Final answer:
Socialism (option a) is the economic policy where the government regulates the price of goods and services, different from capitalism where the market forces determine prices with minimal government intervention.
Step-by-step explanation:
The type of economic policy where the government regulates the price of goods and services is referred to as socialism. In a market economy such as capitalism, prices are determined by supply and demand with minimum government intervention. In contrast, a socialist economy has significant government control over the distribution and pricing of goods and services, often aiming to achieve a more equitable distribution of resources. While a mix-market economy has elements of both government intervention and free-market practices, and competition is an attribute of market economies where multiple entities vie to attract consumers, neither of these is defined by direct price-setting by the government.
All market-based economies, however, do operate within a framework of regulations to enforce contracts, collect taxes, and protect health and the environment. These regulatory actions can influence competition and business practices, but they do not equate to socialism's characteristic price-setting role. According to economist Friedrich Hayek, substantial government control over prices could lead to a command economy, which he argued would be detrimental to economic prosperity.