What does Laissez-Faire imply?

Complete state interference in the affairs of private businesses.

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Opposition to the principle of survival of the fittest.

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Prices of a product depend solely on the government.

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Market prices are allowed to climb and recede naturally.

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Solution

The correct option is D Market prices are allowed to climb and recede naturally.
The term 'Laissez-Faire' comes from the French language and literally means “allow them to do”. In Social Science, this term is used in reference to free markets in which the government will not have any control over the prices of the products. Thus, the market prices will be allowed to climb and recede naturally.

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Similar questions

A market economy is an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

Which of the following does not explain the impact of government policy changes on business and industry?

(a) More demanding customers

(b) Increasing competition

(d) Market orientation

A government report on farmers’ problems says that small and marginal farmers cannot get good prices from the market. It recommends that the government should intervene to ensure a better price but only for small and marginal farmers. Is this recommendation consistent with the principle of equality?

When the market is allowed to operate without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as:

Q. Match the pairs.

	Group "A"		Group "B"
(1)	Microeconomics	(a)	Independent
(2)	Ceteris Paribus	(b)	No government intervention
(3)	Laissez Faire Policy	(c)	Individualistic
(4)	Partial Equilibrium	(d)	Other things remaining equal
(5)	Market Mechanism	(e)	Price determination

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