Q.Write a short note on: Laissez Faire

Laissez faire is the classical principle of government non-interference, letting the free market and the price mechanism run the economy.

Explanation

Laissez faire is a French phrase that means "allow to do" or "leave alone". It is the doctrine of the classical economists, who believed that the government should not interfere in economic affairs and should confine itself to basic functions like defence, justice and law and order. According to this principle, the economy works best when individuals are free to pursue their own economic interests and the forces of demand and supply (the price mechanism) are left free to allocate resources. It formed one of the main assumptions of the classical theory …