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"Laissez-faire"______________?

Correct answer: C. is the French expression Adam Smith used to mean that government should keep its hands off the economy?

  • A. is the rallying cry of the Women Liberation Movement?
  • B. was Karl Marx's exhortation to the workers of the world
  • C. is the French expression Adam Smith used to mean that government should keep its hands off the economy?
  • D. is the economic theory introduced to the U.S by Keynes?

Explanation

Laissez-faire is French for letting people do as they choose and refers to minimal government intervention in economic affairs, an idea associated with classical economics and Adam Smith. It is unrelated to feminism, Marx’s revolutionary slogan or Keynesian economics.

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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.

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