Government intervention in the marketplace,Smith reasoned,is needed under only which of the following conditions:

Question

Quizplus · Accepted Answer

Adam Smith, often considered the father of modern economics, acknowledged that while the pursuit of self-interest in a free market could lead to societal benefits (the "invisible hand"), there were circumstances under which government intervention was necessary. These include ensuring justice (when contracts are violated or when merchants commit injustices) and addressing instances where the pursuit of self-interest fails to yield desired social welfare outcomes.

Government Intervention in the Marketplace,Smith Reasoned,is Needed Under Only Which