A market economy is an economic system in which decisions about investment, production, and the distribution of goods and services to consumers are guided by price signals created through the forces of supply and demand. A key characteristic of a market economy is the presence of factor markets, which play a major role in allocating capital and other factors of production such as labor and land.
A market economy is an economic system in which decisions about investment, production, and the distribution of goods and services to consumers are guided by price signals created through the forces of supply and demand. A key characteristic of a market economy is the presence of factor markets, which play a major role in allocating capital and other factors of production such as labor and land.
Source: Wikipedia "Market economy" · CC BY-SA 4.0
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