The Doctrine of Laissez Faire Is Based on the Belief

question 18

Multiple Choice

The doctrine of laissez faire is based on the belief that

• A)Markets are likely to do a better job of allocating resources than government directives.
• B)Government directives are likely to do a better job of allocating resources than markets.
• C)Government failure does not exist.
• D)Markets result in an unfair distribution of income.

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Definitions:

Reserved Powers

Powers which are not explicitly listed in the U.S. Constitution as belonging to the federal government and are therefore, according to the Tenth Amendment, reserved to the states or the people.

Constitutional Source

The origin or basis of a legal principle found within a constitution.

Cooperative Federalism

An approach to federalism where national, local, and state governments work collaboratively and jointly to address mutual issues, instead of formulating policies independently.

Concurrent Powers

Powers that are shared by both the federal and state governments in the United States, allowing both to legislate on the same issues.