free-market economy
A system in which the prices for goods and services are set freely by consent between vendors and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.
A free-market economy is a system in which decisions about production, distribution, and prices are made by individuals and businesses rather than by the government. In a free-market economy, the government’s role is generally limited to protecting property rights, enforcing contracts, and ensuring fair competition.
In a free-market economy, resources are allocated through the interaction of supply and demand, and prices are determined by market forces. Producers are incentivized to meet consumer demand and offer goods and services at competitive prices, while consumers are free to make choices based on their preferences and budget.
Advocates of free-market economies argue that they foster innovation, increase efficiency, and create more opportunities for individuals to achieve economic success. However, critics argue that free-market economies can lead to income inequality and a lack of access to basic goods and services for some individuals. In practice, most modern economies have a mix of free-market and government-controlled elements.
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