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In the context of the cost of living index, what does it indicate if a city's index is above 100?
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0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
Which of the following best describes the laissez-faire policy in economics?
A
An approach where the government owns and controls all major industries.
B
A system in which only monopolies are allowed to operate without any competition.
C
An economic system in which the government minimizes its intervention in markets and allows individuals to make decisions freely.
D
A policy where the government strictly regulates prices and production to ensure market stability.
검증된 단계별 안내1
Understand the concept of laissez-faire in economics, which refers to minimal government intervention in economic activities.
Recognize that laissez-faire supports free markets where individuals and businesses make decisions without government control or interference.
Compare the given options to identify which one aligns with the principle of limited government involvement.
Eliminate options that describe government ownership, strict regulation, or monopolistic control, as these contradict laissez-faire principles.
Conclude that the best description is the one stating that the government minimizes its intervention and allows individuals to make decisions freely.
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