Question

Read the excerpt below. In a capitalist country, according to Smith, the government should take a laissez faire approach to the economy. What does this mean?



Question 12 options:

a)

The government should take control of the markets (economy).

b)

The government should not be directly involved in the economy; they should have a hands-off approach.

c)

The government should intervene in the economy only when people are starving or when they are at war.

d)

The government should meet yearly to discuss the economy and pass laws to correct wages and prices, when necessary.

Answer 1

b) The government should not be directly involved in the economy; they should have a hands-off approach.