What does the term "Laissez-Faire" mean in economic terms?

The term "Laissez-Faire" is derived from French, meaning "let do" or "let go," and in economic terms, it refers to a hands-off government approach to economic activities. This principle promotes the idea that economic success is best achieved when the government does not interfere in the workings of the market, allowing individuals and businesses to operate freely according to their own interests.

Under a Laissez-Faire system, the belief is that the free market will regulate itself through supply and demand, and that government intervention can often lead to inefficiencies and unwanted consequences. As a result, advocates of Laissez-Faire economics emphasize the importance of limited government involvement, arguing that this leads to more robust economic growth and innovation.

The other options reflect different economic principles. Government intervention in the economy refers to policies where the government actively engages in economic decision-making. Market regulation involves oversight and laws established to maintain fairness in the marketplace. Consumer protection focuses on safeguarding buyers from unfair business practices. These concepts are all in contrast to the idea of Laissez-Faire, which champions minimal regulation and intervention.