market economy

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Market Economy

A social and economic system in which prices are fixed by the law of supply and demand rather than by a government or other body. In its pure form, a market economy is an economy absent of government subsidies, incentives, or regulations. A market economy contrasts with both a planned economy and a mixed economy. No economy is a complete market economy: most countries claiming to have market economies in fact have a market economy combined with greater or lesser government regulation, sometimes called a social market. Proponents of a market economy argue that it is more efficient than any alternatives, promotes fair competition between its participants, and rewards skill and hard work. Critics allege that a market economy perpetuates class differences and rewards ruthlessness over actual labor. Milton Friedman, Friedrich Hayek, and Ludwig von Mises were three major 20th-century proponents of the market economy. See also: Capitalism, socialism, John Maynard Keynes.

market economy

see PRIVATE-ENTERPRISE ECONOMY.
References in periodicals archive ?
Information technology is only the latest in a long cyclical history of technological developments required of a free market economy rather than being a totally unique force for fundamental change.
However, the transition of a planned economy that has existed for decades to a free market economy has not so far been analyzed either as a practical or theoretical problem.
As well, arrangements have been made by Mayflower to visit Poland, Hungary and Yugoslavia in an effort to penetrate the developing free market economy.
The Museum of American Finance, an Affiliate of the Smithsonian Institution, is the nation's only independent public museum dedicated to the history of growth, opportunity, and entrepreneurship in our democratic free market economy.
Shahid Butt said the so-called free market economy had increased number of billionaires in almost all the countries while hurting the poor, and plundering the resources of developing nations through free trade and privatization.
He covers the axioms and underlying principles of a free market economy, the economics of the free market, governments and the market, factors of production, finance, innovation, and the role of the entrepreneur, and a variety of other related subjects.
However, both candidates are united by their advocacy of the same free market economy, the guiding model for the discredited Mubarak regime.
And he warned that the row over bonuses and pay threatens to undermine the jobs and prosperity provided by the free market economy.
Fuel station owners' association head, Ala Mohammad Ahmadi, told a press conference in Kabul the ministry's decision was against the rules of free market economy.
The least one would expect is cheaper holidays in Greece, as the value of its currency diminishes but, that's not going to happen as other euro countries rally in support and artificially keep the euro at a higher value than the free market economy would allow.
As you know, Turkey has a Muslim population and is a country with a democracy and free market economy.
The government is keen on maintaining the adoption of the mechanisms of free market economy, trade liberalization, encouraging local and foreign investments and tapping new markets, Minister of Trade and Industry Samir el-Sayyad said Thursday 10/03/2011.