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Contracts And Procurement

Adam Smiths invisible hand theory states that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product distribution and prices that are beneficial to all individual members of a community, and hence to the community as a whole.

Discuss the following:

  • The “invisible hand” in the instant case is being used as a metaphor for government control. Do you believe that FAR 15 is too tedious? 
  • Are the costs associated with complying with FAR 15 having a deleterious impact on small business?

 

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