What is a market economy?

Question

What is a market economy?

Answer 1

it where the business are sold. it;s importing and exporting goods and service

Answer 2

When prices rise and fall based on the level of demand. Also, when production of products rises and falls when demand for them changes.

Answer 3

A market economy is a free market economy, where market forces usually determine outcomes. A market economy is, in its simplest form, a meeting place where people truck, trade, and barter goods. If money is present then prices will be established quickly. If not, a commodity could be used as money, and prices will be set. Every person has the profit motive to drive all transactions. This usually dictates how goods are made, when they are sold, how much is made, and where it is sold and so forth. A pure market economy, without any government restrictions would likely rip itself apart. This is my historical perspective of a self-regulating market. Please read this article for more of a text book definition.

Answer 4

A market economy (you probably know it better as a "free market") is simply as economy where consumers and businesses decide on the prices and what they buy, basically an economy without government regulations.