๐Ÿ“œintro to political science review

Market economy

Written by the Fiveable Content Team โ€ข Last updated August 2025
Written by the Fiveable Content Team โ€ข Last updated August 2025

Definition

A market economy is an economic system where decisions regarding investment, production, and distribution are guided by the interactions of individuals and businesses in a free market. Prices are determined by supply and demand without significant government intervention.

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