Question

document a
\the sole purpose of all production is to provide the best possible goods to the consumer at the lowest possible price. society should assist producers of goods and services only to the extent that assisting them benefits the consumer... he the consumer intends his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. by pursuing his own interest, he frequently promotes that of the society... \according to this liberal and generous system, therefore, the most advantageous method in which a landed nation can raise up artificers (craftsmen), manufacturers and merchants of its own, is to grant the most perfect freedom of trade to artificers, manufacturers and merchants of all nations.\

• excerpts from the wealth of nations by adam smith, 1776

1. what does smith see as the role of production?
2. based on this text, what does smith say is the role of the government?

Explanation:

1. The text states "The sole purpose of all production is to provide the best possible goods to the consumer at the lowest possible price", so Smith sees the role of production as providing the best - quality goods at the lowest price to consumers.
2. It mentions "Society should assist producers of goods and services only to the extent that assisting them benefits the consumer", implying the government (as part of society) should only intervene when it benefits consumers, suggesting a limited - intervention role focused on consumer welfare.

Answer:

1. To provide the best possible goods to the consumer at the lowest possible price.
2. To assist producers only when it benefits the consumer, indicating a limited - intervention role focused on consumer welfare.