BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Laissez faire is the doctrine that government generally should not interfere in the marketplace.

Detailed explanation-2: -Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.

Detailed explanation-3: -Laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention. The theory of laissez-faire was developed by the French Physiocrats during the 18th century. Laissez-faire advocates that economic success is inhibited when governments are involved in business and markets.

Detailed explanation-4: -Any Government intervention of the first kind, however, affects the dynamic interaction of supply and demand in markets and thereby determination of ‘equilibrium’ market prices. When the price is too high, there is an excessive amount of the product for sale compared to what people want.