Market Economy (Noun)
Meaning
An economy that relies chiefly on market forces to allocate goods and resources and to determine prices.
Classification
Nouns denoting groupings of people or objects.
Examples
- The shift from a planned economy to a market economy allowed for increased competition and innovation in the industry.
- In a market economy, businesses respond to market forces such as supply and demand to maximize profits.
- A key feature of a market economy is that prices are determined by the interactions of buyers and sellers in the market.
- Critics argue that a market economy prioritizes profit over social welfare, leading to income inequality and social injustices.
- Proponents of a market economy argue that it promotes economic efficiency and growth by allowing individuals and businesses to make their own economic decisions.