An economic system in which the government owns the means of production is called ______.

Socialism

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Capitalism

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Liberalisation

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Democracy

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Solution

The correct option is A Socialism

Socialism is a populist economic and political system in which the means of production operate under public political ownership, sometimes called common ownership. All legal production and distribution decisions are made by the ruling class.

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Similar questions

Q25. Which of the following statements are correct?

1. A mixed economy refers to market economy with strong regulatory oversight and governmental provision of public goods.

2. A socialist economic system is characterized by social ownership and democratic control of the means of production.

3. Capitalism is an economic system in which capital goods are owned by private individuals.

4. Marxian economics provided a foundation for capitalism.

If production, allocation, and ownership are 100% controlled by government, then we call such an economic system as Socialism.

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