Which of the following ideas is most closely associated with laissez-faire economics?

• A. Redistribution of income through taxation
• B. Central planning of economic activity
• C. Minimal government intervention in markets
• D. Government price controls

Answer: (C)

Verified step by step guidance

1. Understand the concept of laissez-faire economics, which advocates for minimal government intervention in economic markets.
2. Review each option and identify the role of government intervention involved:
3. 1. Redistribution of income through taxation involves active government policy to adjust income distribution, which is interventionist.
4. 2. Central planning of economic activity means the government controls production and allocation decisions, which is highly interventionist.
5. 3. Government price controls involve the government setting prices, again a form of intervention.
6. Recognize that the idea most closely associated with laissez-faire economics is the one advocating minimal government intervention in markets.