Question 1 · 1 mark · Difficulty 1/3
Which of the following best describes the policy of 'laissez-faire' followed by Republican presidents in the 1920s?
- The government should avoid interfering in the economy and let businesses operate freely
- The government should nationalise key industries to ensure economic growth
- The government should increase taxes on the wealthy to fund social welfare
- The government should actively regulate big business to protect workers
Show answer & explanation
✓ Answer: A — The government should avoid interfering in the economy and let businesses operate freely
Award 1 mark for identifying that laissez-faire means 'leave alone' — the Republican belief that government should not interfere in business or the economy. D is incorrect — this describes regulation, the opposite of laissez-faire. B is incorrect — nationalisation was not Republican policy. C is incorrect — Republican presidents like Coolidge actually reduced taxes on the wealthy.