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 ?
Market-based sourcing is fundamentally different from the UDITPA approach in that it is customer-centric and focused on the location where the service is received rather than service provider-centric and focused on the location where the service is performed.
In response to its 2007 Reliability Needs Assessment (RNA), released in March as the first stage of the CRPP cycle, the NYISO has received viable proposals for market-based solutions to the reliability needs set forth in the RNA.
These data collection requirements would apply to all market-based rate sellers and entities trading virtual products or holding financial transmission rights.
While implementing market-based and more performance-oriented pay systems is both doable and desirable, organizations' experiences show that the shift to market-based and more performance-oriented pay must be part of a broader strategy of change management and performance improvement initiatives.
The Governor's plan includes market-based solutions, an individual mandate, incentives to encourage healthy behavior, an emphasis on preventive care, and shared responsibility among individuals, employers, government and health care providers.
The company is seeking approval to sell at market-based rates energy, capacity, and certain ancillary services, to any buyer that is not a franchised public utility.
The Goldman Sachs Center for Environmental Markets was established when the firm instituted its environmental policy framework and supports independent research, programs, and other market-based opportunities with partners in the academic and nongovernmental communities to develop public policy and other options for establishing effective and efficient markets around climate change, biodiversity conservation and ecosystem services.
Burd underscored the importance of renewing the national discussion on health care reform and crafting market-based, bipartisan solutions to the nation's health care crisis.
The Standard establishes a market-based approach that will enable the state to achieve increasingly demanding tiered targets in energy efficiency, demand-side resources and conservation through 2010.
The certificate authorizes Inergy to construct and operate the Phase II expansion under market-based rate authority, authorizes market-based rates for its new Interruptible Wheeling Service, and allows for the connection of Stagecoach to the Millennium pipeline project when in service.