Asked by Janet Miller on May 08, 2024
Verified
Explain the term "laissez faire capitalism."
Laissez Faire Capitalism
An economic system where private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.
- Explain the concept of laissez-faire capitalism and its significance within a market economy.
Verified Answer
AC
Argenis ColonMay 09, 2024
Final Answer :
This is a hypothetical economic system in which the government's economic role is limited to protecting private property and establishing a legal environment appropriate to the operation of markets in which only mutually agreeable transactions would take place between buyers and sellers. It is sometimes referred to as "pure capitalism."
Learning Objectives
- Explain the concept of laissez-faire capitalism and its significance within a market economy.