What do you understand by free market versus State intervention
Dear student,
free market is a type of economic system that is controlled by the market forces of supply and demand, as opposed to one regulated by government controls (government intervention).
It is opposite on the spectrum to a command economy, where a central government agency plans the factors of production and use of resources and sets prices. In a free market, companies and resources are owned by private individuals or entities who are free to trade contracts with each other.
Regards
free market is a type of economic system that is controlled by the market forces of supply and demand, as opposed to one regulated by government controls (government intervention).
It is opposite on the spectrum to a command economy, where a central government agency plans the factors of production and use of resources and sets prices. In a free market, companies and resources are owned by private individuals or entities who are free to trade contracts with each other.
Regards