market economy

[ mahr-kit i-kon-uh-mee ]

noun

1. a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.

market economy

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.

Word History and Origins

Origin of market economy¹

First recorded in 1915–20

Example Sentences

In cities such as Shenzhen and Fuzhou, foreign direct investment was welcomed, and many features of a market economy were introduced.

From Time

The market economy creates unsustainable income inequality and a wealth gap that has widened sharply during the pandemic.

From Time

Money is easy to track, and we’re used to doing that because of the market economy.

From Nautilus

But other states, especially Russia, have had trouble adjusting to a market economy, degenerating into massive kleptocracies.

From The Daily Beast

In a market economy, having a right generally means being able to pay to exercise it.

From The Daily Beast

And of course, we can't ignore the reality of a market economy.

From The Daily Beast

The difference is this:  a market economy is a tool--a valuable tool--for organizing productive activity.

From The Daily Beast

Over the past three decades, we have drifted from having a market economy to becoming a market society.

From The Daily Beast

Hardly a recipe for orderly transition, for democracy, or for market economy.

From Project Gutenberg