Final answer:
The economic and governmental system based on public ownership of the means of production and exchange is known as communism (C), which is characterized by comprehensive government control over all economic activities, contrasting with capitalism and socialism. The correct option is (c)
Step-by-step explanation:
An economic and governmental system based on public ownership of the means of production and exchange can be described as communism (C). In such a system, the government owns or controls factories and the workforce and is responsible for making decisions about production types and quantities. These decisions are not influenced by market forces but are planned by the government, which is why these economies may also be referred to as planned or command economies. Socialism is related but varies in some respects, as the government owns major resources and provides social services, though there can be some form of private enterprise. Capitalism, on the other hand, is a market-driven system where private individuals or firms own resources and operate based on supply and demand.
In contrast to capitalism, both communism and socialism aim to reduce economic inequalities by redistributing wealth in society. However, in practice, these economic systems operate very differently in terms of property rights, economic incentives, and individual freedoms. The role of government in communism is extensive as it directs all economic activities, unlike in capitalism where the government's role might be limited to regulation and enforcing private property rights.