Question

select the correct answer.
why was friedrich von hayek against government intervention in an economy?
a. it would reduce peoples economic freedom.
b. it would increase peoples political freedom.
c. it would raise the price of goods and services.
d. it would improve the economys situation.

Explanation:

Friedrich von Hayek was a proponent of free - market economics and believed in the importance of individual economic freedom. Government intervention in the economy, according to his views, would limit the choices and freedoms that individuals have in the economic sphere. Option B is incorrect because government intervention in the economy is not directly related to increasing political freedom, and in fact, Hayek would argue it might limit overall freedom. Option C is not a core reason for his opposition to government intervention as his main concern was about freedom, not prices. Option D is incorrect as Hayek believed that government intervention would worsen the economy's situation rather than improve it.

Answer:

A. It would reduce people's economic freedom.