market economy

from The American Heritage® Dictionary of the English Language, 5th Edition.

• noun An economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority; a capitalistic economy.

from Wiktionary, Creative Commons Attribution/Share-Alike License.

• noun An economy in which goods and services are exchanged in a free market, as opposed to a state-controlled or socialist economy; a capitalistic economy.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

• noun an economy that relies chiefly on market forces to allocate goods and resources and to determine prices