Definition: Free Market System

A free market consists of a marketplace that is free of government intervention.   In a free enterprise market system, the government control is limited to the collection of taxes and the enforcement of contracts.  In a free market system, the state or government does not regulate how goods and services are used.  Instead, the principles of supply and demand economics take over.  Disciples and advocates of the free market system believe that privately owned businesses and enterprise perform better and more efficiently than state owned enterprises.

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