Free Market Economies

Free Market Economies are a system where all economic decisions are taken by private individuals and businesses.

Advantages of Free Market Economies:

• Prices should be lower as competition between businesses ensures that prices cannot rise too fast. 
• Quality of output should be high, also due to the competition. 

Disadvantages of Free Market Economics:

• Some businesses may monopolize a market and will not have to provide low prices and high quality due to the lack of competition.
• Consumers may not be able to afford to vital products - especially if they cannot provide for themselves, meaning that poverty and inequality are more likely. 

Mixed Market Economies: A system that is partly a free market economy but also has government involvement in economic decisions.