Market Economy

A market economy is an economic system where the production and distribution of goods and services are driven by supply and demand, with minimal government intervention. Prices are determined by competition between businesses, and consumers make decisions based on their preferences and purchasing power. In a pure market economy, the government’s role is limited to enforcing laws and regulations to protect property rights and ensure fair competition.

Example

The United States operates primarily as a market economy, where businesses compete to sell goods and services to consumers, with prices determined by supply and demand.