The Soviet economic system was a centrally planned economy, and the state controlled all economic activities. The Soviet government was responsible for making all economic decisions, and it had complete control over all resources, including land, labor, and capital. This meant that the government controlled the production, distribution, and pricing of goods and services in the economy.

State Ownership of Resources:
The Soviet government owned all the means of production, including factories, mines, and farms, and it also controlled the distribution of resources such as raw materials, fuel, and energy. The government determined the output of each enterprise, the number of workers to be employed, the prices of goods, and the allocation of resources to different sectors of the economy.

Central Planning:
The Soviet economy was based on central planning, meaning that the government created detailed plans for the production of goods and services. These plans were developed by the State Planning Committee (Gosplan), which set targets for each enterprise and sector of the economy. The government also controlled foreign trade and set prices for imports and exports.

State Allocation of Resources:
The government allocated resources to different sectors of the economy based on its priorities. For example, during the Soviet period, the government gave priority to heavy industry, such as steel production, and neglected consumer goods such as clothing and food. The government also controlled the distribution of goods and services, and it determined the prices at which they were sold.

Conclusion:
In summary, the Soviet government controlled the economy through state ownership of resources, central planning, and state allocation of resources. The government controlled the production, distribution, and pricing of goods and services, and it determined the priorities for economic development. Therefore, the correct answer to the question is option C - State.