Market Economy (Capitalism) An economic system in which individuals own and operate the majority of businesses that provide goods and services Derived from Adam Smith's laissez-faire capitalism in which a societys best interests are served by individuals pursuing their own self-interest(the invisible hand)Market Economy (Capitalism) ◼ An economic system in which individuals own and operate the majority of businesses that provide goods and services ◼ Derived from Adam Smith’ s laissez-faire capitalism in which a society’s best interests are served by individuals pursuing their own self-interest (the invisible hand)