An economic system. Market economy is a product of the development of commodity economy, formed and developed at a certain stage of development of commodity economy. When the commodity production and commodity exchange has developed to a certain degree and the market mechanisms can regulate the productive and operative activity of enterprises, making the market play a decisive role in the allocation of resources, the commodity economy has developed into market economy. Commodity economy and market economy are closely related. Although commodity economy is not tantamount to the market economy, market economy is necessarily a commodity economy, a commodity economy in which the market can play a regulatory role and thus determine the allocation of resources. On the other hand, there is a difference between the two. Commodity economy is a concept opposite to the natural economy. The exchange of commodities according to their values reflects the indirect social nature of labor, i.e., the relation between individual labor and social labor of men. Market economy is the concept opposite to planned economy, i.e., an economic system that allocates resources by means of mandatory plans and regulates social resources by means of administrative orders. It is characterized by the allocation of the factors of production and the regulation of income distribution through the market…
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