Question

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

Answer 1

Adam Smith, often referred to as the father of modern economics, believed in limited government intervention in the economy. However, he did recognize certain roles that a government should play. One example reflecting his views on government involvement could be the provision of public goods and services, such as infrastructure and national defense, which would not be efficiently provided by the private sector alone.

If you have specific examples to choose from, please provide them, and I can help identify which one aligns with Adam Smith’s ideas on government involvement in the economy.