What term describes a system where the state owns the means of production and distributes resources?

What term describes a system where the state owns the means of production and distributes resources?

• A. Oligarchy
• B. Capitalism
• C. Democracy
• D. Communism

Answer: (D)

Communism describes a system in which the state owns the means of production and distributes resources to meet people’s needs. The idea is to replace private ownership with collective ownership and planning, so production and output are directed by the state rather than by markets. This stands in contrast to capitalism, where private individuals or firms own productive assets and markets guide distribution; democracy is about how leaders are chosen and laws are made, not specifically how the economy is owned; and oligarchy refers to rule by a small, privileged group. So the term that fits the description is communism.

Communism describes a system in which the state owns the means of production and distributes resources to meet people’s needs. The idea is to replace private ownership with collective ownership and planning, so production and output are directed by the state rather than by markets. This stands in contrast to capitalism, where private individuals or firms own productive assets and markets guide distribution; democracy is about how leaders are chosen and laws are made, not specifically how the economy is owned; and oligarchy refers to rule by a small, privileged group. So the term that fits the description is communism.