The Concept of "The Invisible Hand" Suggests That to Attain

question 12

Multiple Choice

The concept of "the invisible hand" suggests that to attain efficiency,the government should

• A) guide economic activity.
• B) set prices.
• C) leave prices and output decisions to the competitive market.
• D) regulate all production decisions, but not price decisions.
• E) make sure that a command system is used to allocate resources.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.