• In a market economy, most economic decisions are made through voluntary transactions in accordance with the laws of supply and demand.
  • The market economy gives entrepreneurs the freedom to pursue profits by creating products that are more valuable than the resources they use and can fail and go out of business if they don’t.
  • Economists generally agree that a market economy produces the best economic results, but disagree on the exact balance between markets and central planning that is best for a country’s long-term welfare.