Final answer:
The laissez-faire economic model advocates for minimal government interference, allowing supply and demand to naturally dictate market operations. However, governments may intervene to prevent economic downturns and address other market-related issues.
Step-by-step explanation:
The laissez-faire model sees a limited role for government in which the natural forces of supply and demand are allowed to prevail in the marketplace.
Proponents of laissez-faire economics or free-market economics believe that these market forces, working without any government intervention, provide the most efficient and effective way for markets to operate. However, historical cycles have shown that markets can go through phases of surplus, inflation, and recession.
Despite the ideals of laissez-faire, governments often intervene to prevent economic depressions or to address social and ethical concerns that arise in purely free-market systems.