Question

Which statement explains why a follower of laissez-faire capitalism would argue that the economy grows when government avoids regulations?
A-In a planned economy, lack of regulations increases wages and profits.
B-In a free market economy, prices and wages result from natural forces.
C-In a mixed economy, wages rise faster than profits.
D-In a capitalist system, government limits businesses.

Answer 1

B. in a free market economy, prices and wages result from natural forces

since government will not take any involvement in the economy,  prices and wages will be determined by the power of supply and demand

hope this helps