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Definition of Laissez-faire: 

Laissez-faire is a French term for “let things alone”.  Laissez-faire is commonly used to describe a free market where there is minimal government interference and businesses are left alone. 

Detailed Explanation:

Advocates of a market economy believe the economy is self-correcting and government interference should be minimal. Laissez-faire is a term commonly used to describe this position. Consumers and producers meet in the market, any location where goods and information are traded, including, but not limited to open-air markets, stores, the internet, and exchanges.  It is here consumers and producers “communicate” by purchasing and selling products or services.  The buyer tells the producer that he (or she) approves of the product and price. Each privately-owned company strives to have the optimum allocation of resources to produce the good or service it sells.  Business owners make all of their economic decisions independently in the marketplace. By acting in their own best interest, businesses and consumers reach the best solution for society. Government regulations interfere with the efficiency of the "invisible hand" that guides a laissez-faire or market-driven economy.

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