ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A market economy is a system where private individuals and businesses operate the economy on the basis of demand and supply without much state intervention. It increases economic efficiency and provides more independence to both businesses and customers, in turn promoting economic growth.

Detailed explanation-2: -A market economy is a type of economic system where supply and demand regulate the economy, rather than government intervention.

Detailed explanation-3: -A market economy is an economic system where two forces, known as supply and demand, direct the production of goods and services. Market economies are not controlled by a central authority (like a government) and are instead based on voluntary exchange.

Detailed explanation-4: -Market economies work using the forces of supply and demand to determine the appropriate prices and quantities for most goods and services in the economy.

Detailed explanation-5: -A capitalist economy is a type of free market economy; the profit motive drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market share to competitors.