Public ownership of productive factors is a feature of_______?

1. Analyze the question The question asks which economic system is characterized by public (state or collective) ownership of the factors of production (land, labour, capital, entrepreneurship).

2. Explain the concept Economic systems differ mainly in who owns the factors of production and who decides what to produce:

• Socialism: The government or community owns the major means of production, such as land, factories, and mines. The aim is to distribute wealth more equally and plan production for the benefit of society.
• Capitalism: Factors of production are privately owned. Individuals and firms make decisions guided by the price system and the profit motive.
• Feudalism: This is an older system in which land is owned by lords or nobles and worked by tenants or serfs in return for protection. Ownership is concentrated in a landed class, not the public.
• Mixed economy: Public and private ownership exist side by side. Nigeria is an example, with government-owned enterprises alongside private businesses.

3. Step-by-step solution

• Step 1: Identify the key phrase: "public ownership of productive factors."
• Step 2: Eliminate the systems based on private ownership. Capitalism (B) is out, and feudalism (C) is out because land is held by lords.
• Step 3: A mixed economy (D) has public ownership only as one of its features, shared with private ownership. It is not defined by public ownership.
• Step 4: Socialism is the system where public ownership of the means of production is the central, defining feature.

4. Answer A. Socialism

5. Exam tip Match each system to its ownership pattern:

• Capitalism = Private ownership (think "Capital = Cash in private hands")
• Socialism = State/Society ownership
• Mixed = Both

Whenever you see "public," "state," or "collective" ownership as the main feature, think socialism.