An economy in which people exchange goods and services in a market is called a

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A market economy is an economic system in which decisions about production, price, and other economic factors are determined by supply and demand. In this system, individuals and businesses freely exchange goods and services through markets without direct governmental intervention. Actors in a market economy seek to maximize their own self-interest by producing and selling goods and services that they expect will earn them a profit. Market economies are sometimes also known as capitalist economies, and are distinct from centrally planned or command economies in which the government controls most economic activity. A socialist economy is a type of economic system in which the government owns and controls most or all means of production and distribution, while a market economy relies on private ownership and market forces to guide economic activity.

An Economy in Which People Exchange Goods and Services in a Market