An extreme result of free-market capitalism without government regulation is referred to as:

• A. laissez-faire
• B. market failure
• C. anarchy
• D. the 'law of the jungle'

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the key terms given in the problem. 'Laissez-faire' refers to a policy or attitude of letting things take their own course, without interfering, especially by the government in economic matters.
2. Step 2: Recognize that 'market failure' occurs when the free market fails to allocate resources efficiently, often justifying government intervention.
3. Step 3: Note that 'anarchy' means a state of disorder due to absence or nonrecognition of authority, which is different from economic concepts.
4. Step 4: The phrase 'law of the jungle' metaphorically describes a situation where there is no regulation or rules, and only the strongest survive, which can be seen as an extreme form of unregulated capitalism.
5. Step 5: Conclude that the problem is testing your understanding of these terms and their implications in economic contexts, especially the consequences of no government regulation in a free market.