Laissez-faire economics is characterized by which of the following principles?

Laissez-faire economics is characterized by which of the following principles?

• A. Government regulation of markets
• B. State-controlled economies
• C. Free markets without government interference
• D. Collectivism in production

Answer: (C)

Laissez-faire economics promotes the idea of free markets operating without government interference. This principle is rooted in the belief that individuals and businesses should be free to make their own economic choices, leading to efficient resource allocation and innovation. The idea is that when the government does not regulate markets, competition can thrive, resulting in better products and services for consumers. Historically, proponents of laissez-faire economics argue that minimal government intervention allows the invisible hand of the market to guide economic decisions, which can foster growth and prosperity. This philosophy heavily influenced economic thought during the 18th and 19th centuries, particularly during the Industrial Revolution, when many economies began to shift toward capitalist models. The other options reflect economic systems that involve significant government control or regulation, which contrasts directly with the core tenets of laissez-faire economics. Thus, option C accurately captures the essence of laissez-faire principles.

Laissez-faire economics promotes the idea of free markets operating without government interference. This principle is rooted in the belief that individuals and businesses should be free to make their own economic choices, leading to efficient resource allocation and innovation. The idea is that when the government does not regulate markets, competition can thrive, resulting in better products and services for consumers.

Historically, proponents of laissez-faire economics argue that minimal government intervention allows the invisible hand of the market to guide economic decisions, which can foster growth and prosperity. This philosophy heavily influenced economic thought during the 18th and 19th centuries, particularly during the Industrial Revolution, when many economies began to shift toward capitalist models.

The other options reflect economic systems that involve significant government control or regulation, which contrasts directly with the core tenets of laissez-faire economics. Thus, option C accurately captures the essence of laissez-faire principles.