Question

Define market economy ​

Answer 1

an economic system in which production and prices are determined by unrestricted competition between privately owned businesses is known as market economy

Answer 2

Market economy is an economic system in which the production, allocation and consumption of goods and services are governed by the forces of demand and supply and their consequences.

Explanation:

Important characteristics of Market Economy:-

• Ownership of property or all or most of the assets,resources, goods and services are private owned without any external intervention.
• Freedom of economic activity or any individual can produce and sell any product or services to anyone and anyone can alternatively buy any product in a competitive market without any external regulations.
• Encouraging free competition or in any market economy,markets are mostly unregulated and free competition is encouraged.There are no or minimum government regulations in the market and demand and supply of goods and services are determined by the forces of demand and supply.
• Limited government intervention indicating that markets are freely competitive and everyone has the right to engage in any legal economic activity.