Which economic system describes businesses that are all owned and operated by the government?

The economic system that describes businesses owned and operated entirely by the government is communism. In a communist system, the government has overarching control over the means of production and distribution of goods and services, aiming for a classless society where resources are shared equally among all members of the community. This system eliminates private ownership of businesses, ensuring that the state is responsible for all economic activities, thus making it distinct from other systems like capitalism, socialism, or a free market economy.

In contrast, capitalism emphasizes private ownership and the free market, where individuals and businesses operate independently of government control. Socialism, while it involves government ownership in some aspects, often allows for some level of private enterprise and is focused more on wealth distribution and social welfare. A free market economy is characterized by minimal government intervention, allowing supply and demand to dictate prices and resource allocation. Understanding these distinctions clarifies why communism is the correct answer, as it directly relates to the complete government ownership and operation of businesses.