Market economy refers to a system where the prices of goods and services are set by supply and demand. The value of information, goods, and services is determined through free trade. In 2008, free trade is often regulated by governments, resulting in a mixed economy rather than a pure free market system. In this type of economic system the government is the facilitator only.
A market economy is the opposite of a command or centrally planned economy. In a command system, the government determines what goods are sold, how much of them, and what they will cost. This single actor is replaced by many in a market system, where the price of a good is determined by both the supply and demand for it.
It's a market.
A market economy is not synonymous with capitalism; free markets can exist in communist systems and other systems that do not have capitalism's defining characteristics. In capitalism, labor and economy are important to the whole part of the free market system.
-people work harder -a great variety of consumers goods become avalable -freedome to buy or reject products -price baced on what the population can afford