Asked by
Celine Luttik
on Nov 25, 2024Verified
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.
Verified Answer
MF
Learning Objectives
- Contrast the motivating factors within the market system with the consequences of government interference on the prosperity of the economy.
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