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 ?
If you have chosen the free-market economy as the economic model for your country for this or that reason, you have to act in line with its rules.
pluralism and a free-market economy create and expand opportunity.
Like the rest of Eastern Europe, Bulgaria suffered during its transition to a free-market economy.
Having a free-market economy is a predetermined affair and not subject to any political discussions.
There is more to American democracy than a free-market economy and the dream of material success.
Its natural relationship to West Germany should also make its transition to a free-market economy a bit easier than that confronting others in the Eastern Bloc.
Based in Florida, the Committee is a non-partisan organization committed to family values, democracy, and a free-market economy.
In Mexico, many state-owned health clinics will be operating in more of a free-market economy, according to EGADE's Alonso Gomez.
Instead, the transition (change) to democracy and a free-market economy has been slow and difficult.
Over the long run, such exchange programs, which expose young Russian leaders to the basics of a free-market economy, will pay off in bigger dividends than any conceivable financial arrangements.
The greatness of a free-market economy is that it does not depend upon the wisdom of those who happen to be on top at the moment.
Even a free-market economy isn't a perfectly efficient world where all opportunities are grasped and acted upon instantaneously; sometimes businesses make mistakes because they are stuck in a mindset that, say, puts a higher threshold payback period on energy savings than on other investments.