ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the government controls the factors of production
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individuals and the government have no say in economic decisions
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government interference in the economy is minimal
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government purchases goods and services from consumers
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Detailed explanation-1: -Laissez-faire economics is a theory that says the government should not intervene in the economy except to protect individuals’ inalienable rights. In other words, let the market do its own thing. If left alone, the laws of supply and demand will efficiently direct the production of goods and services.
Detailed explanation-2: -In free markets, also called laissez-faire economies, markets operate with little or no regulation.
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: -Laissez-Faire in French means ‘let to’ policy of minimum governmental interference in the economic affairs of individuals and society. The British philosopher and economist Adam Smith gave strong support to the policy of laissez-faire in classical economics as it developed in Great Britain.
Detailed explanation-5: -Laissez-faire is the belief that economies and businesses function best when there is no interference by the government.