Which term describes a hands-off government approach to business, typical before Progressive reforms?

Which term describes a hands-off government approach to business, typical before Progressive reforms?

• A. Laissez-faire
• B. Tariffs
• C. Regulation
• D. Socialism

Answer: (A)

Laissez-faire describes a hands-off approach where the government largely stays out of how businesses operate. In the late 19th and early 20th centuries, many policymakers believed markets would regulate themselves, with limited government interference in industry. This meant minimal regulation and little action to curb abuses, which was typical before Progressive reforms that started expanding oversight. Other terms involve direct government intervention: tariffs are taxes on imports that affect trade; regulation means specific rules governing business behavior; socialism envisions the government owning or controlling major industries. So the term that best fits a hands-off stance is laissez-faire.

Laissez-faire describes a hands-off approach where the government largely stays out of how businesses operate. In the late 19th and early 20th centuries, many policymakers believed markets would regulate themselves, with limited government interference in industry. This meant minimal regulation and little action to curb abuses, which was typical before Progressive reforms that started expanding oversight. Other terms involve direct government intervention: tariffs are taxes on imports that affect trade; regulation means specific rules governing business behavior; socialism envisions the government owning or controlling major industries. So the term that best fits a hands-off stance is laissez-faire.