A free-market economy is controlled by the forces of demand and supply. The government or the central authority does not interfere with the economic activities in the country. The exchange of goods and services is on the basis of a willing seller and willing buyer.
Characteristics of a free-market are
Private ownership of property, including the factors of production.
Freedom of choice: Entrepreneurs are free to start and run a business of their choice. Buyers are free to buy products and services of their preferences.
Profit motivation: Self-gain or profits is the main incentive for engaging in trade
Competition: They are many sellers and a variety of products for consumers to select.
