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Celine Luttik
on Nov 25, 2024

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Even if prices are fixed and competition is restricted by the government, the invisible hand will still work in the economy and lead to economic efficiency.

Invisible Hand

A metaphor coined by Adam Smith to describe the self-regulating nature of the marketplace where individuals' pursuit of self-interest benefits society.

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

  • Contrast the motivating factors within the market system with the consequences of government interference on the prosperity of the economy.
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Mitchell FrankenNov 28, 2024
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