Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Laissez-Faire Economy - Coursework Example

Comments (0) Cite this document
Laissez-Faire Economy Name Instructor Task Date Introduction Laissez-faire economy refers to a free market economic system where there is minimal government intervention. Laissez-faire encompasses both the doctrine and policies that actually enforce such an economic system…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
Laissez-Faire Economy
Read TextPreview

Extract of sample "Laissez-Faire Economy"

Download file to see previous pages The resources are allocated by voluntary market transactions with very limited state intervention; the main role of government is to safeguard property rights of individuals. The belief is that both economy and the public would do without governmental involvement that may hamper the economy’s complete potential. However, a purely and effective laissez-faire economy is virtually non-existent; all successful national economies are buttressed by great and effective governments. Laissez-faire economies and liberal market systems lack adequate self-regulation mechanisms and this necessitates the government to intervene to prevent enduring economic crises and numerous social problems associated with pure Laissez-faire economy such as escalating income inequalities. Government’s intervention is also necessary to prevent market failure. Most economic systems are mixed with substantial state intervention, regulation and direction (Baumol & Blinder, 2011). State intervention in an economy is critical to alleviate market failure. Frequently, market failure is an outcome of lack of information concerning the products available in the market among the consumers. In market failure, participants’ self-promoting actions fail to achieve an efficient outcome, so that it is possible to increase the welfare of one or more group of individuals without harming someone else welfare. Market failures can first result from an externality, which is an interdependency among two or more individuals that is not taken into account by a market transaction (Baumol & Blinder, 2011). An example includes pollution. Market failure may also be associated with public goods. A public good’s benefit can be received by payers and nonpayers alike once the good is provided. The provider cannot, therefore, keep a non-payer from consuming the good’s benefit, and this inability limits incentives on the part of users to finance the good’s provision. An example of such a public good is defense. A third source of market failures may stem from property rights that are either undefined or owned in common unrestricted or open access. Markets, which allow for the voluntary exchange of property rights, can only operate if these rights are recognized and protected. Common ownership when coupled with open access, would also lead to wasteful exploitation in which a user ignores the effects of his or her action on others (Baumol & Blinder, 2011). The presence of market failures means that some form of state intervention on a collective basis may be needed. Sometimes the state could be intervening as an outside authority to negotiate an agreement among the concerned parties. Fig. 1 (below): Examples of Market Failure and Ways the Government Intervenes To Remedy Them Types of market failure: • Externalities • Merit and demerit goods • Public goods • Natural monopolies • Equity Types of government intervention: • Taxes • Subsidies • Regulations • Public provision • Transfer payments State intervention results into mixed economy system. This is where there is a merge of public and private organization and ownership of property. All rely on markets for some purposes, but also assigns some role to government. A mixed economy is one with some public (state) influence over the working of free markets. There may also be some public tenure amalgamated with personal property. It is more or less a blend of socialism and capitalism. In mixed ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Laissez-Faire Economy Coursework Example | Topics and Well Written Essays - 1500 words”, n.d.)
Laissez-Faire Economy Coursework Example | Topics and Well Written Essays - 1500 words. Retrieved from
(Laissez-Faire Economy Coursework Example | Topics and Well Written Essays - 1500 Words)
Laissez-Faire Economy Coursework Example | Topics and Well Written Essays - 1500 Words.
“Laissez-Faire Economy Coursework Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Laissez-Faire Economy

Chinese Economy

As the Chinese government opens its doors to the outside world, China, with its vast lands and the huge supply of labor, is fast becoming one of the world’s most favorite places for investors.
At present, China had developed a hybrid economic structure where half of the economy is still controlled by the government through state ownership of different business establishments and half is now an open market. As one of the world’s leading manufacturers, China is gaining ground. Foreign Direct Investment (FDI) had increased dramatically over the two decades since its economic liberalization began. However, there are important consequences that China must face as its FDI increases. First, China must accelerate integrat...
9 Pages(2250 words)Assignment

History of Gas Prices and their Effect on the Economy

The relation of inflation within a society with the ever-changing oil and gas prices is pretty much significant and one must understand that there is a strong bond present between the two. This strong linkage allows for prices to shoot up whenever there is a sudden upward trend experienced in the oil and gas prices and whenever the gold rates have increased on the global front. With so much at stake and economies coming to a standstill with the uprising trend in the oil and gas prices on a global level, one can only expect problems coming to the fore of the common man and woman present on the street. The worst possible explanation given by experts in the field of oil and gas prices’ regimes is that these are done to benefit...
9 Pages(2250 words)Coursework

An Outlook of U.K Economy

The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered in 2004, to 3.2% growth, then slowed to 1.7% in 2005 and 2.7% in 2006. “ (, 2007)

The most prominent characteristic of the capitalist economy is the control of few people on a large amount of Capital. These people...
6 Pages(1500 words)Term Paper

Growth Performance of Indian Economy

This percentage is expected to rise to 70% by 2030 - the largest in the world, according to a report titled Destination India- from the Investment Commission of India.” (Hood).
We all know that for more than a century, the United States has been one of the largest economies in the world. However the past few years showed major development in some countries, and the focus moved to Asian countries like India and China which were progressing very fast.

According to the experts, share in the total world GDP of India will rise from 6% to 11% by the year 2025. The GDP of India rose to 9.0% during the year 2005-06 again to 9.4% in 2006-07. The projection reports say that India will be 60% the size of the US economy...
6 Pages(1500 words)Assignment

Organizational Behaviour, Types of Ownership, and Mixed Economy Issues

...Organizational Behaviour Task Explain what is meant by the term ‘mixed economy’. A ‘mixed economy’ is referring to the economic system wherein both the private-owned companies and the state-owned companies are present. The economic activities1 of a ‘mixed economy’ normally functions through a combination of capitalism and socialism or both. (Bullock & Trombley, 1999: p. 535) It means that the production of goods within the country is manufactured by both the private and public sector under the control of the government. Task 2: Two friends who work at the same factory are soon to be made redundant. One of them already runs a small business as well as working full time at the factory. Knowing they are likely to receive a quite large...
8 Pages(2000 words)Assignment

The Importance of Tourism to the World Economy

Since the eighties, perceived risk research has been of ongoing interest to tourism researchers, Dolnicar (2005) and Dickson, Chapman, and Hurrell (2000)  states. Contributions often include those which investigate positive risk as a factor in increasing tourists who are seeking a thrill. On the other hand, there are also those who view these risks as something negative, thus avoiding the destinations which are haunted by different risks such as diseases, terrorism and other forms of political instability (Dickson & Tugwell, 2000).

The current qualitative research inquired about the risks perceived by young people as regards both domestic and international traveling. A sample of 23 was interviewed for this purp...
15 Pages(3750 words)Research Paper

Effect of Corporations Moving Jobs Overseas on the Economy

The issue comes into focus, whenever there are political, economic debates or talks about H1B visa limits. The economic slowdown has further led to the intensification of these debates. But, despite apprehensions from different quarters, neither the companies nor the government has said a final word on the trend. Increasing levels of competition amongst the corporate houses have been one of the key highlights of the globalization era. Be it the retail sector, the banking, the automobile, the IT-enabled services, the white goods space, etc. the companies have always been on the lookout for reaching out to more number of customers while doing everything possible to please the existing lot. Leveraging the economies of scale has prove...
8 Pages(2000 words)Coursework

The Impact of the Growth of FDI on the Indian Economy

...Macro economic impact of the FDI flows on the Indian Economy Table of Contents Page ........................................................................................................................... 1. Introduction.................................................................................................................. 2. Relation to previous Research.................................................................................... 2.1. Early Research........................................................................................................ 2.2. Positive Impacts of FDI on the Economy.......................................................... 2.3. Negative Impacts of FDI on the Economy...
70 Pages(17500 words)Research Proposal

Globalization and Political Economy

... Globalization and political economy Globalization is widely understood as a modern process of integration of different economies, societies and cultures. Via a network of communication, transportation and trade, globalization has shifted accents of the modern world’s society to total unification. Globalization is also generally referred to integration of different economies, investment development, migration and technologies’ development. Nevertheless it is possible to claim that a process of globalization can’t be considered separately from other factors, such as economic, technological, socio-cultural, political, and biological ones (Held and McGrew, 2002). Globalization refers to a wide scope of ideas from different spheres through...
7 Pages(1750 words)Term Paper

The International Political Economy of Nursing

Surveys involve the formulation of questions that assist in the gaining of evidence. Other clinical methods such as testing the hypothesis are applied in the collection of data for the formulation of evidence. Evidence-based practice is a vital approach in the field of clinical practice because it does not only put into consideration the current state of the patient but also the previous data and experience on the issue. To understand the connection between evidence-based practice and clinical appraisal, some past information is necessary for consideration. Evidence-based practice can historically be said to have started from the field of medicine, with an earlier name of evidence-based medicine. The simple application of this pra...
7 Pages(1750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic Laissez-Faire Economy for FREE!

Contact Us