The policy of minimum government interference in or regulation of economic activity,
Advocated by Adam Smith and the Classical economists, was known as
A) the law of comparative advantage.
B) laissez-faire.
C) the labor theory of value.
D) Mercantilism.

Question

Quizplus · Accepted Answer

The policy of minimum government interference in or regulation of economic activity is known as laissez-faire. This was a key concept advocated by Adam Smith and the Classical economists. The law of comparative advantage refers to the benefits of specialization and trade between countries. The labor theory of value was a key concept in Marxist economics. Mercantilism was an economic theory prevalent in the 16th-18th centuries that focused on government control of trade in order to increase national wealth.

The Policy of Minimum Government Interference in or Regulation of Economic