Future Business Leaders of America (FBLA) Agribusiness Practice Test

What type of economic system combines private ownership of production with government preferences?

1. Capitalism

2. Fascism

3. Socialism

4. Communism

The correct answer is: Fascism

The economic system that combines private ownership of production with government preferences is best described as fascism. This system allows for private enterprise and ownership but is characterized by strong government control and intervention in the economy. The government may dictate certain policies and preferences that businesses must follow, guiding the overall economic direction while still permitting some level of private ownership. Fascism typically involves collaboration between the state and businesses, often prioritizing national interests and identity over individual economic freedom. It does not completely eliminate private ownership but regulates it heavily to achieve the goals of the state, which distinguishes it from the other options listed. In contrast, capitalism emphasizes minimal government interference in economic activities, with a focus on free markets and individual ownership. Socialism advocates for collective or state ownership and aims for wealth distribution among the population, whereas communism seeks to eliminate private property altogether in favor of a classless society.