Liberalization

Liberalization is the process of reducing government regulations in an economy to promote free market competition. It involves the removal of restrictions on private sector businesses and the opening up of markets to foreign competition. One of the key elements of liberalization is the adoption of the policy of laissez-faire, which means letting the market operate without interference from the government.

Deregulation of the Economy

Deregulation is a form of liberalization that involves the removal of government regulations on various sectors of the economy, such as telecommunications, energy, and transportation. Deregulation aims to promote competition, increase efficiency and reduce costs. By deregulating, the government allows private sector businesses to operate with fewer restrictions, leading to increased innovation and growth in the economy.

Policy of Laissez-Faire

The policy of laissez-faire is a French term that means "let it be." It is a philosophy that advocates for minimal government intervention in the economy. The policy promotes the idea that markets are best left to operate on their own, without government interference. Laissez-faire policies involve the removal of regulations, subsidies, and tariffs, and the promotion of free trade and competition.

Conclusion

In conclusion, the correct answer to the question is option A, Liberalization. Deregulation of the economy and the policy of laissez-faire are both elements of liberalization, which involves the reduction of government regulations in the economy to promote free market competition. By promoting liberalization, governments seek to increase efficiency, innovation, and economic growth.