Which of the Following Refers to an Economic Philosophy Advocating

question 48

Multiple Choice

Which of the following refers to an economic philosophy advocating that the government not intervene in the economy and leave market forces to influence the economic behavior of individuals and firms?

• A) laissez-faire
• B) corporatism
• C) socialism
• D) communism
• E) individualism

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Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and opportunity costs.

Opportunity Cost

The highest valued alternative that must be sacrificed as a result of choosing an option.

Economic Losses

The decrease in wealth or resources experienced by an individual, organization, or country, typically measured by cost incurred that are not offset by gains.

Value of Resources

The worth placed on natural, human, and capital assets based on their utility in producing goods and services.