Free market is the term used to describe markets that have limitations on the regulations government bodies can apply. They are limited to the collection of tax and the enforcement of private ownership and contracts.
A controlled market (or regulated market) describes markets in which the government have full potential to regulate goods, services and labor prices. It also determines how they're distributed and how they can be used. These terms are theoretical, and in practice all markets have some form of combination of being both free and controlled by regulations imposed by the government bodies.
Another problem that would cause free markets to not function is the monopolization of certain markets over others. Without government regulations being imposed, markets can gain dominance over their competitors; which would cause the inferior market to close or declare bankruptcy.
A controlled market (or regulated market) describes markets in which the government have full potential to regulate goods, services and labor prices. It also determines how they're distributed and how they can be used. These terms are theoretical, and in practice all markets have some form of combination of being both free and controlled by regulations imposed by the government bodies.
- No markets are truly free markets
- The need to pay taxes
Another problem that would cause free markets to not function is the monopolization of certain markets over others. Without government regulations being imposed, markets can gain dominance over their competitors; which would cause the inferior market to close or declare bankruptcy.