An economy that rewards hard work with more pay but at the same time uses taxes to limit wealth inequality is what type of system?

This type of system is often referred to as a social market economy. It combines free-market principles with a strong regulatory framework that ensures fair competition and social welfare. In such an economy, hard work is incentivized through higher wages, while progressive taxation and social policies help to reduce wealth inequality and provide a safety net for those in need. This approach aims to balance economic efficiency with social equity.