Which concept refers to the lack of government intervention in economic activities?

The concept that refers to the lack of government intervention in economic activities is laissez-faire. This term comes from the French phrase meaning "let do" or "let go," indicating an economic environment where businesses operate with minimal or no government interference. In a laissez-faire system, the market is driven by supply and demand, allowing for free competition and individual decision-making in economic matters.

This approach is rooted in the belief that minimal government involvement leads to greater efficiency and innovation within the economy, as businesses can respond more freely to consumer needs and preferences without bureaucratic constraints. The laissez-faire principle is often associated with classical economics and is central to capitalism, where the role of government is primarily limited to protecting property rights and maintaining the rule of law, rather than directing economic activities.