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The economic system is guided by supply and demand but benefits from some government planning and control.

A) Capitalism
B) Socialism
C) Communism
D) Mixed economy

User Derek W
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Final answer:

The economic system with a balance of supply and demand guided by the market, but with government planning and control, is termed a mixed economy. It blends features of capitalism and socialism or communism.

Step-by-step explanation:

The economic system described in the question indicates a structure that is guided by supply and demand but also benefits from a certain degree of government planning and control. This system is best defined as a mixed economy. In contrast to the other options:

  • Capitalism refers to an economic system where the production and distribution of goods are determined by private owners for profit, mainly in a competitive market without much government intervention.
  • Socialism involves an economic system where the means of production, distribution, and exchange are owned or regulated by the community as a whole, often through a cooperative or public collective.
  • Communism involves a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.

A mixed economy embodies elements of both market economies (like capitalism) and command economies (like socialism or communism) to various degrees, hence it includes both private enterprise and a certain degree of state intervention.

User Matt Bart
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