Market Economy - Explained
What is a Market Economy?
Written by Jason Gordon
Updated at March 26th, 2023
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is a Market Economy?
A market economy is an economic system driven by the decisions of individuals or businesses within the economy to purchase goods or services.
A market is made up of buyers and sellers of goods or services.
Private firms or individuals provide the means of production and the supply of goods and services.
Demand is based upon individual consumption and the ability to purchase the goods or services (income).
Income is based upon the ability to translate resources into items of value to transfer to others in the market.
Related Topics
- Economics
- Scarcity in Economics
- Division of Labor
- Microeconomics
- Macroeconomics
- Theory and Models
- Traditional Economy
- Command Economy
- Centrally Planned Economy
- Market Economy
- Free Market Economy
- Collaborative Economy
- Private Enterprise
- Mixed Economy
- Underground Economy
- Black Economy
- Government Market Regulation
- Capitalism
- Conscious Capitalism
- Communism
- Centrally Planned Economy
- Socialism
- Marxism
- Egalitarianism
- Plutocracy
- Neoliberalism
- Underground Economy
- Black Economy
- Globalization
- Imports and Exports
- Gross Domestic Product
- Fiscal Policy
- Social Economics
- Positive Economics
- Mathematical Economics
- Constitutional Economics
- Labor Economics
- Organizational Economics
- Development Economics
- Behavioral Economics
- Environmental Economics
- Evolutionary Economics
- True-Cost Economics
- Managerical Economics
- Experimental Economics
- Welfare Econo
