Which economic system is characterized by government ownership of most resources and a planned economy?

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

Answer: (A)

This question is about how ownership of resources and economic planning shape an economic system. In a communist system, the government owns most resources and directs economic activity through central planning, deciding what to produce, how to allocate goods, and how to distribute them. The idea is to run the economy according to a collective plan rather than by individual choices in markets, aiming for a classless structure and public ownership of the means of production.

Capitalism relies on private ownership of resources and market-driven decisions, with supply, demand, and prices guiding production. Social Democracy mixes a market economy with substantial government programs and regulation, but private ownership still dominates. Feudalism is a historical system centered on land owned by lords with servile obligations from peasants, not a centrally planned economy.

Thus, the description fits communism.