And the government sells these goods and services. The government also decides how the talents and skills of its workers are to be used. We have classified economic systems according to the way they answer three basic questions of what, how, and who. The means of production are used to produce other goods and services. If the government owns and operates almost all of the nation's means of production, then that nation's economic system is called communism .
China has a communist economic system.
Almost all of the means of production are publicly owned-that is, owned by the government. Government planners decide the answers to the basic economic questions. Farming on private plots of land is sometimes allowed. In recent years, the Chinese government has been allowing more and more private businesses to operate. Sweden is an example of a country whose economic system is often described as socialist.