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 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 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.

1 answer

The response that best reflects Adam Smith's perspective on government involvement 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 infrastructure to facilitate trade and commerce, and he supported limited government intervention in areas where private enterprise could not operate effectively, such as the building of roads and other public works.