Which of the following ideas is associated with laissez-faire economics? A.command economy B.free market economy C.mixed market economy D.socialist economy E.traditional economy

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Accepted Answer

The correct answer is B.free market economy. The term "laissez faire" roughly translates to "let them do what they want." In terms of economics, this idea is the guideline for the free market economy. In a free market economy, the government does not interfer with businesses. Instead, the laws of supply and demand dictate what goods are produced and the prices are determined freely by businesses. A perfect free market economy would have no government involvement and there would be no laws dictating factors like minimum wage, benefits for employees, etc.

Suggested Answer

Free market economies are associated with Laissez-faire economics. The belief that prices for goods are set freely by consumers and sellers and the supply is free from monopoly or government intervention.