Which economic system is characterized by central government control over all major economic decisions?

The economic system characterized by central government control over all major economic decisions is communism. In this system, the state owns and controls the means of production and distribution of goods and services, effectively eliminating private ownership and market competition. The central planning authority decides what to produce, how to produce it, and for whom to produce it, with the goal of achieving equality and addressing the needs of the entire society.

Communism aims for a classless society where resources are distributed according to need rather than profit. Historical examples of this system can be seen in the former Soviet Union and modern-day Cuba, where the government plays a dominant role in all aspects of the economy.

In contrast, capitalism relies on private ownership and market forces to guide economic decisions, while socialism may allow for varying degrees of government intervention and ownership, but it does not always entail complete state control as seen in communism. Laissez-faire advocates minimal government intervention in economic matters. Understanding these distinctions highlights why communism is the correct response to the question.