1. What role does government play in capitalism?

In a capitalist economy, the role of government is very limited. The main functions of government, as given by Adam Smith, are to maintain law and order in a country, make national defense stronger, and regulate money supply. According to Smith, the market system administers various economic functions.

Explanation:

The only purpose of government would be to protect its citizens from force or fraud.

he sent troops to protect the students as they entered the school.