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Laissez faire is the economic policy of a free market economy, this means a lot of competition between companies and very little government intervention in the economy. 2 people found this useful. Edit.
Laissez-faire policy is that the government would abstain from interfering in the free market. Adam Smith believed that the combination of the two would result in free trade capitalism. a free market economy. Capitalism is a system in which a nation's trade and industry are operated privately for profit by private owners, rather than by the government.