Building on the Philosophical Assumption of the Material State of Nature

question 48

Multiple Choice

Building on the philosophical assumption of the material state of nature, the so-called physiocrats argued that freedom and equality should be the standard economic principles and that the state should adopt a _________, or "hands-off", policy in that regard.

• A) "leger-de-main"
• B) "laissez-vite"
• C) "laissez-faire"
• D) "laissez-économiques"

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Definitions:

Split-Up

The splitting up of a company into two or more companies.

Companies

Legal entities formed of individuals, shareholders, or members, aimed at operating for profit.

Excess Return

The return on an investment that exceeds the risk-free rate or a comparative benchmark or index.