Question

Prompt:
What is a market economy?

Answer 1

The market economy is a typical country which practice free economy model. ( American market).Talking about a history this kind of market was originated in Britain. (It refers a free market economic model).

Another author comment that a market economy is a system where the laws of supply and demand direct the production of goods and services.

This supply covers natural resources, capital and labour and the demands concept includes purchases by customers.

Each country has a particular form to see the market but the economic rules are universal.

Answer 2

A market economy can be defined as an economic system. In this system, the economic decisions as well as the prices of services and goods, are defined by the many interactions that have the businsses, the markets and the people in any nation.

One of the characteristics of a market economy is that the government has little or non-intervention in the regulation of prices. It is the market, -supply and demand- that establishes the economic conditions.

The market forces in modern societies drive the activities in their economies. The only case when the government intervenes is when to generate stability in the markets.