Founders reacted to Mercantilism by supporting which approach to business regulation?

• A. Expanded government control of business
• B. Heavy government subsidies to industry
• C. Minimal governmental regulation of business
• D. Nationalization of trade

Answer: (C)

Founders believed in economic freedom and limited government involvement in business. Mercantilism tied national wealth to government-controlled trade and commerce, with policies that directed who could trade, what could be produced, and at what prices. In contrast, the Founders favored letting individuals and businesses operate with fewer rules from above, trusting market forces and private initiative to drive growth. That view leads to minimal governmental regulation of business as the most fitting approach, since it encourages innovation, competition, and private property rights without heavy interference. The other options would require more government control, subsidies, or even nationalization, which run against this preference for economic liberty.