Under a laissez-faire system,
A)government coordinates with firms to determine output and prices for goods and services.
B)input-output analysis is used by planning agencies to determine output levels.
C)the demand and supply process determines output and prices of goods and services.
D)firms coordinate with each other to determine output and price levels for goods and services.

Question

Quizplus · Accepted Answer

Under a laissez-faire system, there is minimal government intervention in the market. As such, the demand and supply process determines the output and prices of goods and services. Firms are free to make their own production and pricing decisions based on market signals.

Under a Laissez-Faire System