Question

using your prior knowledge and sources 13 and 14, select one negative effect of americas laissez - faire economic system.
a the use of government control meant that there were only a few companies competing in each industry.
b this economic system created various businesses in competition for the benefit of the consumer.
c the lack of government action allowed businesses to grow into monopolies, affecting consumer choice.
d the lack of government regulation created conditions of constant scarcity.

Explanation:

In a laissez - faire economic system, with little government regulation, businesses can grow into monopolies. Monopolies reduce consumer choice as there are fewer alternatives in the market. Option A is incorrect as laissez - faire means less government control, not more. Option B is a positive aspect, not a negative one. Option D is not a typical negative associated with laissez - faire; scarcity is more related to resource availability rather than lack of government regulation in a general sense.

Answer:

C. The lack of government action allowed businesses to grow into monopolies, affecting consumer choice.