market economy

American

[mahr-kit i-kon-uh-mee] / ˈmɑr kɪt ɪˌkɒn ə mi /

noun

a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.

market economy Cultural

An economy in which the greater part of production, distribution, and exchange is controlled by individuals and privately owned corporations rather than by the government, and in which government interference in the market is minimal. Although a total market economy is probably only theoretically possible (because it would exclude taxation and regulation of any kind), capitalist economies approximate it and socialist economies are antithetical to it (see capitalism and socialism). Market economies are also called free economies, free markets, or free enterprise systems.

Etymology

Origin of market economy

First recorded in 1915–20

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Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

But I keep stumbling over one small problem with the doomsday vision: It requires a breakdown in how the market economy functions.

From The Wall Street Journal

Tourism has also tanked since the Covid pandemic, in part because Cuba isn’t a market economy.

From The Wall Street Journal

The solution for that is collusion, but it’s illegal in market economies.

From Barron's

China has surpassed every other market economy to become No. 2.

From MarketWatch

When China began embracing a market economy in the 1970s, its leaders made a similar demand to American companies.

From Los Angeles Times

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023