Final answer:
Laissez-faire policies can have a positive effect on economic growth and efficiency by allowing private markets to operate freely and encouraging innovation, competition, and economic expansion.
Step-by-step explanation:
Laissez-faire policies, which advocate for minimal government intervention in the economy, can have a positive effect on economic growth and efficiency. These policies allow private markets to operate freely, giving private investors the opportunity to make decisions based on market forces.
This can lead to innovation, competition, and economic expansion. For example, in the late 1800s in the United States, laissez-faire policies during industrialization allowed businesses to operate with minimal government regulation, resulting in increased productivity and economic development.