Question

A government is laissez-faire when it

Answer 1

Original Question: A government is laissez-faire when it?

Answer: does not interfere with business affairs and does not regulate its actions

Explanation: Laissez-faire is an economic term that economists use when describing an unregulated market

An unregulated market in being the fact that the government doesn't involve us in the business world.

Its benefit is that allows for substantial growth in the industry as businesses are not bound by rules and regulations could increase the cost and decrease their efficiency.

However it is unbeneficial when businesses began to set up 'monoplies' and 'set inadequate working standards' that harm other businesses and workers. That is when the government would step in to regulate the market and break the laissez-faire terms on how to run a market.

Hope that helps!

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