Question

Which phrase best defines laissez-faire?

A.) to force and overpower
B.) to leave alone and let be
C.) to conceal and hide
D.) to present and show

Answer 1

The correct answer is B. To leave alone and let be

It is from French and means to leave things be. It is used in economy often to show that the government shall not impose its will upon the market.

Answer 2

B.) to leave alone and let be

Laissez-faire refers to a free market economic policy where the government has no control over the economy. It is a French term which means to "let it be".

Capitalism in its pure form is a laissez-faire economic system. During the late 19th century, the US practiced laissez-faire capitalism. The government had no regulations on the economic system and employers were allowed to run their businesses as they wished. In a free system like this there are opportunities to become very wealthy but workers are often exploited.