What economic system prioritizes government ownership but also allows for some market mechanisms?

The correct choice is socialism, as it is characterized by a significant degree of government ownership of resources and production while still allowing for certain market mechanisms to operate. In this economic system, the government plays a central role in the economy by owning key industries and providing essential services, which aims to reduce inequality and ensure that basic needs are met for all citizens.

However, socialism also recognizes the efficiency that can be achieved through market mechanisms in certain areas. This means that while the government may own and control major sectors, there can still be private ownership and market competition in other segments, facilitating innovation and responsiveness to consumer demands. This balance aims to harness the benefits of both collective ownership and free market dynamics, leading to a more equitable distribution of resources.

In contrast, communism would prioritize total government ownership without market mechanisms, while capitalism emphasizes private ownership and minimal government intervention, leading to a system driven primarily by market forces. The concept of a free market refers to an economy where prices are determined by unrestricted competition between businesses, with little to no government regulation, which is distinctly different from the mixed approaches seen in socialism.