A market economy is an economic system in which the production and distribution of goods and services are determined by the laws of supply and demand. It relies on competition, private ownership, and individual decision-making.
Related terms
Industrial Revolution: The period of rapid industrialization that transformed economies from agrarian to manufacturing-based, greatly expanding trade opportunities in the North.
Capitalism: An economic system based on private ownership, where individuals or businesses operate for profit.
Entrepreneurship: The act of creating and running a business venture, taking risks in pursuit of potential profits.