What is market economy?

Market Economy

A market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand, and the prices of goods and services are determined in a free price system. This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production. Market economies can range from hypothetical laissez-faire and free market variants, to regulated markets and interventionist variants. Most existing market economies include a degree of economic planning or state-directed activity, and are thus classified as mixed economies.

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Some articles on market economy:

Ancient Rome And Wine - Expansion of Viticulture
... As the republic grew into empire beyond the peninsula, wine's trade and market economy echoed this growth ... The Roman market economy encouraged the provinces’ exports, enhancing supply and demand ... Because of the supply-and-demand economy, citizens possessed an ample supply of coinage, suggesting the existence of a complex market economy ...
Socialist Economics - Socialist Economies in Practice - People's Republic of China
... Main article Economy of the People's Republic of China China embraced a socialist planned economy after the Communist victory in its Civil War ... The Chinese economy broadly adopted a similar system of production quotas and full employment by fiat to the Russian model ... In recent decades China has opened its economy to foreign investment and to market-based trade, and has continued to experience strong economic growth ...
Market Economy - Criticisms
... Robin Hahnel and Michael Albert claim that "markets inherently produce class division." Albert states that even if everyone started out with a balanced job complex (doing a mix of roles of ... Without taking the argument that far, it is evident that in a market system with uneven distribution of empowering work, such as Economic Democracy ... laborers, and ultimately managers and workers, and a de facto labor market for conceptual workers (...)" ...
Chinese Socialism - Socialist Market Economy
... economic reforms, did not believe that the market economy was synonymous with capitalism or that planning was synonymous with socialism ... During his southern tour, he said, "lanning and market forces are not the essential difference between socialism and capitalism ... A planned economy is not the definition of socialism, because there is planning under capitalism the market economy happens under socialism, too ...
Socialist Market Economy
... The socialist market economy is the economic model employed by the People's Republic of China ... It is based on state-owned enterprises and an open-market economy, and has its origins in Deng Xiaoping's political platform of socialism with Chinese ... This economic system replaced the Soviety-type centrally-planned economy after the Chinese economic reforms starting in 1978 ...

Famous quotes containing the words economy and/or market:

    Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.
    Henry David Thoreau (1817–1862)

    When General Motors has to go to the bathroom ten times a day, the whole country’s ready to let go. You heard of that market crash in ‘29? I predicted that.... I was nursing a director of General Motors. Kidney ailment, they said; nerves, I said. Then I asked myself, “What’s General Motors got to be nervous about?” “Overproduction,” I says. “Collapse.”
    John Michael Hayes (b. 1919)