Laissez Faire


DEFINITION of 'Laissez Faire'

An economic theory from the 18th century that is strongly opposed to any government intervention in business affairs.

Sometimes referred to as "let it be economics."


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BREAKING DOWN 'Laissez Faire'

People who support a laissez faire system are against minimum wages, duties, and any other trade restrictions.

Laissez faire is French for "leave alone."

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  1. How does adverse selection contribute to market failure?

    Adverse selection is perhaps the most academically cited example of market failure in a laissez-faire economy. The problem ... Read Full Answer >>
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    The standard spectrum of economic systems places laissez-faire capitalism at one extreme and a complete command economy at ... Read Full Answer >>
  3. To what extent can a government intervene in a market economy?

    There are many different definitions of a market economy, some of which allow for government intervention. In a laissez faire ... Read Full Answer >>
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    In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >>
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