PURE MARKET ECONOMY: An economy in which markets answer all allocation decisions and answers all three questions of allocation. There is no government. Markets do it all. This is a theoretical ideal or extreme that does not exist in the real world. As a theoretical ideal, though, it does provide a benchmark that can be used for comparison with real world economic systems. See also | economy | economic system | market | allocation | three questions of allocation | pure market economy | mixed economy | capitalism | free enterprise | laissez faire | command economy | pure command economy | communism | socialism |
