List three examples of government actions that promote the free market

1) Reduction of taxes

2) Incentives to foreign investments

3) Reduction of tariff to imported goods

Explanation:

1) With a reduction of taxes is more likely to more companies to be created promoving the competition needed for free economy development. Also, the companies will have more capacity of investments improving their process and production what eventually lead to more options for the consumers.

2) More money driving to the economy more business and competition will surge. Through incentives to foreigners to invest in the local economy, the government can reach the desired state of economic growth that reinforce the free market process.

3) Free markets mean also free competition, this implied local but also international competition, allowing free international trade contribute to the process of free markets.

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