WEST-E Social Studies Practice Test

In which political system does the government manage the economy but may not own all means of production?

1. Fascism

2. Socialism

3. Communism

4. Totalitarianism

The correct answer is: Socialism

In a political system characterized by the government managing the economy but not necessarily owning all means of production, the correct classification is socialism. Socialism aims to balance economic equality with a degree of individual freedom, allowing for private ownership alongside government regulation of key industries. This enables the government to influence production, distribution, and consumption through policy while still permitting some private enterprise. Fascism, on the other hand, often emphasizes extreme nationalism and authoritarian leadership, with the government exerting control over various aspects of life without necessarily managing the economy in a way that aligns with socialism. Communism advocates for complete state ownership of all means of production, leading to collective ownership without any private enterprise. Totalitarianism describes a system where the state holds absolute power over all aspects of life, which can include control over the economy, but does not specify the management style like socialism does. Thus, socialism fits the criteria outlined in the question, as it supports government intervention in the economy while allowing for a coexistence of public and private sector involvement.