Final answer:
Adam Smith advocated for a limited government role, restricted to infrastructure support and national defense, while endorsing a laissez-faire economic approach where the market's invisible hand drives efficiency and societal wealth.
Step-by-step explanation:
Adam Smith, a seminal figure in economics, believed that governments should have a limited but defined role in the economy. In his classic work The Wealth of Nations, Smith argued that apart from ensuring a stable and peaceful society, the government should be involved in activities such as building roads and providing national defense, essentially the basic functions that support the economy's infrastructure. However, beyond these functions, Smith was a strong proponent for a laissez-faire economic approach, advocating for minimal government interference in the markets. He believed that the economic system works best when driven by the 'invisible hand' of the free market, where supply and demand dictate production and distribution. Smith was critical of mercantilism and government-granted monopolies, suggesting that competition should drive efficiency and innovation, leading to lower prices and greater societal wealth.