The concept of "the invisible hand" suggests that to attain efficiency,the government should
A) guide economic activity.
B) set prices.
C) leave prices and output decisions to the competitive market.
D) regulate all production decisions, but not price decisions.
E) make sure that a command system is used to allocate resources.

Question

Quizplus · Accepted Answer

The concept of "the invisible hand" states that the market will naturally lead to efficiency without government intervention. Therefore, the best choice is to leave prices and output decisions to the competitive market, which is option C.

The Concept of "The Invisible Hand" Suggests That to Attain