Which economic system is characterized by government control of production?

The economic system characterized by government control of production is a command economy. In a command economy, the government makes all decisions regarding the economy, including what goods should be produced, how much should be produced, and the pricing of those goods. This system contrasts with others that allow for more freedom and variation in production and market forces.

In a command economy, the state's centralized authority governs resource allocation, aiming to fulfil specific economic targets or social goals. This structured approach is often implemented in countries with a socialist or communist framework, where the intent is to eliminate disparities in wealth and ensure that everyone has access to basic needs.

In contrast, other systems like a market economy rely on supply and demand dynamics, where individual producers and consumers drive production and prices based on their choices. A mixed economy incorporates elements of both command and market systems, allowing for government intervention and regulation in certain sectors while maintaining a market-driven framework for others. A traditional economy is based on customs and traditions, focusing on subsistence farming or barter trade, rather than on government control. Understanding these distinctions helps clarify the defining features of different economic systems and their impacts on society.