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

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

Answer 1

Adam Smith believed that government involvement in the economy should primarily focus on providing public goods and infrastructure while allowing the market to operate freely. Based on the examples given, the response 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.**

This example aligns with Adam Smith's idea that the government should facilitate economic activities by investing in infrastructure, which benefits the economy while enabling individuals and businesses to operate effectively.