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horrorfan [7]
4 years ago
15

Economic system in which the factors of production are owned by the government

Social Studies
2 answers:
Hitman42 [59]4 years ago
6 0

This economic system is called<em> socialism.</em>

Socialism is an economic system where everyone in the society equally owns the factors of production. The ownership as such is in the hands of the<em> government</em> that controls all means of production and distribution of goods.

The factors of production are : land, labor, capital and entrepreneurship.

In a socialistic economy, the land is owned by the state and private property is limited and difficult to obtain. Labor is heavily regulated and most people are employed in state-owned companies. Workers do not have many rights and they have to obey the government which also decides what is being produced and in which capacity ( planned economy ).

Socialism does not reward people for being entrepreneurial and competitive as competition is no existing and everybody reaps the same benefits of their work.

AURORKA [14]4 years ago
6 0

Answer:

socialism

Explanation:

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