WJEC A-Level Government and Politics 603-1979-3
The British Constitution
The Judiciary and the Supreme Court
The UK Executive
Parliament and the Accountability of Government
Government and the Senedd in Wales
Devolution and the United Kingdom
Citizenship and Rights
The Protection of Human Rights
Democracy and Participation
Electoral Systems in the UK
Voting Behaviour in the UK
Political Parties in Wales and the UK
Pressure Groups and Social Movements
Liberalism
Conservatism
Socialism and Communism
Nationalism
The US Constitution and Federalism
Rights and Liberties in the USA
The US Congress
The US Presidency
The US Supreme Court
US Elections and Voting Behaviour
Political Parties in the USA
Liberalism
Classical liberalism and laissez-faire economics
- 3 things to know
- A2 Unit 3
Overview
Smith's image of the invisible hand, economic liberalism and free trade.
What you need to know
Answer each one before you reveal it.
Which 1776 work made the case for the free market?
Define economic liberalism.
Questions from this subtopic
Each one with the model answer underneath.
- 1
What does laissez-faire mean?
Model answer
The doctrine that the state should leave the economy alone, allowing production and exchange to be regulated by competition.
- 2
Which 1776 work made the case for the free market?
Model answer
Adam Smith's The Wealth of Nations.
- 3
Explain Smith's image of the invisible hand.
Model answer
Individuals pursuing their own gain are led, without intending it, to produce outcomes that benefit society as a whole through exchange and the division of labour.
- 4
Define economic liberalism.
Model answer
The application of liberal individualism to the economy through private property, freedom of contract, competitive markets and minimal state interference.
- 5
Why do classical liberals think markets allocate resources better than governments?
Model answer
Prices carry information about scarcity and demand that no central planner can gather, and competition punishes waste.
- 6
What is free trade, and why do liberals support it?
Model answer
Exchange between countries unobstructed by tariffs and quotas, which liberals argue enriches both parties and reduces the causes of war.
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