Question

Why is the term free market often a misnomer?

Select the best answer from the choices provided.
Because you have to pay for the goods and service you want.
Because the term often refers to trade agreements which contain many regulations.
Because Adam Smith believed the government should control the economy.
Because a command economy is free of government interventions.
NextReset

Answer 1

The best answer is no.2 "Because the term often refers to trade agreements which contain many regulations".

Misnomers are names or words that suggest meaning known to be wrong. They are often still convenient and originate from an earlier time. The term "free market" refers to trading on an open market. The earliest markets were unregulated but the global market (and/or most markets) today are highly regulated by government trade agreements and taxation so the term "free market" is a misnomer.