First off, the definition of a Free-Market economy is; an economy which is based on supply and demand that also has very little to almost no government control at all. This allows buyers and sellers to trade or make certain agreements without having to involve the government or any type of regulation.
As you can see by the definition, Free-Market economies are based on many individual decisions instead of just one central decision. People who buy and sell amongst each other can set their own agreements and set prices that help coordinate things.
After taking a look at the picture above for a little bit, you may still be confused about how everything works in the Free-Market economy. With this type of economy, it basically allows companies to make every choice there is possible without having to worry about the government interfering with their decisions. For example, Apple, one of the largest companies in the world, uses the Free-Market economy to their advantage very well. They are able to take the money from their savers and investors to create new products, like the iPad that came out on Apr.3 of 2010. Since that was a big success, savers and investors got a lot more money back in return and also allowed Apple to make a big profit. Speaking of big success, companies like Apple, have to first analyze what their product is and how it would sell and if it would make a large enough profit to the savers and investors while still making a profit for the company. Companies are free to set their own prices, make trades, hire people and set their own salaries, earn as much profit as they desire, and basically anything from the ground up.
With the graph above, you can see how the countries start to change their view about the Free-Market Economy over the years. Most will agree that Free-Market is the way to go because of the freedom companies have with their decisions, but then there's people that do not like to agree with Free-Market economies because there's too many people that could be involved and some people like having that one central direction of say rather than a whole bunch of people contributing as it can result in an unstable and unsuccessful company.
In my opinion, I find that a Free-Market Economy is a great economy because it allows companies to make their own decisions freely and do things their own way to maximize their profits and production. Here in Canada, we have a Free-Market Economy that has great standing and works very well for the companies to make their own choices, invest in profit shares, set prices and many more.
A Demonstration of a Free Market Economy
Works Cited
"A Demonstration of a Free Market Economy." YouTube.
YouTube, n.d. Web. <https://www.youtube.com/watchv=ReEUKDZBQUQ> 14 Oct. 2014.
"Dr. Lameiro's Characteristics of a Free
Market | Gerard Lameiro." Dr. Lameiro's Characteristics of a Free
Market | Gerard Lameiro. N.p., n.d. Web. <http://gerardlameiro.com/thoughts/characteristics-of-a-free-market
>14 Oct. 2014.
"Free Market Definition | Investopedia." Investopedia.
N.p., n.d. Web. <http://www.investopedia.com/terms/f/freemarket.asp
>13 Oct. 2014.
"IPad." Wikipedia. Wikimedia
Foundation, 10 Nov. 2014. Web. <http://en.wikipedia.org/wiki/IPad
>11 Oct. 2014.
"What Is a Free Market Economy?" Free
Market Economy. N.p., n.d. Web. <http://freemarketeconomy.net/what-is-a-free-market-economy/>14 Oct. 2014.
