What is the meaning of Market Economy.
Market Economy... The economic system on which every economic decisions are made on the basis of price mechanism is called market economy or free market economy. Various process of consumption, production, exchange and distribution are determined through pricing process. Private sectors are free to carry out their economic activities. The government neither support nor interfere the economic activities in the market. The government is only responsible to maintain peace and security, law and order & creates favourable environment to carry out economic activities in the country. The economy of US, UK, Australia, Japan etc are the examples of free market economy. Following are the major features of Market Economy: 1. Private property : The fundamental feature of capitalism is the all the productive resources or means of production are owned by private individuals. Private property constitutes the essence of capitalism. 2. Freedom of enterprise: There is freedom of enterpris...