Question

What is a market economy?

Answer 1

A market economy is an economic system where decisions regarding the production, distribution, and consumption of goods and services are primarily determined by the interactions of supply and demand in the marketplace. In a market economy, businesses and individuals make their own choices based on prices determined by supply and demand, and they can freely buy and sell goods and services. The government's role is limited to enforcing laws and regulations to ensure fair competition, protect property rights, and resolve disputes.