Final answer:
No, an economy that combines elements of capitalism and socialism is known as a mixed economy. This type of economic system includes features from both systems and can vary in the level of government intervention and market freedom.
Step-by-step explanation:
An economy that combines elements of both capitalism and socialism is not referred to as a dysfunctional economy; rather, it is known as a mixed economy. These mixed economies include features from both capitalist market economies and socialist command economies. For example, the United States has a market-oriented economy with some government intervention, primarily to enforce property rights and regulate markets to prevent monopolies.
On the other end of the spectrum, in a command economy, the government has broad control over production and distribution of goods and services. Between these two extremes, economies like those of many European and Latin American countries exist, combining market processes with a greater degree of government involvement, which might include social welfare programs and economic planning.
It's important to understand that these mixed economies may pull different levels of elements from each system based on their national goals, history, and culture, thereby not fitting squarely into one category but functioning with elements of both systems.