FREE MARKET Meaning and
Definition
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A free market is an economic system characterized by minimal government intervention and regulation, where the forces of supply and demand determine prices and the allocation of resources. In a free market, individuals and businesses have the freedom to engage in economic activities without undue interference from the government or other external entities.
Key features of a free market include voluntary exchange, private ownership of property, competition, and profit motive. These elements promote efficiency and productivity in the economy. In a free market, buyers and sellers freely negotiate prices and the exchange of goods and services, allowing for self-regulation through the market mechanism.
The absence of government intervention in a free market distinguishes it from other economic systems, such as socialism or centrally planned economies. Instead, the market forces of supply and demand guide economic decisions and the distribution of resources. This allows individuals to make choices based on their own needs, preferences, and the resources they possess.
However, a free market does not imply an absence of laws or regulations altogether. Basic legal frameworks, such as contract enforcement and protection of property rights, are necessary to ensure fair and orderly economic transactions. Nevertheless, the overall goal of a free market is to promote economic freedom, competition, innovation, and efficient resource allocation, ultimately leading to economic growth and increased standards of living.
Common Misspellings for FREE MARKET
- freemarket
- fremarket
- dree market
- cree market
- vree market
- tree market
- rree market
- feee market
- fdee market
- ffee market
- ftee market
- f5ee market
- f4ee market
- frwe market
- frse market
- frde market
- frre market
- fr4e market
- fr3e market
- frew market
Etymology of FREE MARKET
The etymology of the phrase "free market" can be traced back to the combination of two words: "free" and "market".
The word "free" derives from the Old English word "freo" or "freoðu", which means "exempt from, not in bondage, having liberty or independence". It is related to the Old Saxon word "fri", the Old High German word "fri", and the German word "frei". These words all share the meaning of "free" or "freedom".
The word "market" originates from the Latin word "mercatum" or "mercari", meaning "to trade, buy or sell". It has roots in the Latin word "merx" or "mercis", which refers to merchandise or goods. In Latin, "mercatus" signifies a "trading center" or "marketplace".
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