Which of the following best describes the concept of laissez-faire?

a.

Government should not intervene in the economy.

b.

Government should actively intervene in the economy whenever it judges the action to be beneficial.

c.

Government should intervene in the economy only to promote short-term economic stability.

d.

Government should intervene in the economy only to maximize long-term growth rates.

e.

Government should intervene in the economy only when the economy is not at full employment or there is substantial inflation.

Question

Coleman Guzman

Business

31 May, 04:45

Which of the following best describes the concept of laissez-faire?

a.

Government should not intervene in the economy.

b.

Government should actively intervene in the economy whenever it judges the action to be beneficial.

c.

Government should intervene in the economy only to promote short-term economic stability.

d.

Government should intervene in the economy only to maximize long-term growth rates.

e.

Government should intervene in the economy only when the economy is not at full employment or there is substantial inflation.

+5

Answers (1)

Know the Answer?

Brice · Answer 1

a. Government should not intervene in the economy.

Explanation:

The concept of laissez-faire arose during the economic liberalism movement and promotes that the government should not intervene in the economy. According to laissez-faire, the main economic role of the government was to regulate and protect rights to private property.

Therefore, the answer is a. Government should not intervene in the economy.