ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government should do whatever it wants
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Business owners and consumers should work together with the government
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Business owners and consumers should be allowed to act without any government involvement
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Everybody should learn French
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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: -Laissez-faire doctrine talks about the least government intervention to no government intervention. The organizations under laissez-faire economies have complete economic freedom–the market functions as per market forces.
Detailed explanation-3: -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.
Detailed explanation-4: -A laissez-faire economy is thus characterized by the free movement of forces of supply and demand, free from any form of intervention by a government, a price-setting monopoly, or any other authority.