Final answer:
The mixed economy is the system that fulfills the roles of providing public goods and services, redistributing income, protecting private property rights, and resolving market failures. It combines aspects of capitalism and socialism to leverage the strengths of both private and public sectors in economic management.
Step-by-step explanation:
The economic system that provides public goods and services, redistributes income, protects private property rights, and resolves market failures is the mixed economy. This system combines elements of the private sector and public sector, aiming to harness the benefits of both capitalist and socialist economic models. By maintaining private property rights, it encourages entrepreneurial pursuits and investment. At the same time, through government intervention, it offers public goods and strives for equitable distribution where the market may not suffice.
In a mixed economy, the government plays a significant role alongside private enterprise. The government might provide public services such as healthcare, education, and welfare, which address social needs and market inefficiencies. Redistribution of income is often achieved through taxation and welfare programs, aiming to support the less fortunate and reduce inequality. Protection of private property rights in a mixed economy ensures that individuals and businesses can own and control assets, fostering economic freedom and innovation.
Key features of a mixed economy include economic freedom, government provision of certain goods and services, economic security and equity, and the presence of both private and public enterprises. Countries like the United States operate under a mixed economy, where free-market principles are balanced with government regulation and intervention to address social needs and correct market failures.