Which economic philosophy is typically associated with Republicans?

• A. Laissez-faire
• B. Keynesian economics
• C. Supply-side economics
• D. Welfare State

Answer: (A)

Laissez-faire embodies a hands-off approach to the economy, with minimal government intervention and markets operating freely to set prices and allocate resources. This fits Republicans' traditional emphasis on limited government, deregulation, and lower taxes. Keynesian economics argues for active fiscal policy—government spending and demand management during downturns—which involves more government involvement than laissez-faire. A welfare state expands public programs and income support, signaling a larger role for government in the economy. Supply-side economics focuses on tax cuts and incentives to boost production; while some Republicans support it, the broader, typical view associated with the party is minimal intervention, which is captured by laissez-faire.