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SubjectPaid lesson

Meaning of Capitalism and Socialism

ClassNotes Team 3 MIN READUPDATED 15 JUN 2026

Government S.S.S.1 First Term

WEEK 5

Meaning of Capitalism and Socialism

Performance Objectives

 Student should be able to:

1. Explain the meaning of Capitalism and Socialism.

2. State the difference between Capitalism and Socialism.

Capitalism

The term Capitalism is the economic system in which the means of production, exchange and distribution of goods and services lies in the hands of private persons, where government's participation is very low.

Characteristics of Capitalism

The following are the characteristics of Capitalism:

1. Means of production lies in the hands of private individuals.

2. Many producers are involved.

3. Individual source for capital to produce. 

4. Choices of commodities are made by the people.

5. It is highly specialised system coupled with a…