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.

Question

Quizplus · Accepted Answer

The concept of the "invisible hand," introduced by Adam Smith, relies on free market competition to guide resources to their most efficient uses. If prices are fixed and competition is restricted by the government, this mechanism is hindered, preventing the economy from reaching efficiency through market forces alone.

Even If Prices Are Fixed and Competition Is Restricted by the Government