Which system is used when prison industries produce goods exclusively for internal use or for government agencies?

• A. Public-account system
• B. Piece-price system
• C. State-use system
• D. Contract system

Answer: (C)

The key idea is who buys the goods produced by prison industries. In the state-use system, products are intended exclusively for use within government operations or by government agencies. The government acts as the primary purchaser, so these goods are not sold on the open market to private firms. This setup supports public objectives by providing work for inmates while keeping the production within the public sector and meeting government needs. Other systems focus on how items are priced or who contracts to purchase, rather than restricting sales to internal or government use.