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August Dunbar
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Brandon Ruffin
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“Prices and wages should be determined by the marketplace.” The author of this statement would most probably support 1. government ownership of utilities 2. minimum-wage laws 3. wage and price controls 4. laissez-faire capitalism
Correct Answer Number: 4 Explanation: Laissez-Faire capitalism calls for the complete non-involvement of government in the economy. The approach is one of “hands-off”, in which prices, quality and competitive practices are solely determined by competition. This approach was advocated by the English economist Adam Smith in his work The Wealth of Nations and followed by the US government up until the late 1800’s, early 1900’s.
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