What term describes trade conducted with no government interference?

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Study for the EPF Supply and Demand Test. Use flashcards and multiple choice questions with hints and explanations. Prepare confidently with key concepts and questions to ace your exam!

The term that describes trade conducted with no government interference is free trade. Free trade allows goods and services to move across borders without tariffs, quotas, or other restrictions imposed by the government. This concept is based on the belief that economies function more efficiently and benefit consumers when businesses can freely exchange goods and services in a competitive market without unnecessary regulation.

In free trade environments, businesses are encouraged to produce and sell based on supply and demand dynamics, leading to lower prices and more choices for consumers. By removing barriers, countries can specialize in the production of goods and services they are most efficient at producing, resulting in an overall increase in economic welfare.

Other terms listed refer to various frameworks in trade practices but do not encapsulate the idea of minimal to no government involvement in commerce, which is the essence of free trade.

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