What type of economy is characterized by State control over economic activities?

A centrally planned economy is defined by state control over economic activities, where the government makes all decisions regarding the production and distribution of goods and services. This type of economy aims to allocate resources in a way that is theoretically planned to benefit the society as a whole. The government typically sets production targets, controls prices, and orchestrates investments across various sectors, prioritizing societal needs over individual or market-driven preferences.

In contrast, a free enterprise economy emphasizes minimal government intervention, allowing individuals and private companies to operate with maximum freedom in shaping their own economic activities. A mixed economy represents a blend of both state control and free market principles, incorporating elements from both systems to capitalize on the advantages of each. Lastly, a market economy relies heavily on supply and demand dynamics with little to no government involvement, allowing the market to dictate production and pricing without centralized control.

These distinctions clarify why the centralized control characteristic uniquely identifies the centrally planned economy as the correct answer.