footwork
skillful dealing or maneuvering; tactics

form, formed, forming, forms
procedure (a manner of proceeding; a way of performing or effecting something) as determined or administrated by regulation or custom; the shape and structure of an object

Free Market Economy
Scottish philosopher Adam Smith, who first set forth the essential economic principles that undergird this system. In his classic An Inquiry into the Nature and Causes of the Wealth of Nations.(1776), Smith sought to show how it was possible to pursue private gain in ways that would further not just the interests of the individual but those of society as a whole. Society's interests are met by maximum production of the things that people want.
   In a now.famous phrase, Smith said that the combination of self interest, private property and competition among sellers in markets will lead producers "as by an invisible hand" to an end that they did not intend, namely, the well being of society. English philosopher Thomas Hobbes believed similarly; that society exists for the sake of its members as individuals and should only be judged according to criteria.(standards, rules).established by them, We the People as individuals.

A Free Market Economy is an economic system in which individuals, rather than government, make the majority of decisions regarding economic activities and transactions. Individuals are free to make economic decisions concerning their employment, how to use or accumulate capital, what expenditures to make, and whether to use their resources now or to save them for later consumption. The principles underlying.free-market economies are based on 'non-intervention by government'.economics and can be traced to the 18th century British economist Adam Smith. According to Smith, individuals acting in their own economic self-interest will maximize the economic situation of society as a whole, as if guided by an "invisible hand." In a free-market economy the government's function is limited to providing what are known as "public goods" and performing a regulatory role (*) in certain situations.
    Public goods, which include defense, law and order, and education, have two characteristics: consumption by one individual does not reduce the amount of the good left for others; and the benefits that an individual receives do not depend on that person's contribution. An example is a lighthouse. One individual's use of light provided by a lighthouse does not reduce the ability of others to use it. In addition, the lighthouse owner cannot restrict individuals from using the light. The latter illustrates the "free-rider" phenomenon of public goods, both those who helped pay for the lighthouse and those who did not will enjoy the same amount of light. The "free-rider" problem can be eliminated if governments collect taxes and then provide public goods.
    Government's role in a free-market economy also includes protecting private property, enforcing contracts, and regulating certain economic activities. Governments generally regulate "natural monopolies" such as utilities or rail service. These industries require such a large investment that it would not be profitable to have more than one provider. Regulation is used in place of competition to prevent these monopolies from making excessive profits. Governments may also restrict economic freedom for the sake of protecting individual rights. Examples include laws that restrict child labor, prohibit toxic emissions, or forbid the sale of unsafe goods.
    Proponents of free-market economies believe they provide a number of advantages. They see free-market economies as encouraging individual responsibility for decisions and they believe that.economic freedom is essential to political freedom. In addition, many people believe that free markets are more efficient in economic terms. Free markets provide incentives both to individuals to allocate resources, such as labor and capital, among the most productive uses, and to firms to produce goods and services that the public wants, using the most efficient means of production.
   A Free-market economy needs also to be a compassionate one, ensuring basic social values, such as alleviating poverty, while at the same time checking anything threatening the survival of political freedom. compare 'managed economy'.comprised with Microsoft® Encarta® Encyclopedia 99. © 1993-1998 Microsoft Corporation. All rights reserved.

.
I n d e x  o f  s i t e
.