The “invisible hand” cannot fully work when government economic polies are in place. Explain
Please provide the best answer for the statement.
The “invisible hand” moves the economy toward the efficient allocation by allocating resources to their best uses. When government economic policies restrict the free market, a misallocation of resources can occur. Unless government takes action to correct these allocations the market will remain inefficient. Government action can take a significant amount of time and full information may not be available to the government officials.
You might also like to view...
In 1913, Congress and the President did not envision that the Fed would control
A) the money supply. B) discount loans. C) lender-of-last-resort activity. D) broad control over most aspects of money and the banking system.
The Lorenz curve is a way of illustrating the distribution of income
a. True b. False