Question

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

Answer 1

Government had a very limited but important role. In it were 3 major parts

• 1. administer justice.
• 2. protect the nation from outside aggression.
• 3. enforcing private property rights.

Answer 2

Answer:

Role did Smith believe government could and should play is discussed below.

Explanation:

• He assumed that management had a significant role to perform.
• Like most contemporary followers in open markets, Smith concluded that the administration should implement agreements and grant licenses and copyrights to promote creativity and new approaches.
• Adam Smith assumed that "Government should restrict its movements to serve justice, supporting private inheritance rights, and protecting the nation against invasion.