What is a free market economy?

World Economic Systems Questions



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What is a free market economy?

A free market economy is an economic system where the production, distribution, and pricing of goods and services are determined by the interactions of individuals and businesses in the marketplace, without significant government intervention or control. In a free market economy, individuals and businesses have the freedom to make their own economic decisions, such as what to produce, how much to produce, and at what price to sell. The forces of supply and demand play a crucial role in determining prices and allocating resources in a free market economy.