<P> Free - market economy refers to an economic system where prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy . It typically entails support for highly competitive markets, private ownership of productive enterprises . Laissez - faire is a more extensive form of free - market economy where the role of the state is limited to protecting property rights . </P> <P> Welfare capitalism refers to a capitalist economy that includes public policies favoring extensive provisions for social welfare services . The economic mechanism involves a free market and the predominance of privately owned enterprises in the economy, but public provision of universal welfare services aimed at enhancing individual autonomy and maximizing equality . Examples of contemporary welfare capitalism include the Nordic model of capitalism predominant in Northern Europe . </P> <P> Anglo - Saxon capitalism refers to the form of capitalism predominant in Anglophone countries and typified by the economy of the United States . It is contrasted with European models of capitalism such as the continental Social market model and the Nordic model . Anglo - Saxon capitalism refers to a macroeconomic policy regime and capital market structure common to the Anglophone economies . Among these characteristics are low rates of taxation, more open financial markets, lower labor market protections, and a less generous welfare state eschewing collective bargaining schemes found in the continental and northern European models of capitalism . </P> <P> The East Asian model of capitalism involves a strong role for state investment, and in some instances involves state - owned enterprises . The state takes an active role in promoting economic development through subsidies, the facilitation of "national champions", and an export - based model of growth . The actual practice of this model varies by country . This designation has been applied to the economies of Singapore, Japan, Taiwan, South Korea and the People's Republic of China . </P>

Who owns the factors of production in a free market economy