Question

Which is true of Adam Smith's “laissez faire” (hands off) capitalism?
Select one:
a. government should own major industries
b. the economy should be controlled by the ruler
c. all citizens should be equal
d. government should have a limited role in the economy

Answer 1

Answer: D) government should have a limited role in the economy

Explanation: The whole idea of laissez-faire economics is that the government should stay away (hands off!) from the economy. The first two are obviously eliminated, and the third one has nothing to do with economics, so that one is eliminated as well.