Question

Which is true of Adam Smith's "laissez faire" (hands off) capitalism? Select one: a. Government should own major industries b. The economy should be controlled by the ruler c. All citizens should be equal d. Government should have a limited role in the economy

Answer 1

Answer:

d. Government should have a limited role in the economy

Explanation:

Adam Smith popularly called the father of modern economics believes government should play limited role in the development and control of the economy. He supported the laissez faire capitalist system where private individuals have unrestrained freedom to invest, determine what to produce, how to produce, fix price etc. He believes government activity should not go beyond administering justice, making sure people comply with property laws, defending the nation, etc.