If the government implements regulations and policies in the economy, it tends to replace the function of the invisible hand.

Question

Quizplus · Accepted Answer

The invisible hand refers to the concept that the market forces of supply and demand will naturally lead to an efficient allocation of resources. When the government implements regulations and policies, it is directly intervening in the market and can therefore replace the function of the invisible hand.

If the Government Implements Regulations and Policies in the Economy