The Soviet Union implemented a command economy, also known as a planned economy, where the state owned all means of production and determined output levels, prices, and distribution methods. This system aimed to eliminate market competition and promote economic equality by allocating resources based on central planning rather than consumer demand. Key industries, including agriculture, manufacturing, and services, were state-controlled, and private ownership was largely abolished. The government set ambitious production quotas, often resulting in inefficiencies, shortages, and surpluses, which hindered innovation and adaptability. This economic structure was a defining characteristic of the Soviet regime, influencing its political and social dynamics until its dissolution in 1991.