Which of the following is a feature of a Laissez-Faire economy?

The customers take all the decisions regarding production of all the commodities

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The Government doest 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

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Solution

The correct option is C The Government doest not interfere in the free functioning of demand and supply forces in the market
In a Laissez-Faire economy(free economy) the government does not interfere in the market mechanism of an economy and allows the free play of demand and supply forces .Thus the market works accordingly the two market forces.

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