Question

Describe two roles of government intervention that Adam Smith conceded were necessary in their approach to the economy.

Answer 1

Adam Smith is considered the founder of modern economics. He stated that the economic is guided by an invisible hand and that governments should interfere less in some areas of the economic to make it more efficient. He specified that government intervention could be best used in these areas.

1) The creation of social security regulations and also provide national defense to protect the society and all citizens from all the violence and invasions or attack forces from other societies. These of course,  is what every society  from every country would like to have.

2)  The government should establish an exact administration of justice in the context of order and law. These refers to have a court system to apply the right justice for all citizens of a society in an equal manner.  

Answer 2

For Adam Smith, two important roles that all government must fulfill are:

1) Create institutions that guarantee the safety of citizens as well as justice and respect for their civil rights.

2) Make trade easier by creating public infrastructure and means of communication and transportation.