Explanation: In a laissez-faire economy, the only role of the government is to prevent any coercion against individuals. Theft, fraud, and monopolies prevent rational market forces from operating.

Laissez-faire policies need three components to work: capitalism, the free market economy, and rational market theory.

Capitalism is an economic system in which private entities own the factors of production. In the 1987 movie “Wall Street,” Michael Douglas as Gordon Gekko summed up the philosophy of laissez-faire capitalism when he famously said, “Greed, for lack of a better word, is good.”

Source: https://www.thebalance.com/laissez-faire-definition-4159781