Which term describes a hands-off approach to government intervention in business?

Which term describes a hands-off approach to government intervention in business?

• A. Free market
• B. Interventionism
• C. Regulation
• D. Laissez-faire

Answer: (D)

Think about a government's role in the economy as how much it steps in. A hands-off approach means the government stays out of business decisions and lets market forces set prices and allocate resources. That stance is called laissez-faire. It emphasizes minimal government involvement, with little regulation or direct intervention in business activities. By contrast, interventionism involves active government action to shape the economy, regulation refers to specific rules on how businesses operate, and a free market describes the broader system where price and production are determined mainly by supply and demand. Laissez-faire best captures the idea of leaving business largely to the market.

Think about a government's role in the economy as how much it steps in. A hands-off approach means the government stays out of business decisions and lets market forces set prices and allocate resources. That stance is called laissez-faire. It emphasizes minimal government involvement, with little regulation or direct intervention in business activities. By contrast, interventionism involves active government action to shape the economy, regulation refers to specific rules on how businesses operate, and a free market describes the broader system where price and production are determined mainly by supply and demand. Laissez-faire best captures the idea of leaving business largely to the market.