- The definition of a market economy is one in which price and production is controlled by buyers and sellers freely conducting business.
An example of a market economy is the United States economy where the investment and production decisions are based on supply and demand.
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market economy - Business Definition
market economy - Cultural Definition
An economy in which the greater part of production, distribution, and exchange is controlled by individuals and privately owned corporations rather than by the government, and in which government interference in the market is minimal. Although a total market economy is probably only theoretically possible (because it would exclude taxation and regulation of any kind), capitalist economies approximate it and socialist economies are antithetical to it (see capitalism and socialism). Market economies are also called free economies, free markets, or free enterprise systems.