Which phrase describes an economic system with minimal government intervention in business?

• A. Regulation
• B. Public Ownership
• C. Laissez-Faire
• D. Welfare State

Answer: (C)

Laissez-faire describes an economic system with minimal government intervention. The idea is that markets should largely regulate themselves, with prices, production, and wages determined by supply and demand rather than by laws or subsidies. Proponents argue that free competition leads to more efficient businesses and lower costs for consumers, while the government's role is limited to protecting property rights, enforcing contracts, and maintaining a stable legal framework. This contrasts with regulation, which is government rules on how businesses operate; public ownership, where the government owns industries; and a welfare state, which involves extensive government programs and redistribution. Because the question asks for the phrase that best describes a system with minimal government involvement in business, laissez-faire is the best fit.