Market Economy
Definition: A "market economy" is a type of economic system where the prices of goods and services are determined by supply and demand. This means that people buy and sell freely, and the market (the place where buying and selling happens) decides what is produced, how much is produced, and at what price it is sold.
Usage Instructions: - You can use "market economy" when discussing different types of economic systems. It is often compared to other systems, like a "command economy," where the government makes most of the economic decisions.
Example: - "The United States has a market economy, allowing businesses to compete freely and set their own prices."
Advanced Usage: - In a market economy, competition plays a crucial role. If one business charges too much for a product, customers may choose to buy from a competitor who offers a lower price. This competition helps to keep prices fair and encourages innovation.
Word Variants: - "Market" (noun): A place where goods are bought and sold. - "Economy" (noun): The system of production and distribution of goods and services in a country. - "Marketable" (adjective): Something that can be sold easily.
Different Meanings: - "Market" can also refer to a physical location, like a farmer's market, where people buy fresh produce. - "Economy" can refer to the overall wealth and resources of a country or region.
Synonyms: - Free market - Capitalist economy - Supply-and-demand economy
Idioms: - "The market will decide": This means that the forces of supply and demand will determine the outcome of a situation, rather than any outside influence.
Phrasal Verbs: - "Go to market": To start selling a product or service. - "Market up": To increase the demand or price of a product.
In summary, a "market economy" is an important concept in understanding how goods and services are produced and sold based on consumer demand and competition.