market economy

(noun) An economy in which most goods and services are voluntarily produced, distributed, and exchanged by the forces of price, supply, and demand.

Audio Pronunciation: (mar·ket e·con·o·my)

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Usage Notes:

  • Plural: market economies
  • The opposite of a market economy is a command economy and the combination of the two is a mixed economy.
  • Also called:
    • capitalist economy
    • free enterprise
    • laissez-faire economy
    • private enterprise

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