id author title date pages extension mime words sentences flesch summary cache txt en-wikipedia-org-3492 Market economy - Wikipedia .html text/html 6259 1062 45 A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. A capitalist free-market economy is an economic system where prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy. The economic mechanism involves a free market and the predominance of privately owned enterprises in the economy, but public provision of universal welfare services aimed at enhancing individual autonomy and maximizing equality. Social market economy[edit] One difference from the free market economy is that the state is not passive, but instead takes active regulatory measures.[16] The social policy objectives include employment, housing and education policies, as well as a socio-politically motivated balancing of the distribution of income growth. ./cache/en-wikipedia-org-3492.html ./txt/en-wikipedia-org-3492.txt