ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The more government intervention the better.
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The economy and society will tend to do better with less or no government interference.
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Technology is the key to growth.
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None of the answers are correct.
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Detailed explanation-1: -Laissez-faire is a policy of minimum governmental interference in the economic affairs of individuals and society. The doctrine of laissez-faire is usually associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778. The term laissez-faire means, in French, “allow to do.”
Detailed explanation-2: -The driving principle behind laissez-faire, a French term that translates to “leave alone” (literally, “let you do"), is that the less the government is involved in the economy, the better off business will be, and by extension, society as a whole.
Detailed explanation-3: -Laissez-faire is the belief that economies and businesses function best when there is no interference by the government.
Detailed explanation-4: -Laissez faire works best for economic growth because it provides individuals with the greatest incentive to create wealth.
Detailed explanation-5: -Capitalist economy(where capital goods are owned by private individuals) follows a ‘Laissez-faire’ economy.