In which economic system does a significant amount of government regulation coexist with a marketplace?

A mixed economy is characterized by a combination of both private enterprise and significant government regulation. In this system, the government plays an active role in guiding the economy while allowing for the functioning of a free market where supply and demand dictate prices and production. This balance allows the government to address market failures, promote social welfare, and regulate industries considered vital for public interest, while also encouraging entrepreneurial activities and consumer choice.

In contrast, other economic systems do not exhibit this blend of government involvement and market freedom. A traditional economy relies heavily on customs and traditions, usually with little to no government regulation, while a market economy emphasizes minimal government intervention, focusing instead on private ownership and market forces alone. A command economy, on the other hand, involves complete government control over economic decision-making, eliminating the free market aspect entirely. Thus, a mixed economy is unique in fostering both regulation and market dynamics, making it the correct answer.