Definition, Meaning & Synonyms

free-market-economics

Noun

ˈfriː ˈmɑːrkɪt ɪˈkɒnəmɪks

Definition

A system in which prices for goods and services are determined by open competition between privately owned businesses.

Examples

In free-market economics, prices are set by the forces of supply and demand.
Countries adopting free-market economics often experience faster economic growth.
Critics argue that free-market economics can lead to income inequality.

Meaning

Free-market economics refers to an economic system where the decisions regarding investment, production, and distribution are driven by the supply and demand of goods and services, rather than by government control.