market economy

An economy in which the greater part of production, distribution , and exchange is controlled by individuals and privately owned corporations rather than by the government, and in which government interference in the market is minimal. Although a total market economy is probably only theoretically possible (because it would exclude taxation and regulation of any kind), capitalist economies approximate it and socialist economies are antithetical to it ( see capitalism and socialism ). Market economies are also called free economies, free markets , or free enterprise systems.