Future Business Leaders of America (FBLA) Agribusiness Practice Test

In which economic system does the government control all economic matters?

1. Socialism

2. Communism

3. Capitalism

4. Anarchy

The correct answer is: Communism

The correct answer is communism, as this economic system is characterized by the government owning and controlling all means of production and distribution of goods and services. In a communist system, there is no private ownership; instead, the state takes responsibility for making decisions about what to produce, how to produce it, and who gets what, aiming to ensure equality among citizens and eliminate class distinctions. In contrast, socialism allows for some degree of private ownership and typically focuses on social welfare, where the government may control key industries but still recognizes private enterprises in other sectors. Capitalism emphasizes private ownership and market-driven economies, with minimal government intervention, where supply and demand dictate production and distribution. Anarchy represents a lack of governing authority altogether, leading to a society devoid of recognized economic systems or government control.