The correct answer is option 'C': Government is involved in regulating and owning some businesses.

Explanation:

Mixed economy is an economic system that combines elements of both the market economy and the planned economy. In a mixed economy, the government plays a significant role in regulating and owning certain businesses, while allowing other businesses to operate independently with minimal government interference. Canada's economy is often referred to as a mixed economy because of the following reasons:

1. Government Regulation:
- The government in Canada plays a crucial role in regulating various sectors of the economy through laws, policies, and regulations. These regulations ensure fair competition, consumer protection, and the well-being of the society as a whole.
- The government sets minimum standards for wages, working conditions, and safety measures to protect workers' rights and ensure a level playing field for businesses.

2. Ownership of Certain Businesses:
- The Canadian government owns and operates several businesses and industries in key sectors such as energy, transportation, and telecommunications.
- For example, Crown corporations like Hydro-Québec, Canada Post, and Via Rail are government-owned entities that provide essential services to the public.

3. Public Services:
- The government in Canada provides various public services such as healthcare, education, and social welfare programs.
- These services are funded through taxation and are aimed at ensuring equal access and opportunities for all citizens.

4. Private Sector:
- In addition to government-owned businesses, Canada also has a thriving private sector where businesses can operate independently without excessive government interference.
- Private businesses are free to make their own decisions regarding production, pricing, and investment, as long as they comply with relevant laws and regulations.

5. Market Forces:
- Canada's economy also relies on market forces such as supply and demand to determine prices, allocate resources, and drive economic growth.
- The interaction between government regulations and market forces creates a balance between public and private interests within the economy.

In conclusion, Canada's economy is referred to as a mixed economy because the government is involved in regulating certain businesses and owns various industries, while allowing other businesses to operate independently. This approach aims to combine the efficiency of the market system with the government's role in ensuring social welfare and economic stability.