Which 18th-century economist's work 'The Wealth of Nations' provided the foundational theory for laissez-faire?
Show answer and explanation
Correct answer: Adam Smith
Adam Smith argued that individuals pursuing their own self-interest in a free market would unintentionally promote the good of society. His theories were widely cited by American business leaders to oppose government intervention.
Keep practicing
More Laissez-Faire vs Regulation questions
- What was the significance of the Wagner Act (National Labor Relations Act) of 1935?
- In the late 20th century, 'deregulation' in industries like airlines and telecommunications was intended to:
- The Sherman Antitrust Act of 1890 was often ineffective in its early years because:
- Environmental regulations like the Clean Air Act (1970) are based on the economic concept that:
- Herbert Hoover’s 'Associationalism' was a middle-ground approach that encouraged:
- Critics of government regulation often argue that it leads to 'regulatory capture,' which occurs when: