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Centrally Planned Economies And Free Market Economies Economics Essay
Free markets are the economic systems in which individuals, rather than government, make the majority of decisions regarding economic activities and transactions. Free market economy is an economy where all markets; it is not controlled by parties other than the players on the market. In its purest form, the government plays a neutral role in the government and the law on economic activity is not limited and do not actively promote (such as industry regulators do not allow its own economic interests and provide help companies more reason to protect them from market pressures, internal / external). As an economy under the most extreme form of it does not exist in developed economies, however, efforts to liberalize the economy or make it "free-er" paper tries to limit the role of government manner.
The theory that a good free market, the property is voluntarily exchanged at a price fixed by mutual consent of sellers and buyers. By definition, buyers and sellers do not coerce each other, in the sense that they own the other without the use of force, threat of physical force, or fraud, and they don ' were not constrained by a third party (such as government transfer payments) and their participation in trade simply because they accept and believe in what they get is better than or as much as what they give to above. The price is the result of a solid buying decision as described by the theory of supply and demand.
Unlike the free market strong market controlled or market regulation, government, directly or indirectly regulate prices or supplies, which are theoretically free market caused the market is less efficient. Where there is government intervention, the market is a mixed economy.
Market the price of a good service to the consumer demand for producers to communicate and thus to guide the allocation of resources for consumers and investors, satisfaction. In a free market, prices are the

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