Under the NEP, which sector remained under state control?

• A. Agricultural sector remained under state control
• B. Private trade was unrestricted
• C. Light industry remained under state control
• D. Heavy industry remained under state control

Answer: (C)

The NEP created a mixed economy: the state kept control of essential, strategic parts of the economy while allowing private initiative in others. Light industry staying under state control reflects the attempt to ensure a steady supply of consumer goods and maintain planning direction over the production of everyday items. This preference helped stabilize the economy after War Communism and kept government influence where it was most crucial for social stability. By contrast, agriculture was largely liberalized for peasant ownership and private traders could operate in many cases, and heavy industry, along with banking and foreign trade, remained under state control as the core of the command economy.