Which economic system is characterized by government ownership and a central system of cooperative products?

The answer is socialism, which is defined by government ownership of certain means of production and the central planning of the economy to allocate resources and distribute goods. In a socialist economic system, the government often plays a prominent role in the management of economic activities with the goal of promoting social welfare and reducing income inequality.

In socialism, the focus is generally on cooperation and collective ownership, which allows for more equitable distribution of goods and services compared to more market-driven economies. This centralization of control enables the government to coordinate production and address public needs effectively, rather than leaving these decisions solely to private individuals or market forces.

Understanding this distinction helps to clarify why other economic systems like capitalism, communism, and a free market do not fit this description. Capitalism emphasizes private ownership and individual profit, while communism advocates for a classless system where all property is collectively owned but often lacks the cooperative management characteristic of socialism. A free market, on the other hand, relies heavily on private enterprise with minimal government intervention.