In 18th century Europe, governments gave guilds legal authority to limit production of goods
This authority obstructed the market mechanism because the guild's actions prevented the forces of ________ from coordinating the self-interested decisions of producers and consumers.
A) demand and supply B) nature
C) opportunity cost D) absolute advantage
A
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Holding all other things constant, when the price level falls, interest rates:
a. rise and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding. b. rise and firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding. c. falls and firms want to borrow less for new plants and equipment and households want to borrow more for homebuilding. d. falls and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
Economists understand that using statistical discrimination
A. is never rational. B. means some individuals are discouraged from acquiring skills. C. is always illegal. D. All of the above