Question

What does liberalism stand in the economic sphere?
A. Freedom of Markets
B. Control over Markets
C. Heavily taking goods sold in the Markets
D. Imposition of restrictions on the movement of goods across territories.

Answer 1

Hint:
In Europe, Liberalism in political terms means equality, independent formation and standing to work. This meant that middle-class liberals demanded the abolition of the monarchy and wanted to make the country a republic where people had the freedom to express themselves. And political liberals also refer to those who choose their government.


Complete solution:
Economic liberalism means that the freedom of markets and the abolition of unjust duties on the movement of goods from one territory to the other territory. And also liberal stand for ‘the quality or state of being liberal’.

Liberalization of the economy means freeing the candidates from direct and physical imposed by the government. The government had imposed layers of controls on private enterprises like licensing permission and the Quota system. All these restrictions were removed in liberalisation.

Economic Liberalism is a political and economic philosophy based on stable support for the market economy an private property in the terms of production. However economic liberal can be supporting for government regulation to a certain degree. In the free market, they tend to oppose government intervention, when it inhibits open competitions and free trade. Economic liberalism arose in the response to mercantilism and feudalism.

The objective of Economic Liberalism;-

- According to it, people should be free to trade with wherever they want.
- No intervention of government, institutions and agencies in the free market.
- Economy is made up for individual people.
- People make their own decisions in trading in a country or outside of their country.



Hence, the correct answer is option A.

Note:
Economics is all about production, distribution and consumption of goods and services and Liberalism means to free something. So, economic liberalism generally means that free production, distribution and consumption of goods and services. Economic Liberalism was firstly analyzed by Adam Smith who is known as the father of economics. He wrote the book ‘The Wealth of Nations’ in 1776 in which he advocated minimal interference of government in the market economy.