Limited government intervention in the economy aims to promote what?

• A. Market monopolies
• B. Consumer choice and business freedom
• C. Central planning
• D. Tax increases

Answer: (B)

Limited government intervention in the economy is designed to foster an environment where consumer choice and business freedom can thrive. This approach is foundational to the concept of free enterprise, where individuals and companies operate with minimal restrictions.

When the government is less involved in the economy, businesses are better able to innovate, respond to consumer demands, and compete in the marketplace. This, in turn, empowers consumers by providing them with more options and enhancing their purchasing power.

In contrast, market monopolies, central planning, and tax increases would generally impede consumer choice and reduce the freedom of businesses. Market monopolies occur when one or a few firms dominate a market, stifling competition. Central planning refers to significant government control over economic decisions, which can limit business flexibility. Tax increases can reduce disposable income and constrain both consumer spending and business investment. Thus, the choice emphasizing consumer choice and business freedom aptly captures the goal of limited government intervention.