Free-Market
Definition
A free-market refers to an economic system where prices for goods and services are determined by supply and demand without any government intervention or regulation.
Related terms
Invisible Hand: The concept introduced by economist Adam Smith that suggests individuals pursuing their own self-interest in a free-market economy unintentionally benefit society as a whole.
Competition: The rivalry among sellers in a market to attract customers and increase sales.
Market Equilibrium: The point where the quantity demanded equals the quantity supplied, resulting in stable prices.
"Free-Market" appears in:
Subjects (2)
AP European History
Intro to Political Science
Additional resources (1)
AP Microeconomics - Unit 1 Overview: Basic Economic Concepts
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About Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.