In a laissez-faire economy,
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The customers take all the decisions regarding production of all the commodities
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The Government does not interfere in the free functioning of demand and supply forces in the market.
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The private sector takes all the decisions for price-determination of various commodities produced
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The Government controls the allocation of all the factors of production.
Reveal answer
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B
Correct answer
Explanation
Laissez-faire is an economic philosophy advocating minimal government interference in market transactions. The term translates to 'let do' in French, meaning allowing demand and supply forces to operate freely without regulation. This contrasts with planned economies where governments control production and pricing decisions.