the bourgeoisie.
7. Free market economy.
8. Minimal government interference and regulation.
9. The adoption of liberal democratic principles.
10. It leads to monopolistic tendencies.

1. Inequality in the distribution of wealth and income
2. Social costs are very high because there is job insecurity.
3. Capitalist economy is usually unstable.
4. It heightens unemployment and underemployment.
5. It leads to slow and unbalanced growth between the rural and urban areas.
6. The working class does not have adequate social security
7. There is growth of monopolies with their attendant evils.
8. Exploitation of labour by the capitalist.
9. Class struggle is inevitable in a capitalist economy.
10. Unhealthy competition in a capitalist economy.
11. It heightens industrial actions such as strikes
12. Profit maximization leads to exploitation of consumers.