Which economic system is based upon public & governmental control of the production & distribution of nearly all national resources?

Which economic system is based upon public & governmental control of the production & distribution of nearly all national resources?

• A. Capitalism
• B. Communism
• C. Social Democracy
• D. Feudalism

Answer: (B)

This describes communism. In this system, the government or the community as a whole owns the major means of production and plans what gets produced, how it’s produced, and how goods are distributed. Private ownership of productive resources is minimized or eliminated, and distribution follows centralized plans rather than market prices. This stands in contrast to capitalism, which centers on private property and market-driven decisions; social democracy mixes private enterprise with government programs but doesn’t place nearly all resources under state control; and feudalism is a historical system based on land ownership and hierarchical privilege, not government-directed control of modern productive resources.

This describes communism. In this system, the government or the community as a whole owns the major means of production and plans what gets produced, how it’s produced, and how goods are distributed. Private ownership of productive resources is minimized or eliminated, and distribution follows centralized plans rather than market prices. This stands in contrast to capitalism, which centers on private property and market-driven decisions; social democracy mixes private enterprise with government programs but doesn’t place nearly all resources under state control; and feudalism is a historical system based on land ownership and hierarchical privilege, not government-directed control of modern productive resources.