Economic system – Capitalism

Economics SSS1 First Term


Economic system – Capitalism

Performance Objectives

Student should be able to:

  1. Describe different economic system and how they solve their economic problems.
  2. Distinguish among the systems.


Meaning of economic system

An economic system is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area.  It also means an organized way by which the means of production in a country are utilized to satisfy human wants. All economic systems have three basic questions to ask: what to produce, how to produce and in what quantities and who receives the output of production.

The major types of economic systems of the world are divided into three major groups: capitalism or free-market economy, socialism and the mixed economy.


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