Unlike other types of economies, a free market economy increases the efficiency of doing business. The government is limited in how it regulates transactions within a free market economy and most rules it enacts are to protect consumers, the environment, market participants, and national security.

 

The limited role of government promotes increased efficiency and increased competition. With the existence of free competition, businesses tend to do whatever is necessary to lower its costs and to improve its quality in order to improve their market share, giving consumers more choice and access to better products and services at lower prices.

 

On the other hand, free and competitive markets in the modern world demands checks and balances of all three branches of the government, judicial independence, human rights and transparency in national policy making for its mere existence - strengthening the core values of a true democracy.