Which system would own land, capital, labor and make all economic decisions?

Which system would own land, capital, labor and make all economic decisions?

• A. Capitalism
• B. Monarchy
• C. Communism
• D. Anarchy

Answer: (C)

The concept being tested is a centralized, state-directed economy. When the government owns land, capital, and labor and makes all economic decisions, the system aims to control what gets produced, how it’s produced, and who receives the goods. This setup is most closely associated with communism, where private ownership of the means of production is minimized or eliminated and the state plans and directs economic activity. This differs from capitalism, where individuals or firms own land and capital and markets guide production and distribution through supply, demand, and profit motives. A monarchy is a form of government that can exist with various economic systems, but it doesn’t by itself define who owns resources or who makes economic decisions. Anarchy means there is no centralized government at all, so there isn’t a single authority making broad economic decisions or owning resources.

The concept being tested is a centralized, state-directed economy. When the government owns land, capital, and labor and makes all economic decisions, the system aims to control what gets produced, how it’s produced, and who receives the goods. This setup is most closely associated with communism, where private ownership of the means of production is minimized or eliminated and the state plans and directs economic activity.

This differs from capitalism, where individuals or firms own land and capital and markets guide production and distribution through supply, demand, and profit motives. A monarchy is a form of government that can exist with various economic systems, but it doesn’t by itself define who owns resources or who makes economic decisions. Anarchy means there is no centralized government at all, so there isn’t a single authority making broad economic decisions or owning resources.