Question

    An economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs, and subsidies, is known as?

    A Mixed Economy Correct Answer Incorrect Answer
    B Laissez-faire Correct Answer Incorrect Answer
    C Oligopoly Correct Answer Incorrect Answer
    D Command free economic system Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Laissez faire is the belief that economies and businesses function best when there is no interference by the government. It comes from the French, meaning to leave alone or to allow to do. It is one of the guiding principles of capitalism and a free market economy.  

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