Free market system: meaning, definitions and examples
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free market system
[ fri ˈmɑːrkɪt ˈsɪstəm ]
economic system
A free market system is an economic system in which prices are determined by unrestricted competition between privately owned businesses. In this system, the forces of supply and demand set the prices of goods and services. Government intervention is minimal, allowing for maximum economic freedom.
Synonyms
capitalist system, laissez-faire economy, market economy
Examples of usage
- The United States is often cited as an example of a country with a free market system.
- In a free market system, individuals have the freedom to start businesses and compete with each other.
Translations
Translations of the word "free market system" in other languages:
🇵🇹 sistema de mercado livre
🇮🇳 मुक्त बाजार प्रणाली
🇩🇪 freies Marktsystem
🇮🇩 sistem pasar bebas
🇺🇦 система вільного ринку
🇵🇱 system wolnego rynku
🇯🇵 自由市場制度
🇫🇷 système de marché libre
🇪🇸 sistema de mercado libre
🇹🇷 serbest piyasa sistemi
🇰🇷 자유 시장 시스템
🇸🇦 نظام السوق الحرة
🇨🇿 systém volného trhu
🇸🇰 systém voľného trhu
🇨🇳 自由市场体系
🇸🇮 sistem prostega trga
🇮🇸 frjáls markaðskerfi
🇰🇿 еркін нарық жүйесі
🇬🇪 თავისუფალი ბაზრის სისტემა
🇦🇿 sərbəst bazar sistemi
🇲🇽 sistema de mercado libre
Word origin
The concept of a free market system dates back to the classical economists such as Adam Smith, who argued that individuals pursuing their self-interest would unintentionally promote the social good through the invisible hand of the market. The modern understanding of a free market system has evolved to emphasize competition, efficiency, and innovation.