market economy

[ mahr-kit i-kon-uh-mee ]
/ ˈmɑr kɪt ɪˌkɒn ə mi /
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a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.


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“Was” is used for the indicative past tense of “to be,” and “were” is only used for the subjunctive past tense.
Also called free mar·ket e·con·o·my [free-mahr-kit i-kon-uh-mee] /ˈfri ˈmɑr kɪt ɪˌkɒn ə mi/ .
Compare command economy.

Origin of market economy

First recorded in 1915–20
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2022

How to use market economy in a sentence

Cultural definitions for market economy

market economy

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.

The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.