ObjectiveMcq
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An economy in which government intervention is absent is called:
Correct Answer: A — In laissez-faire
The correct answer is A: In laissez-faire.
Laissez-faire is derived from the French phrase meaning "let it be," referring to an economy with no government interference. Decisions on production, investment, and distribution are made purely by market forces of supply and demand. This differs from mixed capitalism (both government and private sector roles) and socialism (state ownership of means of production).