A type of economy where economic decisions regarding production of goods are taken at individual level
Answers
Answer:A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses.There may be some government intervention or central planning, but usually this term refers to an economy that is more market oriented in general. true free market economy is an economy in which all resources are owned by individuals. The decisions about the allocation of those resources are made by individuals without government intervention. ... Most economic decisions are made by buyers and sellers, not the government.
Explanation:
In a market economy most economic decision making is done through voluntary transactions according to the laws of supply and demand.
A market economy is fundamentally one where entrepreneurs are free to control and co-ordinate productive resources in order to pursue profit by creating outputs that are more valuable than the inputs they use up, and free to fail and go out of business if they do not.
Economists broadly agree that more market-oriented economies produce better economic outcomes, but differ on the precise balance between markets and central planning that is best to provide stability, equity, and long term benefits.