WBCS.LIVE practice question

The economic policy of 'Laissez-faire' refers to which of the following?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Strict government control over prices
  2. Minimum government interference in the economy
  3. Complete nationalization of industries
  4. High taxes on imports

Correct answer and explanation

Correct answer: Minimum government interference in the economy

Explanation: āœ… Correct Answer: B) Minimum government interference in the economy šŸ“š Explanation: Laissez-faire is a French term meaning "let do" or "leave it alone." It is a fundamental principle of classical capitalism, suggesting that the market functions best when the government refrains from intervention. This theory argues that competition and the "invisible hand" of the market will naturally lead to the most efficient allocation of resources and economic prosperity.