WAEC Government 2014 Theory — Question 3

Model answer

Advantages: i. Under capitalism, competition among manufacturers of the same goods results in the best products for consumers. ii. Capitalism gives the individual economic freedom to set up any business venture he or she desires. Disadvantages: i. Capitalism can be regarded as an exploitative economic system, since the bourgeoisie makes their profit after exploiting labourers, who are paid less so that more profits can be made. ii. Capitalism creates the problem of inequality in society, widening the gap between the rich and the poor.