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Market Economy

 

A market economy, otherwise known as capitalism, is an economic system in which the means of production are privately owned and controlled by individuals and entities in competition with one another. The products, amounts, costs, and prices are determined based on supply and demand.

A Market Economy or Capitalism is the opposite of a Command or Planned Economy.

 

Example:

The United States of America (see Americanism) is an example of a nation that was designed to operate based on a market economy.

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