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 city wants to avoid that, Schutte said, and embrace a free-market economy. Aubrey Wieber, Anchorage Daily News, "Regulations helped push marijuana shops into a few Anchorage neighborhoods. Now, there are worries over ‘green light’ districts.," 17 Nov. 2019 For days, students in Chile — South America’s model of a free-market economy and an oasis of regional stability — had been jumping turnstiles at subways to protest the transit rate hike. Washington Post, "A government chased from its capital, a president forced into exile: A storm of protest rages in South America.," 14 Nov. 2019 Friedman was asked to draw up a program that would move Israel from socialism toward a free-market economy. Lee Edwards, National Review, "Three Nations That Tried Socialism and Rejected It," 14 Oct. 2019 Providing necessary goods or services that inherently would not be produced in a purely free-market economy is one of the most basic functions of government. Edward Lotterman, Twin Cities, "Real World Economics: Highway 91 revisited reflects our history," 29 Sep. 2019 Congress had intended it to prevent corporations from putting a chokehold on a free-market economy by monopolizing an industry. Ron Grossman,, "As Chicago teachers vote to authorize a strike, a look back at the city’s labor history," 27 Sep. 2019 This trend is distorting the definition of success in a free-market economy. Nicole Gelinas For Cnn Business Perspectives, CNN, "WeWork's downfall shows how ridiculously overvalued so many startups are," 26 Sep. 2019 Georgieva, who will take over at the IMF on Oct. 1, is the fund’s first leader to come from an emerging market economy rather than one of the traditional European economic powers such as Germany or France. Washington Post, "Economist who grew up in communist Bulgaria is new IMF chief," 25 Sep. 2019 Unions became synonymous with waste and sludge that have no place in a free-market economy. Lila Maclellan, Quartz at Work, "The UAW started its biggest labor strike in years with one new advantage," 16 Sep. 2019

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.

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First Known Use of market economy

1929, in the meaning defined above

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Time Traveler for market economy

Time Traveler

The first known use of market economy was in 1929

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Statistics for market economy

Last Updated

28 Nov 2019

Cite this Entry

“Market economy.” The Dictionary, Merriam-Webster Inc., Accessed 9 December 2019.

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More Definitions for market economy

market economy


Financial Definition of market economy

What It Is

A market economy is structured to allow market forces to determine prices with little or no government involvement.

How It Works

In theory, a market economy's functions are based on fluctuations in supply and demand for specific goods and services across an entire market. This relationship results in market prices that efficiently distribute goods and services among market participants who are willing and able to pay for them. Regulations by government are theoretically unnecessary, since market forces shift supply and demand and signal price adjustments conducive for efficient exchange of goods and services. Capitalism in its purest form exists in a market economy.

Why It Matters

Most developed industrial economies are a hybrid of market economies and government oversight. Fiscal and economic policies are implemented to protect the less fortunate and sustain overall well-being, include minimum wage laws, social insurance programs and subsidized health care.

Source: Investing Answers

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

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