Laissez-faire: Supply and Demand and Demand Curve
TASK 1
Laissez-faire
Laissez-faire is an economic environment in which transaction between private parties are free from tariffs, government subsidies, and enforced monopolies, with only enough government regulation sufficient to protect property rights against theft and aggression. The phrase laissez-faire is French and literally means “let them do”. But it broadly implies “let it be”, or “leave it alone”. A laissez-faire state and completely free market has never existed, though the degree of government regulation varies considerably.
The basic characteristics of Laissez-faire economic system
Free competition
The main body of the economic operation is for a large number of small private enterprises. Production and management strategies are made by private capitalists according to changing in market supply and demand. Private capitalists are free to participate or exit the economic activity of any of industries. The form of price is spontaneous in market. It shows the change of supply and demand, it can distribute the scarce resources to producers, and also distributes goods and services to consumers.
Consumer rights
Consumers are the main part of economic operation. Consumer rights show: private capitalists must be base on and consider the preferences of consumers in the coordination of production and management strategies. According to consumers in the market, the number of monetary voting (consumers use their own money to purchase their favorite products, it is also another form of voting), and understand the social consumption trends. Thus distributes human and material resources, financial resources, production and meet consumers demand to achieve the purpose of maximum profit. Consumers are the guidance of economic activity through the function of preference for certain goods and services.
Protecting of government
Laissez-faire economic activities and resource allocation by the market mechanism to promote, the country or the government 's
Laissez-faire
Laissez-faire is an economic environment in which transaction between private parties are free from tariffs, government subsidies, and enforced monopolies, with only enough government regulation sufficient to protect property rights against theft and aggression. The phrase laissez-faire is French and literally means “let them do”. But it broadly implies “let it be”, or “leave it alone”. A laissez-faire state and completely free market has never existed, though the degree of government regulation varies considerably.
The basic characteristics of Laissez-faire economic system
Free competition
The main body of the economic operation is for a large number of small private enterprises. Production and management strategies are made by private capitalists according to changing in market supply and demand. Private capitalists are free to participate or exit the economic activity of any of industries. The form of price is spontaneous in market. It shows the change of supply and demand, it can distribute the scarce resources to producers, and also distributes goods and services to consumers.
Consumer rights
Consumers are the main part of economic operation. Consumer rights show: private capitalists must be base on and consider the preferences of consumers in the coordination of production and management strategies. According to consumers in the market, the number of monetary voting (consumers use their own money to purchase their favorite products, it is also another form of voting), and understand the social consumption trends. Thus distributes human and material resources, financial resources, production and meet consumers demand to achieve the purpose of maximum profit. Consumers are the guidance of economic activity through the function of preference for certain goods and services.
Protecting of government
Laissez-faire economic activities and resource allocation by the market mechanism to promote, the country or the government 's