ECONOMICS
ECONOMIC SYSTEMS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The government should do whatever it wants
|
|
|
Business owners and consumers should work together with the government
|
|
|
Business owners and consumers should be allowed to act without any government involvement
|
|
|
Everybody should learn French
|
Detailed explanation-1: -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-2: -Often, laissez-faire capitalism is also referred to as free market capitalism or market capitalism. Simply put, laissez-faire translates to “leave us alone” meaning that the government should remain out of the economy and instead allow individuals to freely carry out their own economic affairs.
Detailed explanation-3: -In a Laissez-Faire economy(free economy) the government does not interfere in the market mechanism of an economy and allows the free play of demand and supply forces .
Detailed explanation-4: -Which of the following is an economic justification for a policy of laissez-faire? The efficiency of the market mechanism. The problem with public goods is that those who do not pay receive: The same amount of the good as those who pay.