Definition of Free market:
An economic system in which prices are determined by unrestricted competition between privately owned businesses.
The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions. Based on its political and legal rules, a country's free market economy may range between very large or entirely black market.
Where buyers and sellers can make the deals they wish to make without any interference, except by the forces of demand and supply. A stockmarket comes closest to this ideal. See also market economy and open market.
The term “free market” is sometimes used as a synonym for laissez-faire capitalism. When most people discuss the “free market,” they mean an economy with unobstructed competition and only private transactions between buyers and sellers. However, a more inclusive definition should include any voluntary economic activity so long as it is not controlled by coercive central authorities.
How to use Free market in a sentence?
- Noticing that several vendors at the farmers market had the same product at varying prices made me realize how much of a free market it was.
- A key feature of free markets is the absence of coerced (forced) transactions or conditions on transactions.
- A free market is one where voluntary exchange and the laws of supply and demand provide the sole basis for the economic system, without government intervention.
- A free market in broadcasting.
- For the new society, the free market economy appeared almost Utopian in nature, because it provided the necessary goods for its people in the quantities that they needed without having to be told how much to produce at any given time.
- We enjoy the products available on the free market and are able to purchase almost anything we desire at a fair price.
- While no pure free market economies actually exist, and all markets are in some ways constrained, economists who measure the degree of freedom in markets have found a generally positive relationship between free markets and measures of economic well being.
Meaning of Free market & Free market Definition