Question

Adam Smith, who is considered "the father of capitalism," believed in a laissez-faire approach to the economy. Smith described one exception, though, when governments should get involved. What role did Smith believe government could and should play?

To protect the working poor when business owners became too greedy

To control production in times of war or military crisis

To control trade with other countries

To protect the interests of factory owners when workers went on strike

Answer 1

To control production in times of war or military crisis.

Smith supported a largely laissez-faire economy but argued the government must provide for national defense (and related emergency measures), administer justice, and build certain public works — so wartime controls or interventions could be justified.