Which economic system features government or worker ownership of major industries and sits between capitalism and communism?

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

Answer: (A)

The concept being tested is ownership of the means of production and how that shapes an economy. Socialism describes an arrangement where major industries are owned by the government or by workers themselves, rather than by private individuals. This setup aims to run key sectors for public or collective benefit rather than for private profit, and it often involves planning or democratic control to distribute wealth more evenly.

This places socialism between capitalism and communism on the spectrum. In capitalism, private individuals or firms own the means of production and market forces allocate resources. In communism, ownership is communal and the goal is a classless, stateless society with shared ownership. Socialism sits between them by replacing private ownership with public or cooperative ownership while the transition toward a fully classless system is a feature in some socialist theories.

Feudalism is based on a rigid land-based hierarchy with lords and peasants, not ownership of modern industries. Capitalism centers on private ownership and markets, and communism envisions complete public ownership with no state in the final arrangement. Hence, socialism best matches the description given.