Free Market Economics
Definition
Free market economics is an economic system based on supply and demand with little or no government control. Prices for goods and services are set freely by consent between vendors and consumers.
Related terms
Capitalism: An economic system characterized by private ownership where production, distribution, and prices are determined by competition in a free market.
Supply & Demand: Fundamental concept of economics that states that at equilibrium price, quantity supplied equals quantity demanded.
Competition: In economics, competition occurs when businesses vie for the same resources or customers.
"Free Market Economics" appears in:
Subjects (1)
AP European History
Study guides (1)
AP World History: Modern - 9.4 Economics in the Global Age
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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.