Which of the following best describes a mixed economy?

A mixed economy is characterized by the combination of elements from both market economies, where private individuals and businesses make most economic decisions, and command economies, where the government plays a significant role in economic planning and regulation. In a mixed economy, the government may intervene to address market failures, provide public goods, and ensure a degree of economic equity while still allowing for private ownership and free market principles.

This balance enables the harnessing of the efficiency and innovation seen in market systems, while also offering social safety nets and regulatory frameworks that arise in command economies. The dynamic interplay between private enterprise and governmental oversight is what defines a mixed economy, making option C the most accurate and comprehensive description.

Other options imply a more extreme or singular approach, such as complete government control or elimination of market forces, both of which do not reflect the essential characteristics of a mixed economy. Therefore, C aptly captures the essence of economic decision-making in the context of a mixed economy.