Asked by Maritza Cabrera on Jul 05, 2024
Verified
Laissez-faire capitalism limits the government's economic functions to the following, except
A) protecting private property rights.
B) establishing a legal environment to enforce contracts among individuals.
C) preventing individuals and firms from coercing others.
D) setting prices of individual goods and services.
Laissez-Faire Capitalism
is an economic system where transactions between private parties are free from government intervention, such as regulations, privileges, tariffs, and subsidies.
Economic Functions
Concern the roles and operations of an economy, including production, distribution, and consumption of goods and services among individuals and organizations.
Private Property
A legal designation for the ownership of property by non-governmental legal entities.
- Describe the role of government in a laissez-faire capitalist system.
Verified Answer
ND
Natalia DuarteJul 05, 2024
Final Answer :
D
Explanation :
Laissez-faire capitalism advocates for minimal government intervention in the economy, allowing the free market to determine prices. The government's role is limited to protecting property rights, enforcing contracts, and preventing coercion, but not setting prices of goods and services.
Learning Objectives
- Describe the role of government in a laissez-faire capitalist system.