Final answer:
Venezuela's economic system under Hugo Chavez was primarily Socialist with characteristics of a Mixed economy, focusing on state control of the oil sector and wealth redistribution, but also encountering economic challenges.
Step-by-step explanation:
During Hugo Chavez's years as president, Venezuela's economic system can best be described using the option E: Socialist. Chavez, elected in 1998, implemented policies rooted in socialist ideology, which included placing the oil industry under state control and undertaking wealth redistribution to improve the living conditions for the lower classes. While these policies had some initial success in reducing poverty, the economy later suffered from sharp declines in gross national product, high inflation, and increased unemployment. The extent to which these outcomes were due to economic policies or external factors such as sanctions remains a subject of debate. It is also worth noting that despite the socialist orientation, Venezuela's economy during Chavez's tenure showed characteristics of a Mixed system, combining command and market elements, as is common in the real world.