What economic practice involves state regulation and control?

What economic practice involves state regulation and control?

• A. Capitalism
• B. Socialism
• C. Mercantilism
• D. Laissez-faire

Answer: (C)

The economic practice that involves state regulation and control is socialism. In a socialist economy, the government plays a significant role in managing resources and means of production, with the aim of promoting social welfare and reducing inequalities. This often includes state ownership of key industries and services, ensuring that wealth is distributed more evenly across society. If a choice indicates a system characterized by significant state intervention and planned economies, that is inherently socialist. Mercantilism, while historically a practice where the state has a hand in controlling trade and commerce to enhance national power, is not primarily about broad state regulation over all economic aspects and focuses more on accumulation of wealth through trade. Capitalism, on the other hand, relies on private ownership and market forces without extensive state control. Laissez-faire is an economic philosophy emphasizing minimal government intervention in the economy. Thus, the essence of socialist economic practice stands out for its emphasis on state regulation and control.

The economic practice that involves state regulation and control is socialism. In a socialist economy, the government plays a significant role in managing resources and means of production, with the aim of promoting social welfare and reducing inequalities. This often includes state ownership of key industries and services, ensuring that wealth is distributed more evenly across society. If a choice indicates a system characterized by significant state intervention and planned economies, that is inherently socialist.

Mercantilism, while historically a practice where the state has a hand in controlling trade and commerce to enhance national power, is not primarily about broad state regulation over all economic aspects and focuses more on accumulation of wealth through trade. Capitalism, on the other hand, relies on private ownership and market forces without extensive state control. Laissez-faire is an economic philosophy emphasizing minimal government intervention in the economy. Thus, the essence of socialist economic practice stands out for its emphasis on state regulation and control.