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.True/false

Respuesta :

Answer:

FALSE

Explanation:

If rates are not set and the government does not limit trade, the invisible hand will continue to function in the market and will result in economic output.

  • Government plays an important role in controlling prices and distribution in order to sustain a stable economy in the country.
  • To protect consumer interest, the policy has to fix the price of goods that is generally lower than the equilibrium level.

Therefore this statement is incorrect.