Which of the following is an economic justification for a policy of laissez-faire?

Question

Quizplus · Accepted Answer

Laissez-faire is a policy that advocates for minimal government intervention in the economy. One of the main justifications for this policy is the belief in the efficiency of the market mechanism. Proponents of laissez-faire argue that, in a competitive market, self-interested individuals will make rational decisions that will lead to an optimal allocation of resources and maximum economic efficiency. This argument is based on the assumption that markets are perfectly competitive and there are no market failures such as externalities, public goods, or free-rider problems. Therefore, the economic justification for a policy of laissez-faire is the efficiency of the market mechanism.

Which of the Following Is an Economic Justification for a Policy