Laissez-faire is an economic:
A) theorem because it is based on deductive analysis of a model that is based on assumptions.
B) theorem because it is the logical conclusion of a model with carefully stated relationships among variables.
C) precept because it is based on a model and normative judgments about the relevance of the model to the real world.
D) precept because it is the logical conclusion of a model with widely held assumptions.

Question

Quizplus · Accepted Answer

Laissez-faire is considered a precept because it involves normative judgments about how the economy should operate, based on a model that assumes minimal government intervention is beneficial.

Laissez-Faire Is an Economic