Which term describes a system where both private and public sectors play a role in the economy?

A mixed economy is characterized by the combination of elements from both the private and public sectors in the economic framework. This means that while individuals and businesses may own and operate private enterprises, the government also plays a significant role in regulating or owning certain industries and providing public services. This hybrid approach aims to harness the benefits of a market-driven system, such as efficiency and innovation, while also ensuring social welfare and addressing issues like inequality that can arise in a purely capitalist system.

In contrast, capitalism primarily emphasizes private ownership and market forces, with minimal government intervention. Socialism focuses on collective or governmental ownership of the means of production to promote equitable distribution of wealth. Communism represents a more extreme form of socialism where the state aims to eliminate class distinctions entirely. The mixed economy offers a balance, allowing for both free enterprise and social responsibility, which makes it the correct answer in this context.