An economic theory that stresses government management of the production and distribution of goods is.

It is a socialist theory that defends state control over the economy, rather than the free market. In this type of model the economy is considered command economy or planned economy.

Planned Economics is a production system that disregards competition.  In this type of model the state controls the country's means of production and foreign trade. It is a statist and extremely protectionist model that adopts heterodox economic policies, such as price and quantity controls. This type of economy is predominantly in communist countries such as North Korea.

An economic theory that stresses government management of the production and distribution of goods is Socialism.

Further explanation:

Socialism is an economic theory that focuses on government's role in owning and regulating the means of production, distribution, and exchange. In the socialist economy, government has a role in managing the production and distributing the goods and services with no role of private sector in the economy. The main purpose of a socialist economy is the betterment of society as a whole like universal healthcare, universal education or reducing wealth inequality. It is different from capitalism in which means of production are owned and operated by the private players with the main aim to earn maximum profits. Capitalism sometimes can lead to the case of market failure and thus the significance of the socialist economy arises.  

Therefore, an economic theory that stresses government management of the production and distribution of goods isSocialism.

Learn more:

1.Learn more about Goods production.

2.Learn more about Market Intermediary.

3.Learn more about Economic Growth.

Answer details:

Grade: Senior school

Subject: Economics

Chapter: Types of economies

Keywords: an economic theory, that stresses, government, management, of the production, and distribution, of goods, socialism, socialistic economy, government role in owning and regulating the means of production and distribution, different from capitalism, government role, significance of government.

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