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In a Laissez-faire economy
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- the customers take all the decisions regarding production of all the commodities
- the Government does not interfere in the free functioning of demand and supply forces in the market
- the private-sector takes all the decisions for price-determination of various commodities produced
- the Government controls the allocation of all the factors of production
- the customers take all the decisions regarding production of all the commodities
Correct Option: B
Laissez Faire is an economic theory from the 18th century that is strongly opposed to any government intervention in business affairs. Sometimes it is referred to as “let it be economics.” It is an economic environment in which transactions between private parties are free from tariffs, government subsidies, and enforced monopolies, with only enough government regulations sufficient to protect property rights against theft and aggression.
