Question

​​Marlin lives in a country where individuals may own their own property and the factors of production, however, the government lays very heavy taxes on individuals and businesses and uses the taxes to provide life-long pensions to each citizen in accordance with their economic need. The government also provides almost free medical and dental services and education through college. This kind of economic system could best be described as ________.

Answer 1

The correct answer is mixed.

Step-by-step explanation:

In a mixed economy, most economic decisions are resolved through the interaction of sellers and consumers in the market (supply and demand law). However, the State has an essential complementary role.

Therefore, in this mixed system, most decisions are made by private agents of the economy (households and businesses), who decide what, how and where to produce. But at the same time, the actions of the State are also present, covering market failures, such as providing the public with public goods or redistributing wealth through taxes and subsidies to establish a more equitable society.