Horizontal consolidation is where companies producing the same product they merge into one company producing one specific product. Capitalism is economic system based on the private ownership and the intention of production and distribution making a profit for their business. Free enterprise is a economic system where a business operates in competition with other companies without state supervision or control. Socialism is a political and economical theory which advocates that the means of production, distribution and exchange should be owned by the community.
So the answer to "In which type of economic system does the government control the means of production and distribution?" is socialism. Hope i helped but i wanted you to understand the difference is the simplest form.