Free Market Economy §

Group: 4 #group-4

Relations §

• Market Prices: Prices in a free market economy are determined by the forces of supply and demand.
• Private Property Rights: Private property rights are a fundamental aspect of a free market economy.
• Entrepreneurship: Entrepreneurship and innovation are encouraged in a free market economy.
• Profit Motive: The profit motive is a key characteristic of free market economies, where businesses aim to maximize profits.
• Profit Motive: The pursuit of profit is a driving force in a free market economy.
• Capitalism: A free market economy is based on the principles of capitalism.
• Capitalism: Capitalism is an economic system based on a free market economy, where prices and production are determined by supply and demand with little or no government intervention.
• Laissez-faire: Laissez-faire is a policy of minimal government intervention in a free market economy.
• Economic Freedom: A free market economy promotes economic freedom and individual liberty.
• Capitalism: Capitalism is an economic system based on a free market economy, where prices and production are determined by supply and demand.
• Income Inequality: Income inequality can be a concern in a free market economy due to unequal distribution of wealth.
• Competition: Competition among firms is a key characteristic of a free market economy.
• Monopolies: Monopolies can distort competition and pricing in a free market economy.
• Limited Government Intervention: A free market economy operates with minimal government intervention and regulation.
• Market Failures: Market failures, such as externalities and monopolies, can occur in a free market economy.
• Globalization: Globalization and free trade are often associated with a free market economy.
• Privatization: Privatization involves transferring ownership of state-owned enterprises to the private sector in a free market economy.
• Externalities: Externalities, such as pollution, are not accounted for in a free market economy without government intervention.
• Voluntary Exchange: Voluntary exchange of goods and services is a key principle of a free market economy.
• Supply and Demand: Supply and demand are the driving forces that determine prices and production in a free market economy.
• Deregulation: Deregulation is the process of removing government regulations in a free market economy.
• Invisible Hand: The ‘invisible hand’ of the market is a concept that describes the self-regulating nature of a free market economy.