Economic Systems


Welcome to the course on Economic Systems. This course delves into the fundamental structures that underpin the ways in which societies organize their economic activities. In this comprehensive study, we will explore the various types of economic systems, including free enterprise, centrally planned, and mixed economies.

At the heart of our study are **basic concepts** that form the foundation of economic systems. These concepts help us understand how resources are allocated, goods and services are produced, and income is distributed within an economy. By grasping these concepts, students will be equipped to analyze and evaluate economic systems in different socio-economic contexts.

One of the core objectives of this course is to enable students to **compare the various economic systems**. By examining the features of free enterprise, centrally planned, and mixed economies, students will gain insights into the strengths and weaknesses of each system. Through this comparative analysis, students will develop a nuanced understanding of how economic systems impact resource allocation, production efficiency, and wealth distribution.

Understanding **economic problems** is another focal point of this course. Students will explore the challenges that arise within different economic systems, such as scarcity of resources, unemployment, inflation, and income inequality. By dissecting these economic problems, students will be able to identify the root causes and explore potential solutions within the frameworks of free enterprise, centrally planned, and mixed economies.

Moreover, this course will delve into **solutions to economic problems under different systems**. Students will be challenged to think critically about how policy interventions, market mechanisms, and government regulations can address economic challenges effectively. By examining case studies and real-world examples, students will develop problem-solving skills that are crucial for proposing viable solutions within diverse economic systems.

A significant aspect of this course is the exploration of **contemporary issues in economic systems**. From economic reforms to deregulation, students will analyze current trends and challenges shaping modern economies. By connecting theoretical concepts with real-world phenomena, students will gain practical insights into how economic systems evolve and adapt to changing circumstances in the global economic landscape.

Overall, this course equips students with the analytical tools and knowledge to not only understand the intricacies of economic systems but also to apply this knowledge to **contemporary issues in Nigeria**. By fostering critical thinking and problem-solving skills, this course empowers students to navigate the complexities of economic systems with confidence and proficiency.


  1. Apply The Knowledge Of Economic Systems To Contemporary Issues In Nigeria
  2. Compare The Various Economic Systems
  3. Proffer Solutions To Economic Problems In Different Economic Systems

Lesson Note

Economic systems are the various ways societies organize economic activities and allocate resources. They determine how goods and services are produced, distributed, and consumed. Understanding economic systems is crucial in addressing contemporary issues and solving economic problems effectively.

Lesson Evaluation

Congratulations on completing the lesson on Economic Systems. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.

You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.

Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.

  1. Types of economic systems include: A. Capitalism B. Socialism C. Communism D. Fascism Answer: A. Capitalism
  2. In a free enterprise economic system: A. The government controls all economic activities B. Individual property rights are not respected C. Market forces determine prices and production D. All resources are owned collectively by society Answer: C. Market forces determine prices and production
  3. In a centrally planned economic system: A. Prices are determined by supply and demand B. The government makes all decisions about production and distribution C. Individuals have complete freedom to own property D. Profit motive guides resource allocation Answer: B. The government makes all decisions about production and distribution
  4. A mixed economic system combines elements of: A. Free enterprise and socialism B. Communism and capitalism C. Fascism and socialism D. Central planning and capitalism Answer: A. Free enterprise and socialism
  5. One of the basic economic problems is: A. Satisfying unlimited wants with limited resources B. Adequate government intervention in the economy C. Lack of economic freedom for individuals D. Equal distribution of wealth among all citizens Answer: A. Satisfying unlimited wants with limited resources
  6. Contemporary issues in economic systems may include: A. Deregulation of industries B. Increase in government control over businesses C. Implementation of price controls D. Nationalization of private enterprises Answer: A. Deregulation of industries
  7. Which economic system allows for private ownership of property and businesses? A. Centrally planned economy B. Free enterprise economy C. Mixed economy D. Socialist economy Answer: B. Free enterprise economy
  8. Economic reforms are often implemented to: A. Increase government control over the economy B. Promote competition and efficiency C. Decrease consumer choices in the market D. Stifle technological innovation Answer: B. Promote competition and efficiency
  9. Solutions to economic problems under different economic systems may vary based on: A. Government intervention levels B. Consumer preferences C. Economic stability D. Political ideology Answer: A. Government intervention levels
  10. An example of a centrally planned economy is: A. United States B. North Korea C. Germany D. Canada Answer: B. North Korea

Recommended Books

Past Questions

Wondering what past questions for this topic looks like? Here are a number of questions about Economic Systems from previous years

Question 1 Report

(a) Explain the following types of taxes:
     i. specific tax
     ii. value-added tax
(bi) With the aid of diagrams, describe the effects of an indirect tax on a commodity when demand is:
      perfectly inelastic
(ii) With the aid of diagrams, describe the effects of an indirect tax on a commodity when demand is:
      perfectly elastic

Question 1 Report

In the diagrams, the opportunity cost of a unit of cotton in terms of cocoa is

Practice a number of Economic Systems past questions