The economic system in which wealth and assets are owned by the government and not by the citizenry.

• A. Capitalism
• B. Socialism
• C. Feudalism
• D. Communism

Answer: (B)

Understanding who owns wealth and productive assets across different economic systems. This item points to a setup where the government owns the major resources and industries rather than individuals. That arrangement is most closely described by socialism, where the state or public bodies control the means of production to pursue more equal distribution of wealth. Capitalism centers on private ownership and markets, so it doesn’t fit. Feudalism is a hierarchical system with land owned by lords and peasants bound to the land, not a modern government ownership model. Communism envisions common ownership and a stateless or highly centralized control of resources in theory, but in introductory contexts it’s often taught alongside socialism as a system prioritizing public ownership of the means of production. Therefore, the concept described aligns with socialism.