Final answer:
Laissez-faire economics advocates for minimal government intervention in the economy, with market forces alone driving economic activity. The correct answer is that laissez-faire supporters did not believe the government should engage in any of the activities listed, but instead should let the economy self-regulate.
Step-by-step explanation:
Supporters of laissez-faire economics believed that the government's role should be minimal, advocating for a hands-off approach where market forces would dictate economic outcomes. According to this belief system, government intervention, whether through regulation, establishing monopolies, or price controls, was seen as a hindrance to the natural flow of the economy.
Therefore, the correct answer to the student's question is that supporters of laissez-faire economic theory believed the government's only role was to refrain from direct involvement in the economy, implying none of the actions listed (A to D) were supported by them.
In historical context, laissez-faire practices were prominent until the 1930s, when the Great Depression highlighted the need for government intervention in the form of Keynesian economics. Early advocates like Thomas Le Gendre espoused the view that less government intervention would lead to a more efficient and self-regulating economy, a sentiment that was practical given the logistical challenges of the time.
However, as the adverse effects of minimal government oversight became apparent, such as the formation of monopolies and unsafe working conditions, there was a shift towards increased regulation, as seen in the actions of President Theodore Roosevelt and the introduction of laws addressing labor and safety issues.