Question. Let $D_x := \frac{\mathrm{d}}{\mathrm{d}x}$ be the differentiation operator. Is $S = \{D_x, xD_x, x^2 D_x, x^3 D_x\}$ a basis for a Lie algebra (standard derivation Lie bracket, i.e. $[x,y]=x\circ y - y\circ x$)? If not, can $S$ be extended to a set generating a Lie algebra?
Attempt. $S$ is not a basis, since $\left[x^2 D_x, x^3 D_x\right] = x^4 D_x \notin \mathrm{span} (S)$. However, I'm confused about the next part of the question. As far as I'm aware, any set can generate a Lie algebra, no? The generating set doesn't need to be a basis; the generated algebra automatically includes all Lie brackets and linear combinations.
Consequently, is the question incorrect? Is it meant to be whether $S$ can be extended to a basis for a Lie algebra? Assuming that is the case, my answer would be yes, assuming the Lie algebra can be infinite dimensional: $S = \{D_x, xD_x, x^2 D_x, x^3 D_x, ...\}$. If the Lie algebra has to be finite, then no; adding a new $x^n D_x$ element to the basis would still just get us
$$\left[x^{n-1} D_x, x^n D_x\right] = x^{2n-2} D_x \notin \mathrm{span} (S),$$
for $n \geq 3$.
Is this correct?