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.