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New page: A '''free market''' is a term in economics that refers to an economy operating with little to no interference on the part of a government. This type of economic philosophy is the backb...
A '''free market''' is a term in [[economics]] that refers to an economy operating with little to no interference on the part of a government. This type of economic philosophy is the backbone to the system of [[capitalism]], and is sometimes referred to by the [[French]] phrase "laissez-faire," meaning to "let be." Free markets are largely dependent on the process of [[supply and demand]], where prices are determined by the amount of the product in the market, as well as the number of consumers who wish to purchase that product. Advocates of free markets say that the the market will punish business whose practices are not beneficial, as consumers will take their business elsewhere. Opposite of a free market is a [[command system]], in which the government regulates all businesses for the theoretical central planning of the economy, although this has been shown to have negative effects.