What is the economic system in which the government makes all economic decisions?

The economic system in which the government makes all economic decisions is communism. In a communist system, the state controls the means of production and distribution, aiming for a classless society where goods and services are available to all. This system is characterized by collective ownership of property and resources, abolishing private ownership to promote equality among citizens.

In contrast, capitalism relies on individual ownership and free markets, allowing private entities to make economic decisions. Socialism, while it includes significant government involvement in the economy, typically allows for some level of private ownership and market mechanisms alongside government control. Feudalism is an ancient economic system based on land ownership and the exchange of land for labor, differing significantly from the principles of state-controlled economies. Understanding these distinctions highlights the unique features of communism as a system where the government exerts total control over economic activities.