The "invisible hands" ability to coordinate the decisions of the firms and households in the economy can be hindered by
A)government actions that distort prices.
B)increased competition in markets.
C)enforcement of property rights.
D)too much attention paid to efficiency.

Question

Quizplus · Accepted Answer

Government actions that distort prices can interfere with the "invisible hand" of the market, which relies on price signals to coordinate economic decisions efficiently. When governments set prices or heavily regulate them, it can lead to inefficiencies and misallocation of resources, hindering the natural market processes.

The "Invisible Hands" Ability to Coordinate the Decisions of the Firms