Question

Use the following quote from Adam Smith to answer the question below:

"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest."

Source: Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations

Which of the following systems believes that the role of the government is only to promote competition and provide public goods?

a.Capitalism

b. Socialism

c. Communism

d. Laissez-faire

Answer 1

The quote from Adam Smith expresses the idea of capitalism system which shows that the role of the government is only to promote competition and provide public goods. The aim of such statement is to prevent government of monopolizing by independent companies.