Definitions for market economy
This page provides all possible meanings and translations of the word market economy
market economy, free enterprise, private enterprise, laissez-faire economy(noun)
an economy that relies chiefly on market forces to allocate goods and resources and to determine prices
An economy in which goods and services are exchanged in a free market, as opposed to a state-controlled or socialist economy; a capitalistic economy.
A market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand, and prices of goods and services are determined in a free price system. The major defining characteristic of a market economy is that decisions on investment and the allocation of producer goods are mainly made through markets. This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production. Market economies can range from hypothetical laissez-faire and free market variants to regulated markets and interventionist variants. In reality market economies do not exist in pure form, since societies and governments regulate them to varying degrees. Most existing market economies include a degree of economic planning or state-directed activity, and are thus classified as mixed economies. The term free-market economy is sometimes used synonymously with market economy, but it may also refer to laissez-faire or Free-market anarchism. Market economies do not logically presuppose the existence of private property in the means of production; a market economy can consist of various types of cooperatives, collectives or autonomous state agencies that acquire and exchange capital goods with each other in a free price system. There are many variations of market socialism that involve employee-owned enterprises based on self-management that operate in markets, as well as models that involve public ownership of the means of production where capital goods are distributed through markets.
Find a translation for the market economy definition in other languages:
Select another language:
Discuss these market economy definitions with the community:
Use the citation below to add this definition to your bibliography:
"market economy." Definitions.net. STANDS4 LLC, 2014. Web. 29 Jul 2014. <http://www.definitions.net/definition/market economy>.