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

Question

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

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

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 that the government should provide certain public goods and infrastructure, such as roads, which are necessary for commerce and trade, but should generally allow markets to operate freely. Building and maintaining infrastructure is a role Smith would support, as it facilitates economic activity.