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.

Question

Quizplus · Accepted Answer

The market mechanism relies on the forces of demand and supply to coordinate the self-interested decisions of producers and consumers. By limiting production, guilds interfere with the natural functioning of this mechanism, leading to inefficiencies and higher prices. The other options do not directly relate to the coordination of self-interested decisions in a market economy.

In 18th Century Europe,governments Gave Guilds Legal Authority to Limit