What is the economic system in which the means of production are owned and controlled by the state, and goods and services are distributed as a cooperative enterprise without regard to profit?
Group of answer choices
A Capitalism
B Communism
C Totalitarianism
D Socialism
The correct answer and explanation is:
The correct answer is B) Communism.
Communism is an economic and political system in which the means of production, such as factories, land, and resources, are owned and controlled by the state or the community as a whole. The goal is to eliminate private ownership of the means of production, which would theoretically ensure that wealth and power are distributed more equally among the population. In a communist system, goods and services are not produced for profit; instead, they are distributed according to need.
In communism, the state plays a central role in managing and directing the economy. This contrasts with capitalism, where private individuals or businesses own the means of production, and goods and services are exchanged for profit. Communism aims to create a classless society, where there are no distinctions between the rich and the poor. The state takes on the responsibility of ensuring that everyone has access to the resources they need to live, such as housing, healthcare, education, and employment.
One of the foundational principles of communism is the idea that capitalism leads to inequality and exploitation of workers, as the owners of capital seek to maximize profits. Communism seeks to eliminate this by ensuring that the benefits of production are shared equally among all people, removing class divisions.
Although communism has been theoretically advocated by thinkers like Karl Marx, in practice, attempts to implement communism have faced challenges. In many cases, communist regimes have turned authoritarian, with centralized control in the hands of a single party or leader. However, the underlying concept remains a stateless, classless society where the government is responsible for organizing and distributing resources.