market economy

market economy definition - business

market economy

An economic system based on open and competitive markets in which participants act in their own self-interest and government acts as a referee. Proponents believe a market economy results in the most efficient allocation of resources and the greatest public good.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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