Which economic system is characterized by government ownership and operation of major industries?

The economic system that is characterized by government ownership and operation of major industries is socialism. In a socialist system, the government typically plays a significant role in managing and distributing resources, with the goal of promoting economic equality and providing for the welfare of its citizens. This often includes ownership of key industries such as utilities, transportation, and healthcare, allowing the state to control production and service delivery to meet public needs rather than focusing solely on profit.

In contrast, capitalism emphasizes private ownership and the free market, where individuals or businesses own and operate industries, making economic decisions based on supply and demand. Communism, while similar to socialism in terms of advocating for collective ownership, takes it a step further by promoting a stateless, classless society and the complete abolition of private property. A planned economy refers to an economic system where decisions about production and investment are made by a centralized authority, but this term can encompass both socialist and communist systems and is more about the planning aspect than ownership per se. Thus, socialism is the most accurate term for a system where the government owns and operates major industries.