market economy


Definition of market economy

: an economy in which most goods and services are produced and distributed through free markets

Examples of market economy in a Sentence

Recent Examples on the Web The alternative to that was a market economy with limited freedoms — China. New York Times, "People Are Dying. Who Do We Save First With the Vaccine?," 24 Dec. 2020 Friedman noted correctly that, in a market economy, profits represent value created for customers. Alexander William Salter, WSJ, "Profit Keeps Corporate Leaders Honest," 8 Dec. 2020 Once a technology becomes normalized into the market economy, there is no limit to potential new applications. Martin N. Ross, Scientific American, "An Underappreciated Danger of the New Space Age: Global Air Pollution," 6 Nov. 2020 Decades later, in 2005, in a sinister irony of the market economy, this print of an elderly man waiting in a relief line sold at Sotheby’s for $822,400. Valeria Luiselli, The New York Review of Books, "Things as They Are," 3 Nov. 2020 Bernie Sanders, meanwhile, has advocated for universal free health care, canceling all student debt, and expanding Social Security benefits within America's free-market economy. Leslie Gornstein, CBS News, "What is socialism? And what do socialists really want in 2020?," 23 Sep. 2020 For years, the world has watched and waited for China to become more like a free-market economy, thereby reducing American security concerns. Daniel Rosen, WSJ, "China Backslides on Economic Reform," 22 Sep. 2020 This problem did not arise only after the fall of the Soviet Union and Russia’s nominal transformation to a market economy. Jennifer Taub, Washington Post, "Trump among the kleptocrats," 3 Sep. 2020 Duda and the Law and Justice party, both in power since 2015, have been credited for making good on promises to reduce the economic inequality that came with the country's transition from communism to a market economy three decades ago. Fox News, "Poland reelects President Andrzej Duda in narrow victory over liberal Warsaw mayor Rafal Trzaskowski," 12 July 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'market economy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of market economy

1918, in the meaning defined above

Keep scrolling for more

Learn More about market economy

Time Traveler for market economy

Time Traveler

The first known use of market economy was in 1918

See more words from the same year

Statistics for market economy

Last Updated

12 Jan 2021

Cite this Entry

“Market economy.” Dictionary, Merriam-Webster, Accessed 17 Jan. 2021.

Keep scrolling for more

More Definitions for market economy

market economy


English Language Learners Definition of market economy

: an economic system in which prices are based on competition among private businesses and not controlled by a government

More from Merriam-Webster on market economy Encyclopedia article about market economy

Comments on market economy

What made you want to look up market economy? Please tell us where you read or heard it (including the quote, if possible).


Test Your Vocabulary

Words of Snow and Ice Quiz

  • image1037863653
  • Which of the following refers to thin, bending ice, or to the act of running over such ice?
True or False

Test your knowledge - and maybe learn something along the way.


Anagram puzzles meet word search.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!