Which concept suggests minimal governmental interference in economic matters?

Which concept suggests minimal governmental interference in economic matters?

• A. Capitalism
• B. Laissez faire
• C. Interventionalism
• D. Free market

Answer: (B)

The concept that suggests minimal governmental interference in economic matters is Laissez faire. This term originates from the French phrase that translates to "let do" or "let go," indicating that economic activity should function with little to no government intervention. Laissez faire advocates for a free market where individual entrepreneurs and businesses operate independently, making their own decisions about production, pricing, and sales based purely on supply and demand. Proponents believe that when businesses are free from regulation, they can better respond to consumer needs and drive economic growth. While capitalism supports the idea of private ownership and free markets, it does not inherently specify the level of government involvement; in some forms of capitalism, the government may play a significant regulatory role. The term free market also implies minimal intervention but does not directly convey the philosophy as clearly as Laissez faire does. Interventionalism, on the other hand, explicitly supports government action to influence the economy, making it contrary to the principle that Laissez faire embodies. Thus, Laissez faire is the most precise answer in this context.

The concept that suggests minimal governmental interference in economic matters is Laissez faire. This term originates from the French phrase that translates to "let do" or "let go," indicating that economic activity should function with little to no government intervention.

Laissez faire advocates for a free market where individual entrepreneurs and businesses operate independently, making their own decisions about production, pricing, and sales based purely on supply and demand. Proponents believe that when businesses are free from regulation, they can better respond to consumer needs and drive economic growth.

While capitalism supports the idea of private ownership and free markets, it does not inherently specify the level of government involvement; in some forms of capitalism, the government may play a significant regulatory role. The term free market also implies minimal intervention but does not directly convey the philosophy as clearly as Laissez faire does. Interventionalism, on the other hand, explicitly supports government action to influence the economy, making it contrary to the principle that Laissez faire embodies. Thus, Laissez faire is the most precise answer in this context.