What political theory advocates state ownership of industry?

• A. Socialism
• B. Free Market System
• C. Government Agencies
• D. Public Policy Alternatives

Answer: (A)

State ownership of industry is a hallmark of socialism, a political and economic theory that argues the means of production—like factories and natural resources—should be owned or controlled by the community as a whole, often through the government. This approach aims to reduce inequality and prevent private monopolies by placing key industries under public or governmental oversight.

In contrast, a free market system emphasizes private ownership and voluntary exchange with limited government involvement, letting markets allocate resources through competition. Government agencies are parts of the public administration that carry out laws and provide services, not a theory about who owns industry. Public policy alternatives refer to different options policymakers might consider, rather than a framework for ownership of production.

Because socialism centers on state ownership of industry, it best fits the statement.