ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capitalist economy is the suitable other name for market economy because in the capitalist kind of economics, the price is determined by the market forces i.e. by the market forces of demand and supply and no government intervention exists. Was this answer helpful?

Detailed explanation-2: -One of the most important characteristics of a market economy, also called a free enterprise economy, is the role of a limited government. Most economic decisions are made by buyers and sellers, not the government.

Detailed explanation-3: -What are two other words for market economy? Free Enterprise, Capitalism.

Detailed explanation-4: -In a capitalist economy, the production of all the goods and services is dependent on the demand and supply in the market that is also known as a market economy. It is different from the central planning system that is also known as a command economy or a planned economy.

Detailed explanation-5: -A market economy is an economic system in which individuals, rather than the state, own most of the resources. This includes land, labor, and capital. In a market economy, individuals control the use and price of these resources through voluntary decisions made in the marketplace.