The one area in which Adam Smith did admit the government must be involved in the economy pertained to ______________.

Question

Quizplus · Accepted Answer

Adam Smith, often referred to as the father of modern economics, believed in minimal government intervention in the economy. However, he did recognize the necessity of government involvement in certain areas, such as the construction and maintenance of public works and infrastructure (roads, bridges, etc.) that the private sector would not adequately supply. This is because these projects typically do not offer immediate or direct returns on investment, making them unattractive to private investors but essential for the functioning of a society and its economy.

The One Area in Which Adam Smith Did Admit the Government