What economic concept focuses on minimal government intervention in business?

• A. Keynesian economics
• B. Free market economics
• C. Laissez-faire economics
• D. Socialism

Answer: (C)

The concept that focuses on minimal government intervention in business is laissez-faire economics. This approach advocates for a free-market system where the economy is driven by private enterprise, and market forces determine prices, production, and distribution of goods and services without significant government restrictions or oversight. The idea is rooted in the belief that economies function best when individuals are left to pursue their own economic interests, leading to greater innovation and efficiency.

In contrast to laissez-faire, Keynesian economics emphasizes active government intervention, particularly during economic downturns, to manage demand and stabilize the economy. Free market economics supports the idea of free markets but may allow for some level of government regulation to ensure competition and protect consumers. Socialism, on the other hand, involves significant government control over production and distribution, advocating for collective or governmental ownership of resources, which is diametrically opposed to the principles of laissez-faire economics. Thus, the focus on minimal government intervention clearly aligns with the definition of laissez-faire.