In which economic system does the government own major industries and plan the economy?

In which economic system does the government own major industries and plan the economy?

• A. Capitalism
• B. Socialism
• C. Feudalism
• D. Communism

Answer: (B)

Socialism is defined by government ownership of major industries and central planning of the economy. When the state controls the key sectors and makes the big decisions about production and distribution, it aims to direct economic activity toward broader social goals rather than individual profit. Capitalism relies on private property and market forces; feudalism centers on a land-based hierarchy with lord-serf obligations rather than modern economic planning; communism envisions a classless, stateless society with communal ownership, whereas socialism typically involves a strong role for the state in guiding the economy.

Socialism is defined by government ownership of major industries and central planning of the economy. When the state controls the key sectors and makes the big decisions about production and distribution, it aims to direct economic activity toward broader social goals rather than individual profit. Capitalism relies on private property and market forces; feudalism centers on a land-based hierarchy with lord-serf obligations rather than modern economic planning; communism envisions a classless, stateless society with communal ownership, whereas socialism typically involves a strong role for the state in guiding the economy.