market economy

American  

[mahr-kit i-kon-uh-mee] / ˈmɑr kɪt ɪˌkɒn ə mi /

noun

1. 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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market economy Cultural  

1. 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.

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Etymology

Origin of market economy

First recorded in 1915–20

Compare meaning

How does market-economy compare to similar and commonly confused words? Explore the most common comparisons:

• market economy vs. command economy
• market economy vs. capitalism

Example Sentences

The solution for that is collusion, but it’s illegal in market economies.

From Barron's

China has surpassed every other market economy to become No. 2.

From MarketWatch

When China began embracing a market economy in the 1970s, its leaders made a similar demand to American companies.

From Los Angeles Times

A modern market economy like the UK depends on a basic assumption of truthfulness, points out Dr David Hugh-Jones, a social scientist formerly based at the University of East Anglia.

From BBC

When considering a president's influence on the economy, it's important to recognize that we have a market economy, said Michael Walden, a Reynolds Distinguished Professor Emeritus at North Carolina State University.

From Salon