1. Smith presents a mostly happy future in a capitalist economic system.It is a system that efficiently produces the commodities people want at the prices they are prepared to pay for them under the invisible hand of the market.However, he does see some problems that can arise in a capitalist economy, and possible ways in which the invisible hand can be interfered with.

What are the potential problems Smith identified and what role, if any, could government have in fixing those problems?Do you think Smith was correct?