This paper discusses the concept of free market economies. The paper contends that most economists argue that free market
economies are superior to
controlled economies because free markets are more efficient; they encourage individual responsibility for decisions. The profit motive provides the strongest incentive to individuals, and firms to allocate resources for their most productive use and to produce goods and services that the public wants, using the most efficient means of production. The paper explains that controlled economies, contrastingly, suffer from inefficiency as centralized decisions about production and prices create artificial distortions in the economy, and the lack of profit motive creates lethargy.