Definition, Meaning & Synonyms

free-market

Noun

/friː ˈmɑːrkɪt/

Definition

A free-market is an economic system where prices for goods and services are determined by open competition among businesses, without governmental control or regulation.

Examples

The principles of free-market capitalism encourage entrepreneurship.
In a free-market society, consumers have the power to influence the types of products available.
Many economists argue that a free-market system leads to greater innovation.

Meaning

In a free-market economy, the laws of supply and demand guide production, distribution, and consumption decisions, allowing consumers to choose freely from a variety of choices.