Final answer:
Option (d) 'Government should provide national defense, a system of justice, and public works' aligns with Adam Smith's beliefs; he acknowledged that while the free market should operate with minimal government intervention, certain public goods necessitate government involvement.
Step-by-step explanation:
To address the assertion regarding Adam Smith's beliefs, option (d) 'Government should provide national defense, a system of justice, and public works' can indeed be attributed to Smith's theories on the role of government. Contrary to the commonly held view of Smith as a steadfast advocate of laissez-faire economics, he recognized the need for some government intervention in providing certain public goods. Smith noted that these public goods, including national defense and a system of justice, are necessary because they are not efficiently provided by the market due to their non-excludable and non-rivalrous nature.
More specifically, Smith was of the opinion that the government should perform functions that could not be effectively handled by private enterprises, such as defense against foreign aggression, maintaining civil order through a system of justice, and undertaking the construction of public works, like roads and bridges, that benefit society as a whole. These roles ensure the smooth running of a society but are not directly profitable for individual businesses to undertake. Consequently, the statement that government should provide national defense, a system of justice, and public works does align with Smith's viewpoint and cannot be regarded as contrary to his beliefs.