Explain the role of government in a laissez-faire economic system.

Economics Laissez Faire Questions



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Explain the role of government in a laissez-faire economic system.

In a laissez-faire economic system, the role of government is minimal or non-existent. The government's main responsibility is to protect property rights, enforce contracts, and maintain a legal framework for economic transactions. It does not interfere with the free market and allows individuals and businesses to operate without government intervention or regulation. The government's role is limited to ensuring fair competition, preventing fraud and monopolies, and providing public goods and services that cannot be efficiently provided by the private sector.