market economy
Supply-demand system
A market economy is an economic system where prices, production, and distribution are determined primarily by supply and demand rather than central planning.
Private individuals and businesses make most decisions about what to produce and consume.
The transition from communism to a market economy proved difficult.
Most modern economies are mixed, combining market forces with some government intervention.
Furnish or stock
- demandForceful request or requirement
- scarcityInsufficiency of something needed
- opportunity costSacrificed alternative's worth
- rational choiceLogically optimal decision
efficiency · allocation · externality · transaction cost · resource allocation
Privately owned, competitive economy
- laissez-faireNoninterference in commerce
- invisible handUnintended societal benefit from self-interest
- private propertyIndividually owned assets
- profit motiveDrive to earn money
entrepreneurship · supply and demand · consumer choice · self-interest · wealth creation · Adam Smith · Milton Friedman · neoliberalism
Removing governmental business restrictions
- liberalizationReducing state economic controls
- private sectorEconomy outside government control
- public offeringSecurities sale to investors
- corporatizationRestructuring as a corporation
nationalization · management buyout · divestiture · Washington Consensus · Thatcherism · commercialization
Mutual giving and receiving
- importObtain from overseas
- exportForeign-bound sale
- tariffTax on traded goods
- commodityFungible traded good
transaction · supply chain · trade agreement · free trade · protectionism · trade deficit · surplus · quota
Ongoing contest between opponents
- antitrustAgainst corporate market dominance
- monopolyOne seller, no substitutes
- oligopolyFew firms dominate market
- duopolyTwo-seller market structure
price war · barriers to entry · differentiation · innovation · incumbent · challenger · niche · brand loyalty
supply
Furnish or stock
- demandForceful request or requirement
- scarcityInsufficiency of something needed
- opportunity costSacrificed alternative's worth
rational choice · efficiency · allocation · externality · transaction cost · resource allocation
free enterprise
Privately owned, competitive economy
- laissez-faireNoninterference in commerce
- invisible handUnintended societal benefit from self-interest
- private propertyIndividually owned assets
profit motive · entrepreneurship · supply and demand · consumer choice · self-interest · wealth creation · Adam Smith · Milton Friedman · neoliberalism · individual liberty
deregulation
Removing governmental business restrictions
- liberalizationReducing state economic controls
- private sectorEconomy outside government control
- public offeringSecurities sale to investors
corporatization · nationalization · management buyout · divestiture · Washington Consensus · Thatcherism · commercialization
exchange
Mutual giving and receiving
commodity · transaction · supply chain · trade agreement · free trade · protectionism · trade deficit · surplus · quota · customs
rivalry
Ongoing contest between opponents
- antitrustAgainst corporate market dominance
- monopolyOne seller, no substitutes
- oligopolyFew firms dominate market
duopoly · price war · barriers to entry · differentiation · innovation · incumbent · challenger · niche · brand loyalty · competitive advantage
- Post-Communist Transitiondemocratization, liberalization, free elections, regime change, Velvet Revolution
- capitalismcapitalism, free enterprise, private property, profit motive, supply and demand
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- economic systemscapitalism, mercantilism, communism, feudalism, socialism
- economiesprivate sector, public sector, developing nation, pre-industrial, post-industrial
- European Economiesliberalization, capitalism, restructuring, investment, foreign investment
market economycommand economy
State-controlled economic system
planned economy · central planning · socialist economy · dirigisme · controlled economy
market economypublic ownership
State-held property or enterprise
socialist economy · state capitalism · communism · state ownership · socialism
market economycommunism
Collective ownership system
socialism · Marxist economics · Soviet model · Stalinism · Maoism
market, economy, economic, marketing, supermarket, economical, markets, economics, marketplace