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Market Economy

An economic system where supply and demand dictate the production and pricing of goods and services.

Supply and Demand

The relationship between the quantity of a product available and the desire of consumers to purchase it.

Planned Economy

An economic system where the government makes decisions about production and pricing.

Limited Government Intervention

A characteristic of market economies that allows businesses to operate competitively with minimal government influence.

Innovation in Market Economies

The development of new products or processes that enhance efficiency and consumer choice.

Consumer Freedom

The ability of consumers in a market economy to choose products based on their preferences.

Competitive Businesses

Companies that strive to improve their products and services to gain an advantage in the market.

Variety of Goods

The wide range of different products available to consumers in a market economy.