marketeconomy
A market economy is an economic system in which production and prices are largely determined by supply and demand in competitive markets. It rests on private property, voluntary exchange, and the freedom for buyers and sellers to enter and exit markets. Prices serve as signals that guide resource allocation and production decisions.
In a market economy, consumers influence what is produced through demand, while producers respond with supply.
Most economies are mixed, combining market mechanisms with government intervention. The state enforces property rights and
Advantages often cited include efficiency, dynamic growth, consumer choice, and responsiveness to preferences. Limitations or risks
Historically, market-oriented reasoning emerged with classical economists like Adam Smith and evolved through industrialization and globalization.