Explanation: Free-market economy is the type of economic system in which everyone has the right to the extent that he wants to invest in an area he wants under certain rules regulated by law. This implies the right to private property, capital and resources that are not owned by the community. Also there are various regulations and contracts that regulate and ensure fair games on the free market. The government's influence is insignificant or not at all. This type of economy carries with it the risk because it is necessary to predict where and how to invest, which is not always safe and can lead to bankruptcy or to extraordinary profit.
<em>"Britain acknowledged the independence of the United States"</em> is a political effect. This meant, that the British Empire would not have any interference in the public policy of the territories of the newly formed country.
<em>"Countries that participated in war agreed to repay debts to one another"</em> is an economic effect. The monetary compensation for the effects of war would bring affect the budget of the newly formed country. This was an important issue, as the Continental Congress had issues collecting taxes from the states during the war and had to issue bonds. It would take time for the country to recover economically.
<em>"The war opened up discussion about racial equality"</em> is a political effect. This discussion was the first in a series of events that would lead up to the Civil War between the Union and the Confederate States".
