ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government provides additional funding for welfare programs.
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The national government takes control of public education.
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The president steps in to stop the rise of inflation.
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The president allows inflation to rise without interfering.
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Detailed explanation-1: -Laissez-faire examples Based on laissez-faire policy, it allowed private businesses to make as much money as possible without intervention in the idea that this wealth would trickle down to individuals. Tax cuts: When governments cut taxes to stimulate the market, this is based on laissez-faire theory as well.
Detailed explanation-2: -Laissez-faire economics is a theory that says the government should not intervene in the economy except to protect individuals’ inalienable rights. In other words, let the market do its own thing. If left alone, the laws of supply and demand will efficiently direct the production of goods and services.
Detailed explanation-3: -Laissez-faire is a policy of minimum governmental interference in the economic affairs of individuals and society. The doctrine of laissez-faire is usually associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778. The term laissez-faire means, in French, “allow to do.”
Detailed explanation-4: -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.