State ownership
Definition
State ownership refers to the government's control and ownership of industries, businesses, or resources within a country. It means that the state has the power to make decisions about how these assets are used and distributed.
Analogy
Imagine a group project where one person takes charge of all the materials and decides how they will be used. In state ownership, the government is like that person who controls and manages all the resources for the benefit of society.
Related terms
Privatization: Privatization is when the government sells its owned assets or industries to private individuals or companies.
Nationalization: Nationalization is when privately-owned assets or industries are taken over by the government.
Command economy: A command economy is an economic system in which production, distribution, and prices are controlled by a central authority (usually the government).
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