Which system of government allows for and guarantees maximum competition?

Step 1: Analyze the question The question asks which system allows and guarantees maximum competition. Strictly speaking, capitalism is an economic system rather than a system of government, but in WASSCE Government questions it is often grouped with political and economic ideologies.

Step 2: Explain the concepts

• Feudalism: Land is owned by lords, and peasants (vassals) work it in exchange for protection. Social and economic positions are fixed by birth, so there is very little competition.
• Capitalism: Private individuals and firms own the means of production. Prices are set by market forces (supply and demand), and the profit motive drives people to compete. Competition is its defining feature.
• Communism: The state or community owns the means of production, with central planning. Private competition is largely eliminated.
• Social Democracy: This is a mixed approach. Markets exist, but the state intervenes heavily through welfare and regulation, so competition is limited and not maximized.

Step 3: Eliminate the options

• A is out because feudalism is rigid and hereditary.
• C is out because communism abolishes private ownership and market competition.
• D is out because social democracy deliberately moderates competition through state intervention.
• B is left, and it matches the description of free enterprise and open competition.

Step 4: Answer Capitalism guarantees the greatest freedom for individuals and businesses to compete, so the answer is B.

Exam tip: Link keywords to systems:

• "Competition / private ownership / profit" → Capitalism
• "State ownership / classless" → Communism
• "Welfare plus market" → Social Democracy
• "Land / lords / vassals" → Feudalism