Which term describes the economic philosophy of minimal government regulation?

• A. Feudalism
• B. Laissez-Faire Capitalism
• C. Mercantilism
• D. Communism

Answer: (B)

Laissez-faire capitalism is the term for an economic philosophy that favors minimal government regulation. In this view, markets work best when individuals and businesses can operate with little interference, and prices, production, and innovation are guided by supply and demand. The government's role is mostly limited to protecting property rights, enforcing contracts, and defending the nation. This idea contrasts with feudalism, which relies on hierarchical obligations and land-based control; mercantilism, which emphasizes government-driven policies to accumulate wealth through trade restrictions and regulations; and communism, where the state plans and controls economic activity. So, the concept described is laissez-faire capitalism—the belief that free markets with little regulation promote efficiency and growth.