who controls the factors of production in a free market economy
Market economy Market economies do not logically presuppose the existence of private ownership of the means of production. A market economy can and often does include various types of cooperatives, collectives, or autonomous state agencies that acquire and exchange capital goods in capital markets. These all utilize a market-determined free price system to allocate capital goods and labor.[3] In addition, there are many variations of market socialism, some of which involve employee-owned enterprises based on self-management; as well as models that involve the combination of public ownership of the means of production with factor markets.[7]
Supply-side economics Supply-side economics is a macroeconomic theory that argues economic growth can be most effectively created by lowering taxes and decreasing regulation.[1][2] According to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices and employment will increase.[3] It was started by economist Robert Mundell during the Ronald Reagan administration.