What does 'laissez-faire' advocate in economic policy?

Laissez-faire is an economic philosophy that emphasizes free-market capitalism with minimal government intervention. The concept is rooted in the belief that economies function best when individuals are allowed to make their own choices regarding production, consumption, and trade without significant restrictions imposed by the government. This approach posits that the forces of supply and demand naturally regulate market activities, leading to efficient allocation of resources.

In this context, the correct answer aligns perfectly with the principles of laissez-faire, as it supports the idea that the government's role should be limited, enabling the market to operate on its own. The focus is on individual freedoms and entrepreneurial spirit, allowing businesses and consumers to interact freely.

In contrast, the other options suggest varying degrees of government involvement in the economy, which do not align with the laissez-faire philosophy. Increased government regulation, strict control over production and pricing, and government ownership of key industries all imply a more interventionist approach, which is fundamentally opposed to the laissez-faire economic stance.