Laissez-Faire vs Regulation · US History

The term 'laissez-faire' is most closely associated with which of the following economic philosophies?

  1. Government-mandated wealth redistribution
  2. Minimal government interference in the free market
  3. Centralized planning and state-owned industries
  4. High protective tariffs to support domestic labor and industry
Show answer and explanation

Correct answer: Minimal government interference in the free market

Laissez-faire, meaning 'let them do,' advocates for a hands-off approach by the government regarding the economy. Proponents believe that the 'invisible hand' of the market regulates prices and production more efficiently than state intervention.

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