Question

Identify which of the following examples reflects a way Adam Smith thought the government should be involved in the economy.(1 point)
Responses

The government builds a road from a city to a major seaport and charges a fee for cars to drive on that road.
The government builds a road from a city to a major seaport and charges a fee for cars to drive on that road.

The government decides to let businesses set new policies about international trade.
The government decides to let businesses set new policies about international trade.

The government decides to limit how many flowers any individual person can buy because supply is limited.
The government decides to limit how many flowers any individual person can buy because supply is limited.

The government decides to prohibit box companies from selling their boxes to another country overseas.

Answer 1

The example that reflects a way Adam Smith thought the government should be involved in the economy is:

**The government builds a road from a city to a major seaport and charges a fee for cars to drive on that road.**

Adam Smith believed in the importance of government involvement in providing public goods and infrastructure, such as roads, which facilitate trade and commerce. He argued that such infrastructure is essential for the functioning of a market economy.